Commercial

On 17 August 2026, a new minimum standards interim order for some gig-economy workers became effective. The order details aspects of gig-economy work like minimum pay rates, dispute resolution guides, and, importantly, insurance.

Issued by the Fair Work Commission, the order applies to on-demand delivery work. It covers employee-like workers who are engaged through an app operated by a digital labour platform operator to pick up items from a business and deliver them to a customer. These items are mainly food, drinks, alcohol and groceries. The worker’s vehicle must not weigh more than a tonne for the order to apply.

History of the Gig-Economy

Platforms such as Uber Eats and DoorDash have contributed significantly to the growth of the gig economy. In 2019, just over 7 per cent of Australians were either working in the gig economy or had sought to participate in it. Recently published data by Uber Eats states that nearly one million delivery people have completed a delivery on the platform.

As the number of gig-economy workers has grown, so have questions about their employment rights. Historically, gig-economy workers, being independent contractors, have not been afforded injury compensation, minimum pay rates or enforceable dispute resolution pathways.

In Deliveroo Australia Pty Ltd v Diego Franco [2022] FWCFB 156, the Fair Work Commission Full Bench decided that Franco, a Deliveroo driver, was not afforded protection under the unfair dismissal regime. The Commission applied Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1, which sets out that in circumstances where parties have set out clear terms of their employment relationship in a written contract, provided the written contract is not challenged as a ‘sham’, it takes primacy in determining the relationship. The terms in the contract between Deliveroo and Franco were not suggestive of an employment relationship. Franco was an independent contractor.

Shortly after this decision, the Australian Parliament enacted the Closing Loopholes reforms, which expanded the Fair Work Commission’s powers. The reforms, which took effect between December 2023 and August 2025, introduced the label ‘employee-like’ to describe gig-workers.

Insurance Requirements

Foremost, the platform operator must, at their own expense, have a personal accident insurance policy. This policy must consist of a ‘reasonable minimum level’ of cover that reflects the work engaged in by the employee-like worker. It is expressly stated that this policy does not need to be at the level of cover equivalent to workers’ compensation schemes under Commonwealth or state/territory laws.

The extent of cover that will be required under ‘reasonable minimum level’ is not detailed further by the Fair Work Commission. However, through reading the published insurance policy of delivery giants like Uber and DoorDash, benefits can include a level of lost income, lump sum medical expense payments and reasonable expenses. Depending on the platform operator, workers may file a claim or report an incident through the app itself or using a specific portal.

The order issued by the Commission similarly mandates that workers must, at a minimum, have compulsory third-party (CTP) insurance for each vehicle used to provide services. The worker is responsible for informing their insurer of the use of the vehicle to provide delivery services.

It is important for workers to be aware that there is no double recovery for claims. This means that any benefit provided to a worker under the personal accident insurance policy is set off against entitlements under workers’ compensation or similar insurance scheme benefits.

What Workers Need to Know

For employee-like workers covered by the minimum standards order, there are both protections and obligations to be aware of. All drivers must have compulsory third-party (CTP) insurance and are now covered by a ‘reasonable minimum’ standard of personal accident insurance cover by platform operators.

Other than maintaining CTP, workers must handle vehicle repairs, licences, permits, and maintenance at their own expense. They must also pay fines or penalties imposed on them for a breach of the law. Workers are only exempt from paying a fine or penalty if it was incurred by following an ‘express direction’ of the platform operator.

Workers are entitled to minimum safety net rates too. The minimum rates commenced under the order and will be reviewed annually, with adjustments taking effect from 1 January 2028.

Likewise, the minimum standards order creates guidelines for the operation of workplace delegates in this context and clarifies the right to time away for workers. Workers may exercise their right to time away by choosing not to accept engagements.

What Platform Operators Need to Know

The minimum standards order is legally enforceable, meaning platform operators should act on their obligations. Platform operators must inform workers of significant changes as listed in clause 5 of the order. Operators must also inform workers if there is a detrimental change to their level of insurance coverage.

Moreover, the order outlines the process for dispute resolution between a platform operator and worker. The process applies unless the dispute concerns deactivation within Part 3A-3 of the Fair Work Act 2009:

1. There must be an attempt to resolve the dispute through the platform operator’s internal dispute resolution process and/or appeal process. The platform operator’s obligations are met under the dispute resolution clause if they seek to resolve the dispute via email, a digital platform, or via the application itself.
2. If the dispute remains unresolved after the first step, it may be referred to the Fair Work Commission. The Fair Work Commission may conduct mediation or conciliation, and provide an opinion and/or recommendation. Arbitration is a possibility if both parties agree to it.

A party to the dispute may appoint a representative.

The platform operator should similarly facilitate a platform feedback forum, maintain minimum record standards, and provide a provision of information statement. The statement template can be found in the minimum standards order.

Conclusion

The Fair Work Commission’s new minimum standards order represents a significant step in extending protections to employee-like workers in the on-demand delivery sector. While workers remain responsible for many costs, they now benefit from minimum pay rates, dispute resolution processes, and a baseline level of personal accident insurance. Both workers and platform operators should be aware of and act on their new obligations and rights to ensure compliance.

Whether you are a delivery worker unsure of your rights or a platform operator reviewing your obligations, our employment law and commercial law teams can help.