New minimum pay rates start for gig workers

A Delivery biker looking over their shoulder.
Delivery workers on labour platforms will be entitled to minimum pay standards from this week. | Photo: Tempura, iStock

On-demand delivery workers will be required to be paid a minimum pay rate of at least $31.30 under new rules that take effect this week.

The new minimum standards cover “employee-like workers” who are engaged through an app or website operated by a “digital labour platform operator” to make deliveries on request.

Fair Work Ombudsman Anna Booth urged workers and businesses to be across the changes.

“With the new minimum standards order now in effect, on-demand delivery workers are entitled to minimum rates, to dispute resolution processes, have a right to unpaid time away, and more,” Ms Booth said.

“The first step to compliance with the standards is to educate yourself on these terms, whether you’re a worker or business.”

The Fair Work Commission’s Interim On-Demand Delivery Employee-like Worker Minimum Standards Order is a legally enforceable order that sets rules about pay and conditions.

“This includes a requirement for digital labour platform operators to make a top-up payment if an employee-like worker’s earnings for an earnings period (which can be up to 21 days) fall below the applicable minimum earnings floor,” Fair Work said in a statement.

“The earnings floor is calculated by multiplying the worker’s total hours of engaged time by the relevant minimum hourly rates set by the order.”

The minimum rates are:

  • $31.30 for food delivery gig workers with no vehicle, on pedal-powered or electric bicycles, or on electric scooters
  • $31.50 for those on motorcycles or combustion scooters
  • $32 if they use a car or van (up to 1 tonne capacity).

The Commission said the minimum rates were subject to future adjustment, including through annual wage review increases.

More information is available at www.fairwork.gov.auor call the Fair Work Infoline on 13 13 94 for more information. An interpreter service is available on 13 14 50.