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Agreement mandates baseline hourly rate, dispute resolution processes, clearer job information, and mandatory accident insurance
Maroosha MuzaffarTuesday 25 November 2025 12:20 GMTComments
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Australian gig workers could earn better pay and improved working conditions after the nation’s two biggest food delivery services struck a landmark deal with a leading labour union.
A joint submission filed with the Fair Work Commission on Tuesday by DoorDash, Uber Eats and the Transport Workers’ Union lays out “enforceable conditions” for delivery riders and drivers, including a baseline hourly rate, new dispute resolution processes, clearer job information, and mandatory accident insurance.
The deal, if approved, would be a milestone. It would cover not just Uber Eats and DoorDash couriers, but extend across the entire food delivery industry, including platforms like Hungry Panda. It could also pave the way for similar standards in other gig economy sectors, from rideshare drivers to carers hired through online platforms.
The proposal lands at a pivotal moment: rival platform Menulog closes its Australian operations on 26 November, redirecting customers and eateries to new owner Uber Eats and consolidating a market already dominated by the two US giants.
Under the draft framework, gig couriers would earn at least A$31.30 ($20.19) an hour, in line with the Australian minimum casual wage. This represents roughly a 25 per cent boost for many riders who are currently paid by the job rather than the hour.
open image in galleryFile. Proposed deal will cover not just Uber Eats and DoorDash but other food delivery services like Hungry Panda (Jon Super/PA Wire)The standards would also guarantee access to work records, improve engagement processes and mandate accident insurance, a crucial safeguard in a sector that has seen at least 18 delivery workers die since 2017.
“For too long gig workers fell through the cracks,” employment minister Amanda Rishworth said in a statement.
“We didn’t think it was fair that these workers missed out on minimum standards and had to rely on tips to survive. That’s not the Australian way.”
Michael Kaine, national secretary of the Transport Workers’ Union, told a press conference that the draft framework was “a world-first set of conditions for gig workers performing this work and it will result in life-transforming wage increases”.
“Gig workers have campaigned for years for a better industry and, for the first time in the world, there could be a minimum floor that represents a life-changing increase to their pay,” he said.
“After constructive discussions with Uber Eats and DoorDash, this is a significant step towards a fairer gig economy,” he added.
“Until this point in time, and even as we speak today, there are swathes of workers in the gig economy that are being paid below the minimum national wage.”
Worker advocates say higher, guaranteed pay could reduce the pressure on riders to take risks in traffic or work through exhaustion.
Canberra courier Utsav Bhattarai told Tuesday’s press conference that many workers pushed themselves into unsafe conditions just to pay the bills. “Just one more order, one more hour, just need to keep going, that is the condition that these drivers were living under,” he said, according to Reuters.
“The change that we’re seeing now, it is massive.”
open image in galleryFile. A food delivery rider waits for the traffic light to change (AP)The companies behind the proposal insist the changes won’t raise customer prices dramatically. With Menulog’s market exit opening room for growth, Uber Eats and DoorDash are betting that fairer standards can coexist with competitive delivery fees.
“Delivery workers keep Australia moving, helping busy households and supporting small businesses,” Simon Rossi, vice president of DoorDash in the Asia Pacific, said. “This proposal shows that we can work together to lift standards and still enable the flexibility people rely on, under the government’s new laws.”
Melbourne delivery rider Eric Ireland welcomed the proposed changes. “It is going to make a huge difference,” he told the ABC. “Especially for the down times when you’ve got to the restaurant and you’re waiting for the order. It will make it more relaxing and less frustrating.”
Ed Kitchen, managing director of Uber Eats for Australia and New Zealand, described the arrangement as a modernisation of on-demand work. The agreement, he said, was a “meaningful step towards building modern laws for modern forms of work” and gave delivery workers protection, security and flexibility.
“We believe fair standards and flexibility should not be mutually exclusive,” he said.
If the Fair Work Commission endorses the new deal, it will go into effect next July.
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