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

• Australia has implemented new minimum standards for approximately 250,000 gig economy workers, empowering the Fair Work Commission to regulate “employee-like” contractors who were previously excluded from workplace protections.
• The reforms introduce a minimum earnings floor of $31.30 per hour for food and grocery delivery drivers, aiming to provide financial stability for workers who often faced unpredictable and low wages.
• In addition to higher pay, the new legislation provides gig workers with essential insurance protections and legal rights that align them more closely with traditional employees.

For 30-year-old gig worker Alexi Edwards, spending 40 hours a week on the road often translates to earnings as low as $15 per hour. Amidst the rising costs of rent and utilities, this financial instability has left her in a constant state of anxiety. “In those moments you ask yourself why you’re doing this; it’s not the best feeling,” Ms. Edwards told the ABC.

However, a significant shift begins today as Australia introduces its first minimum standards for gig economy workers—a move Edwards hopes will finally provide a sense of security for her and her peers. These landmark industrial relations reforms empower the Fair Work Commission to set mandatory standards for approximately 250,000 “employee-like” contractors across the rideshare and food delivery sectors.

Until now, most gig workers were classified strictly as independent contractors, a status that left them outside the reach of traditional workplace protections. Transport Workers Union (TWU) National Secretary Michael Kaine described the new legislation as a global milestone. “It’s history in the making, not just in Australia, but right around the world,” Mr. Kaine said. He noted that since the gig economy arrived in Australia around 2012, workers have been pushed outside the safety nets built up over decades.

The new framework introduces an “interim” minimum standard order specifically designed to create a financial floor for the industry. Under these changes, food and grocery delivery drivers for platforms like Uber Eats and DoorDash will receive new insurance protections and a guaranteed minimum wage of $31.30 per hour for time spent actively engaged in deliveries. This shift aims to bridge the gap between flexible gig work and the essential protections typically reserved for full-time employees.

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Original article and photo by "ABC News"