Australia sets historic pay floor for delivery drivers

Australia sets historic pay floor for delivery drivers

The Fair Work Commission has today introduced a pay floor for roughly 250,000 gig economy workers, establishing mandatory baselines across pay rates, personal accident insurance, formal dispute resolution pathways, consultation on major operational shifts, and the right to unpaid time away. An RMIT expert unpacks these world-leading changes. 

Professor Shelley Marshall, School of Law: 

"Today’s commencement of the Fair Work Commission’s minimum standards order is a landmark shift for Australia’s gig economy. 

"For over a decade, app-based delivery workers have operated in a regulatory void as independent contractors, bearing the financial and physical risks of the platform model while lacking baseline entitlements to minimum wages or standard accident compensation. 

"The establishment of an earnings floor of $31.30 per hour for e-bike couriers for their 'engaged time', defined as the window between accepting and completing an order, directly addresses chronic underpayment and intense work pressure. 

"By providing baseline financial stability, these standards also serve a vital work health and safety function. When delivery riders are not forced to rush dangerously between multiple apps just to earn an hourly living, we significantly reduce road safety risks."

Shelley Marshall is Deputy Dean (Research and Innovation) at the School of Law at RMIT University. Her work spans business, human rights and labour law; with a special interest in the regulation of informal work and labour law in poor and middle-income country contexts. 

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