Kathmandu— Food and grocery delivery workers in Australia will receive a guaranteed minimum hourly wage of A$31.30 (approximately $22.11 USD) and be covered by on-the-job accident insurance following a recent decision by the Fair Work Commission (FWC). The new rules, announced Tuesday, apply to time spent actively engaged in deliveries – from accepting a job to its completion – and require companies to provide a minimum level of personal accident coverage. This ruling follows legislation passed in 2023 and 2024 granting the FWC authority to set standards for pay and insurance within the gig economy, and comes amid growing international efforts to improve conditions for these workers.

A Landmark Decision

The Transport Workers Union (TWU) hailed the FWC’s order as “a landmark moment for the Australian gig economy,” describing it as a “world-leading set of standards.” The minimum hourly rate exceeds Australia's national minimum wage of A$26.44, offering increased financial security to approximately 250,000 workers previously classified as independent contractors and often lacking traditional employee protections.

Key Provisions of the New Rules

The FWC’s order stipulates that the hourly rate will be paid for “engaged” time – specifically, the period between accepting a delivery job and completing it. While companies are required to provide personal accident insurance coverage, workers remain responsible for maintaining third-party vehicle insurance. The ruling aims to address longstanding concerns about the lack of rights and protections afforded to gig workers in Australia.

International Context and Momentum

The Australian decision follows a June agreement by the United Nations’ International Labour Organization (ILO) on a new global treaty focused on improving working conditions within the gig economy. Though ratification by individual governments is still required, the ILO treaty signals growing international recognition of the need to address challenges faced by gig workers. In Australia, the recent FWC order was enabled by legislation passed under the center-left Labor government in 2023 and 2024.

The new rules will take effect on August 17th, marking a significant shift in labor standards for Australia’s growing gig economy.

(With inputs from DW)

Originally published on abcnews.com.np.