On-demand delivery workers have new minimum standards that start today, including minimum pay rates based on an hourly rate of at least $31.30, as the first ever Fair Work Commission Minimum Standards Order takes effect.
The new minimum standards cover employee-like workers who are engaged through an application (for example, a phone app or website) operated by a digital labour platform operator to make deliveries on request (often referred to as 'gig work'). The work must mainly involve collecting and delivering consumables (such as food, beverages and liquor) or grocery items to a customer as soon as possible.
It also covers the digital labour platform operators that engage these workers.
The 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.
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, which 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 order defines engaged time as the period of time spent completing an engagement, as recorded in the application, other than certain periods of time that are expressly excluded.
These minimum rates are subject to future adjustment, including through annual wage review increases. The Commission will also review the order after related applications for other minimum standards orders are closer to being finalised.
The Fair Work Commission, the national workplace tribunal, is different to and separate from the Fair Work Ombudsman, the national workplace regulator.
Fair Work Ombudsman Anna Booth urged workers and businesses that are covered by the order to read up on the new minimum standards, including through FWO's online information.
"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 order, for example, sets out that the employee-like worker determines for themselves whether and when to accept engagements. Namely, if they want to take time away from an app, they can choose not to accept engagements - and during this time, won't be paid.
The order also includes terms about vehicle repairs and registration, record-keeping, fines, insurance, consultation about significant changes, information sharing, workplace delegates' rights and more.
Ms Booth urged workers and businesses that are covered by the order to seek advice from the FWO if needed. "On-demand delivery workers can also seek information from their platform operator, and their union if they are a member," Ms Booth said.
