Here's what is changing about how food delivery workers are paid

Food delivery workers to receive better pay under new minimum standards In short: New interim minimum standards for food and grocery delivery workers come into effect today, improving conditions on pay and insurance. It will see workers for platforms such as Uber Eats and DoorDash receive at least $31.30 an hour for engaged time, above the national minimum wage of $26.44. It comes after the Albanese government introduced gig economy reforms two years ago that gave new powers to the Fair Work Commission. Gig worker Alexi Edwards spends roughly 40 hours on the road delivering orders every week. At times, she says her pay was as low as $15 an hour. It has left the 30-year-old anxious and uncertain as the cost of rent and bills rise. "In those moments you ask yourself why you're doing this, it's not the best feeling," Ms Edwards told the ABC. But she hopes Australia's first minimum standards for gig economy workers, which come into effect today, will provide some level of stability for her and others. The changes are expected to affect about 250,000 workers, and will see food and grocery delivery drivers receive higher pay and new insurance protection. The federal government's gig worker reforms were introduced two years ago, which empowered the Fair Work Commission to set minimum standards for "employee-like" contractors. Until now, most gig workers operated as independent contractors, which put them outside of many workplace protections available to employees. The Transport Workers Union's (TWU) national secretary Michael Kaine described the changes as a decade in the making. "It's history in the making really, not just in Australia, but right around the world,"Mr Kaine said. "[When] the gig economy came into Australia in about 2012 and it engaged workers as independent contractors, it pushed them outside of the protections that have been built up for years." What are the new minimum standards? The changes under the Fair Work Commission order for food delivery drivers will see a new "interim" minimum standard order, which will create an earnings floor. Workers for platforms such as Uber Eats and DoorDash will receive at least $31.30 an hour for engaged time, above the national minimum wage of $26.44. The minimum hourly rate for engaged time, which was the period between accepting and completing a delivery, differs depending on the choice of vehicle: - E-bikes $31.30 an hour - Motorcycles $31.80 an hour - Cars $32 an hour To ensure food delivery drivers are paid the earnings floor for their engaged time working, platforms will need to calculate a worker's total earnings over a 21-day period. It means platforms will need to increase a workers' pay if they are paid on average less than the earnings floor. Workers will not be paid for the time waiting for a new delivery job but will be paid for time waiting at restaurants for orders they have already accepted. Under the new standards, there have also been changes to insurance arrangements between platform and workers. Workers are still required to cover the costs of insurance for their vehicles but now platforms will need to offer a reasonable minimum level of personal accident cover. Platforms must also now consult and notify workers about significant changes such as exiting the market. Other changes brought by the new standards include: - a new feedback forum for workers to raise concerns - a new procedure for resolving disputes - a right to unpaid time away How we got to the new standards Following a ruling by the Fair Work Ombudsman in 2019, gig economy workers have been classified as independent contractors rather than employees. Loading...It has meant gig workers did not have access to employee entitlements such as minimum wage, annual leave, sick leave or other benefits. But in 2024, the Albanese government passed the 'Closing Loopholes' reforms which legislated protections for some gig economy workers such as food delivery drivers. It gave the Fair Work Commission new powers to regulate the gig economy with minimum standards that are legally enforceable. University of Sydney's Dr Alex Veen, who specialises in employment relations, said in the two years since the legislation passed, the union and platforms such as Uber Eats and DoorDash have been in negotiations. Before the government passed the new laws both delivery platforms said it could lead to price increases of at least 85 per cent. Associate Professor Veen said despite initial concerns, the new minimum standards were agreed after a consensus was reached between all parties. "It's very pleasing to see that it's gone through a process of cooperation and negotiation rather than 'we've had an outcome that was enforced by the commission',"he said. "It's created mechanisms and opportunities for workers to better engage with the platforms. "It's not necessary that it's been a very costly type of order that's been developed, but one that has given a lot more certainty to workers." Uber Eats' managing director Ed Kitchen said the reform maintained the flexibility of gig work while also improving conditions for workers. "These standards provide a guaranteed safety net while protecting the flexibility delivery people tell us they value most," Uber Eats Australia and New Zealand managing director Mr Kitchen said. A DoorDash spokesperson said the new minimum standards were an example of what happens when industry and unions find common ground. "This is modern regulation that will protect workers without regulating away the flexibility that brought them to the work in the first place," a spokesperson said. Professor Veen added the new minimum standards were only an interim order given by the Fair Work Commission, and could also change. "So they are a starting point that will allow us to further evaluate whether or not this is actually both sustainable from a worker and an organisational perspective. "It's effectively a living document." What it means for food delivery drivers Ms Edwards has already calculated how many engaged hours she works, at roughly 30 hours a week. The new minimum standards mean she can begin to slow down, rather than continue to rush from job to job to make enough for decent pay. Ms Edwards said riding her e-bike in Brisbane when she's having to make multiple orders can feel unsafe at times. According to the Transport Worker's Union at least 25 gig workers have died since 2017. "The roads are not built for bikes and it's pretty clear to tell. It can get quite scary sometimes,"she said. "[But now] I'd be able to live life not just on the edge. I'd be able to like plan, and it just makes it all a lot more sustainable in the long run." Ms Edwards said the minimum standards should not just include food delivery workers. "It should extend to the entire gig economy with this just being the first step," she said.