A major new law has established minimum workplace entitlements for gig economy workers. These minimum standards (MSOs) cover employee-like workers who perform on-demand delivery work through digital platforms and commenced on 17 August 2026.
Who are on-demand delivery workers?
Employee-like workers are generally independent contractors who use a vehicle, such as a car, motorcycle or bicycle, to deliver items to customers through a platform. The Order provides important minimum protections and entitlements for eligible workers and obligations for digital labour platform operators.
What does this mean for employers?
If businesses engage on-demand delivery drivers through a digital platform, such as an app or website, it’s important to keep in mind that new minimum standards now apply, including minimum pay rates and stronger protections relating to insurance and working conditions.
Key changes include a minimum pay rate of at least $31.30 per hour, clearer rules around vehicle expenses, and mandatory insurance and record keeping requirements.
Workers also have new rights, including access to dispute resolution processes, workplace delegate rights, unpaid leave options, and consultation on major platform changes. Businesses must also provide all workers with the official Gig Worker Information Statement (located in Schedule A of the MSO) before they start work.
While the order remains interim and may be subject to future Fair Work Commission review, it is currently legally binding, and businesses should ensure they are meeting the new requirements.
For more information, refer to our On-Demand Delivery and Employee-Like Worker fact sheet.
Why is this significant?
The rise of the gig economy during the 2010s led to the emergence of a new category of workers engaged through digital labour platforms such as Uber, Deliveroo and DoorDash. Although these platforms created new opportunities for flexible work, many workers operated with limited workplace protections because they were generally classified as independent contractors rather than employees.
In response to concerns about pay, safety and working conditions in the gig economy, the Australian Government introduced the Closing Loopholes reforms. These reforms established the concept of "employee-like workers" and provided the Fair Work Commission with the power to set minimum standards and protections for eligible gig workers.
Against this backdrop, the Fair Work Commission's new Minimum Standards Order represents a significant development in the regulation of gig work. The Order gives practical effect to the Closing Loopholes reforms by establishing enforceable minimum standards for eligible employee-like workers in the on-demand delivery sector.
With workplace laws constantly evolving and compliance obligations becoming increasingly complex, staying up to date can be a challenge for busy business owners. That's where Peninsula can help, providing expert guidance and support 24/7 to help you navigate compliance and focus on running your business.
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