A Major Moment for the Gig Economy

August marked a big shift in Australia’s workplace landscape. The Fair Work Commission’s first-ever Minimum Standards Order for on‑demand delivery workers officially kicked in, setting minimum pay rates and new protections for on-demand workers who deliver food, drinks, alcohol, or groceries through apps like Uber Eats and DoorDash.

This is a major moment for the gig economy. For years, delivery workers have been earning well below the national minimum wage, with some reporting hourly earnings as low as $15! Last week’s changes aim to bring stability, fairness, and transparency to a sector that has grown rapidly – and often without clear rules.

What actually changed?

Delivery workers who are considered “employee‑like” contractors now have guaranteed minimum hourly rates for their engaged time (the period between accepting and completing a delivery). The new minimums are:

• $31.30/hour for workers on bicycles, e‑bikes, e‑scooters, or no vehicle
• $31.50/hour for motorcycle or combustion scooter riders
• $32/hour for workers using a car or van (up to 1 tonne)

Platforms must top up a worker’s pay if their earnings over a period fall below required minimums. They must also provide insurance for on‑the‑job injuries and comply with rules around vehicle expenses, record‑keeping, dispute resolution, and giving workers unpaid time away from the app.

Why this matters for small and medium businesses

Even if you don’t directly engage delivery workers, these changes will ripple across the economy.

• Compliance expectations are rising. The gig economy is moving closer to traditional employment standards. SMEs that use contractors – in any capacity – should expect more scrutiny and clearer rules in the future.
• Cultural shift toward fairness. This is part of a broader movement to close loopholes and ensure workers aren’t trading flexibility for insecurity. The government has signalled that more minimum standards orders may follow.
• Cost structures may shift. Platforms may adjust fees or delivery charges to meet the new minimum pay requirements.
• More predictable service levels. Workers earning fairer wages may be more stable and reliable, reducing the churn that has long affected delivery services.

From an HR perspective

This is a reminder that workforce models are evolving. The line between contractor and employee is becoming more regulated, especially where workers behave like employees but are engaged through apps or platforms.

For small businesses like yours, it’s worth asking:

• Do we rely on contractors in ways that resemble employment?
• Are our contractor arrangements transparent, fair, and well‑documented?

These changes also highlight the importance of clear communication, fair pay practices, and staying ahead of regulatory updates – all areas where HR plays a crucial role.

Australia is now one of the first countries to introduce legally enforceable minimum standards for gig delivery workers – a move described as “world‑leading” by the Transport Workers’ Union. It raises an interesting question: Could this be the start of broader minimum standards across other gig sectors?

For small and medium sized businesses, keeping an eye on these developments isn’t just good compliance – it’s good business.

If you’d like advice on compliance in your business, book in for a free consultation and let us help you.