A Fair Work Commission (FWC) order giving delivery drivers a minimum hourly wage and a right to unpaid “time away” comes into effect today.
Previously, drivers were paid per delivery, rather than per hour.
The FWC’s order is the result of negotiations between the Transport Workers Union (TWU), Uber Eats and DoorDash.
Amazon also made submissions to the FWC.
Here’s what’s changing.
Background
In August 2024, a new federal law came into effect allowing the FWC to set “minimum standards” for gig workers, including leave and pay.
It covers gig workers hired as “independent contractors” by companies like Amazon, Uber, and DoorDash.
Under the legislation, gig workers are considered “employee-like” workers of these companies.
The month the law came into effect, the TWU submitted an application to the FWC, asking it to create a minimum standards order (MSO) for workers who deliver food, beverages, and other goods.
The union negotiated an agreement with Uber Eats and DoorDash to set a minimum rate of pay for workers and provide accident insurance, which all three proposed to the FWC.
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Following consultation with other businesses and industry groups, the FWC made an order covering the minimum wage and new standards.
Changes
Delivery drivers will now earn a minimum of $31.30 per hour that they work.
If they don’t earn that amount from deliveries alone, the company they work for must pay the difference, calculated over a set period of time.
Example: Joe works 60 hours over two weeks for Uber Eats, earning $1,500.
At a minimum hourly rate of $31.30, he would have earned $1,878.
Uber Eats pays him $378 to make up the difference.
Both companies and drivers now need to take out insurance – drivers for their vehicles, and companies to cover any accidents on the job.
A company must now notify its employees if it plans to shut down.
In 2022, Deliveroo announced it would exit the Australian market without telling its drivers first.
