Quick Summary
Quick Summary
- The Fair Work Commission’s first Minimum Standards Order for on-demand delivery workers took effect on 17 August 2026
- Minimum pay rates range from $31.30 to $32.00 per hour depending on vehicle type, increasing by $0.50 from January 2027
- Platforms must provide personal accident insurance, keep records, consult workers, and follow dispute resolution procedures
- Workers remain classified as employee-like contractors, not employees, preserving gig flexibility
- Non-compliance exposes platform operators to FWC enforcement, top-up payments, and penalties
On 17 August 2026, Australia’s first Minimum Standards Order for on-demand delivery workers took effect. The Fair Work Commission’s landmark decision sets minimum hourly pay rates, mandatory insurance, record-keeping, and dispute resolution procedures for digital platforms engaging food, drink, and grocery delivery workers. For employers and platform operators, this fundamentally changes how gig economy arrangements are regulated under the Fair Work Act 2009.
If your business uses or operates a digital platform to engage delivery workers, you need to understand these standards immediately. Non-compliance exposes you to FWC enforcement, mandatory top-up payments, and penalties.
Fair Work Commission Delivery Drivers: What the New Order Covers
The Minimum Standards Order applies to employee-like workers performing on-demand delivery through digital platforms. It covers delivery of food, drinks, and groceries, binding all platform operators including UberEats, DoorDash, Menulog, and any new entrants.
The term employee-like is deliberate. The Fair Work Commission made clear these workers are not employees. They retain contractor status and gig flexibility. However, the Commission found that the bargaining power imbalance between platforms and individual workers justified minimum standards to prevent exploitation.
If you engage delivery workers through an app, those workers now have enforceable rights to minimum pay, insurance, consultation, and dispute resolution. For broader context, see our guide to HR best practice for Australian employers.
Minimum Wage for Delivery Driver Australia: New Pay Rates
The order sets three pay tiers from 17 August to 31 December 2026:
- $31.30 per hour for workers with no vehicle, or using a pedal-powered bicycle, electric bicycle, or electric scooter
- $31.50 per hour for motorcycle or motor scooter
- $32.00 per hour for car or other motor vehicle
These rates cover all time engaged on the platform, including waiting for orders and traveling between pickups, not just active delivery time. The Commission set an earnings period of up to 21 days. If a worker’s earnings fall below the minimum for hours worked, the platform must make a top-up payment.
From 1 January 2027, all rates increase by $0.50 per hour, then annually per the FWC’s minimum wage review. For guidance on managing payroll compliance across mixed contractor and employee arrangements, our employer resources cover the full range of obligations.
How Many Hours Can a Delivery Driver Work?
The order does not set maximum hour limits. Because it applies to employee-like contractors, not employees, NES limits like the 38-hour ordinary week do not automatically apply. However, platforms must still comply with work health and safety obligations, including managing fatigue risks for workers who work extended hours across multiple platforms.
The order includes a right to unpaid time off, recognising that delivery workers may need leave without fear of deactivation. For more on how working hours interact with modern awards compliance, our guides cover the NES, award obligations, and contractor arrangements.
📅 Effective 17 August 2026
The FWC Minimum Standards Order is now live. If you operate a digital platform engaging on-demand delivery workers, you must comply with minimum pay rates, insurance, record-keeping, and consultation obligations immediately.
Key Takeaways
Key Takeaways for Employers
- ✓The order covers food, drink, and grocery delivery workers engaged through digital platforms like UberEats and DoorDash
- ✓Three pay tiers: $31.30/hr (bicycle or e-bike), $31.50/hr (motorcycle or scooter), $32.00/hr (car)
- ✓Platforms must top-up earnings if a worker’s pay falls below the minimum during each 21-day earnings period
- ✓Record-keeping, consultation, dispute resolution, and insurance obligations apply to all covered platforms
- ✓Non-compliance exposes platforms to FWC enforcement action and penalties
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On-Demand Delivery Driver: Independent Contractor or Employee?
The order does not change the legal classification. Delivery workers remain independent contractors, not employees. The FWC used the term employee-like to signal that while these workers share some characteristics with employees, they are not converting to employee status.
Workers are not entitled to paid annual leave, personal leave, or notice of termination under the NES. However, the order includes unfair deactivation protections, preventing platforms from terminating access without a valid reason.
For employers, this matters in two ways. If you engage delivery workers directly, different rules apply depending on genuine contractor status versus sham contracting. If you use platforms to deliver your products, the platform bears compliance, but you should understand the standards to manage supply chain relationships. The Fair Work Ombudsman has published detailed guidance on the order.
Insurance, Record-Keeping, and Platform Obligations
Beyond minimum pay, the order imposes several obligations:
Personal accident insurance. Platforms must organise and pay for personal accident insurance providing reasonable minimum cover. Workers remain responsible for third-party vehicle insurance.
Record-keeping. Platforms must maintain records of worker earnings, hours engaged, and top-up calculations, available to the FWC on request.
Consultation. Platforms must consult workers on changes to pay structures, algorithms, and working conditions.
Dispute resolution. Platforms must have a process allowing workers to raise concerns without fear of deactivation.
Workplace delegate rights. Workers may be represented by a delegate, including the Transport Workers’ Union.
Gig worker information statement. Platforms must provide workers with an information statement explaining their rights.
For employers strengthening compliance frameworks, our free employment documents include contractor agreements, workplace policies, and HR checklists.
What Non-Platform Employers Need to Know
If you are a restaurant or retail business using delivery platforms, you are not directly responsible for the order. The obligation sits with the platform operator. However, platform fees may increase as costs are passed on. Review your platform contracts to understand how cost increases are handled.
If you engage delivery drivers directly, the order does not apply, but you must ensure proper classification and pay under the applicable award or agreement. Businesses directly employing drivers should refer to our guide on employment contracts to ensure compliance.
Compliance Risks and Enforcement
The FWC has enforcement powers over the order. Platforms that fail to comply face orders for top-up payments, penalties for breach, adverse publicity findings, and compliance audits. The FWC and Fair Work Ombudsman can investigate complaints and initiate enforcement proceedings. Unfair deactivation claims give workers a mechanism to challenge platform decisions that cut off their livelihood.
Understanding how this framework intersects with existing obligations under the Fair Work Act 2009, the NES, and modern awards is essential. Our team provides independent employment law advice for employers across all aspects of workforce management.
Frequently Asked Questions
The Fair Work Commission issued Australia’s first Minimum Standards Order for on-demand delivery workers, effective 17 August 2026. It sets minimum hourly pay rates from $31.30 to $32.00 depending on vehicle type, requires platforms to provide personal accident insurance, and establishes record-keeping, consultation, and dispute resolution obligations. The order covers food, drink, and grocery delivery workers engaged through digital platforms.
The Minimum Standards Order does not set maximum hour limits for delivery workers because it applies to employee-like contractors, not employees. Standard NES limits like the 38-hour ordinary week do not automatically apply. However, platforms still have work health and safety obligations to manage fatigue risks, and workers have a right to unpaid time off under the order.
Yes, from 17 August 2026, on-demand delivery workers must receive at least $31.30 per hour (bicycle or e-bike), $31.50 per hour (motorcycle or scooter), or $32.00 per hour (car). If a worker’s earnings for an earnings period of up to 21 days fall below the applicable minimum rate, the platform operator must make a top-up payment. These rates increase by $0.50 per hour from 1 January 2027 and are adjusted annually thereafter.
Delivery workers remain independent contractors under the Minimum Standards Order. The FWC used the term employee-like to acknowledge that while these workers share some characteristics with employees, they are not converting to employee status. However, the order introduces unfair deactivation protections, preventing platforms from terminating a worker’s access without a valid reason.
Platforms must organise and pay for personal accident insurance that provides a reasonable minimum level of cover for delivery workers. Workers remain responsible for maintaining third-party vehicle insurances. If a delivery worker causes damage to another vehicle, the platform is not liable for that cost. The specific level of cover is determined by the platform’s insurance arrangements, subject to the reasonableness standard in the order.
Platforms must maintain records of each worker’s earnings, hours engaged on the platform, and the calculations used to determine whether a top-up payment is required. Records must be retained for the period specified by the order and made available to the Fair Work Commission on request. Failure to keep adequate records exposes platforms to enforcement action.
The Minimum Standards Order applies regardless of existing contractual arrangements between platforms and workers. Any terms that provide less than the minimum standards are unenforceable to the extent of the shortfall. Platforms must review their contracts and payment structures to ensure compliance. Workers also have the right to be represented by a workplace delegate in discussions with the platform.
Platform operators that fail to pay the minimum rates or comply with the order face enforcement by the Fair Work Commission. This can include orders to make top-up payments to underpaid workers, penalties for breach of the order, adverse publicity findings, and compliance audits. Workers can also make unfair deactivation claims if a platform terminates their access for raising compliance concerns.
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Related Guides for Employers
→ Modern Awards Compliance→ HR Best Practice for Employers→ Payroll Compliance for Employers
