Australia's Food Delivery Platforms Reach Historic Agreement on Minimum Pay and Worker Protections

Australia's two largest food delivery platforms have reached a landmark agreement with the Transport Workers' Union to establish minimum pay rates and enhanced workplace protections for delivery drivers. The groundbreaking deal represents the first of its kind globally and has been submitted to the Fair Work Commission for formal approval.

The agreement between Uber Eats, DoorDash, and the Transport Workers' Union sets a minimum safety-net rate of $31.30 per hour, commencing on 1 July 2026, with an additional increase scheduled for 1 January 2027. The protections will cover all transportation methods used by delivery workers and introduce new provisions including worker representation rights, accident insurance coverage, dispute resolution mechanisms, and feedback systems.

The food delivery sector has long been identified as an area where workers face considerable vulnerability. Delivery drivers, many of whom are students and migrants, operate under irregular hours and insecure contracts with limited access to standard workplace protections. These conditions create heightened risk of exploitation and exposure to unsafe working practices.

Australia's Anti-Slavery Commissioner Chris Evans has publicly endorsed the development. "The growth of gig work presents real opportunities, but also clear risks of exploitation. This agreement is a positive step in the right direction to protect delivery workers from unsafe and unfair practices, and to reduce vulnerability to more serious harms, including modern slavery," Evans stated. "It demonstrates what can be achieved when workers, unions and platforms negotiate in good faith, and it provides an important model for improving protections across the gig economy."

The rapid expansion of gig economy work globally has prompted increased scrutiny of labour standards in the sector. Industry experts have noted that the model's reliance on irregular work arrangements, opaque compensation structures, and minimal access to traditional workplace protections creates substantial risk of labour exploitation and modern slavery conditions.

Evans emphasised the potential broader implications of the Australian arrangement. "While this agreement focuses on food delivery, it sends a broader message about the importance of fair, safe, and transparent work in all parts of the gig economy. Australia has an opportunity to lead by example, showing that even non-traditional work can provide dignity, security, and protection against exploitation," he said.

The successful negotiation could establish important precedent for other countries and additional gig economy sectors seeking to improve worker standards and reduce exploitation risks.