Australia’s First On-Demand Delivery Worker Minimum Standards Order
Australia’s first Fair Work Commission minimum standards order took effect on 17 August 2026.
The Interim On-Demand Delivery Employee-like Worker Minimum Standards Order sets legally enforceable pay and working standards for certain independent contractors delivering food, beverages, alcohol and groceries through digital platforms.
Covered platform operators must calculate an earnings floor using each worker’s engaged time and the applicable vehicle rate. They may need to make a top-up payment where earnings fall below that floor.
The order also establishes requirements for information sharing, insurance, recordkeeping, consultation, platform feedback, time away, workplace delegates and dispute resolution.
The Fair Work Ombudsman published its detailed guidance on 18 August 2026.
What Is the On-Demand Delivery Minimum Standards Order?
The Interim On-Demand Delivery Employee-like Worker Minimum Standards Order is a legally enforceable Fair Work Commission order setting minimum pay and conditions for covered gig-economy delivery contractors and digital labour platform operators.
It is the first minimum standards order issued under the Fair Work Act framework for regulated workers.
The order was made on 11 August 2026 and commenced on 17 August 2026. It followed consultation conducted through Fair Work Commission case MS2024/3.
The Fair Work Commission announcement confirms that the order is interim and may be reviewed as related last-mile delivery cases progress.
Who Does the Order Cover?
The order covers employee-like workers engaged through an application operated by a digital labour platform where their work across an earnings period predominantly involves collecting and delivering:
- Food
- Beverages
- Liquor
- Grocery items
The items must be:
- Ordered through an app, website or online system
- Collected from the business offering them for sale
- Delivered immediately or as soon as practicable after the engagement is accepted
The order also covers the digital labour platform operators that engage these workers.
Services involving a vehicle with a carrying capacity exceeding one tonne fall outside the order. Employees delivering for a supermarket also fall outside this employee-like worker framework because their employment conditions arise under employee laws and applicable industrial instruments.
Package delivery work falls outside this particular order where the worker’s activities do not predominantly involve consumables or groceries.
What Are the Minimum Pay Rates?
The minimum safety-net rates from 17 August to 31 December 2026 are:
| Vehicle class | Minimum hourly rate |
|---|---|
| No vehicle or pedal-powered bicycle | $31.30 |
| Electric bicycle or scooter | $31.30 |
| Combustion motorcycle or scooter | $31.50 |
| Electric or combustion car or van with capacity up to one tonne | $32.00 |
The rates increase from 1 January 2027:
| Vehicle class | Minimum hourly rate |
|---|---|
| No vehicle or pedal-powered bicycle | $31.80 |
| Electric bicycle or scooter | $31.80 |
| Combustion motorcycle or scooter | $32.00 |
| Electric or combustion car or van with capacity up to one tonne | $32.50 |
Annual adjustment begins from 1 January 2028 using the preceding National Minimum Wage increase, subject to any separate Fair Work Commission variation.
These rates create an earnings floor for engaged time. They do not convert the covered workers into employees or create employee leave, overtime and penalty entitlements.
The rates and adjustment mechanism appear in the Fair Work Commission’s order.
How Is the Earnings Floor Calculated?
The earnings floor equals the worker’s total engaged time during the earnings period multiplied by the applicable hourly rate.
A platform operator can set an earnings period of up to 21 days.
Where a worker’s earnings fall below the floor, the platform operator must pay the difference:
- In the next earnings period, or
- Within seven days after the next earnings period
For example, a worker using a car records 10 hours of engaged time between 17 August and 31 December 2026. The applicable earnings floor is $320. If their eligible earnings for that period total $290, the platform operator owes a $30 top-up.
What Is Engaged Time?
Engaged time generally begins when a worker accepts an engagement and ends when the engagement is completed, as recorded by the application.
Where the worker is already completing another engagement, the new engagement’s time starts after the earlier engagement ends. A bundled engagement can include several orders or deliveries.
Specific exclusions can apply, including:
- Time following a notified customer cancellation, subject to required return duties
- Time linked to an abandoned engagement
- Time lost through breakdowns, accidents or events outside the platform operator’s control
- Breaks
- Certain unreasonable delays, routes or unrelated stops
- Time after a worker fails to mark a completed engagement as complete
The order establishes a notification process before some alleged non-engaged time can be excluded. Platform operators should retain the evidence supporting each decision and provide the required notices through the application where appropriate.
The worker must also receive the total alleged non-engaged time for each earnings period before that period ends.
What Information Must Accompany an Engagement Request?
Every engagement request must provide:
- The collection business’s name and location
- An indication of bulky items or alcohol
- The approximate delivery location
- The estimated minimum delivery fee
- The estimated completion time
This information helps the worker decide whether to accept the engagement and gives the platform a consistent record of what was presented.
A platform may maintain reasonable minimum acceptance rates and minimum rates for avoiding cancellations after acceptance where these controls support the proper operation of its marketplace.
What Is the Gig Worker Information Statement?
The Gig Worker Information Statement explains the order and its principal rights and responsibilities to covered workers.
A platform operator must provide the statement:
- Before the worker’s first engagement or as soon as practicable afterwards
- By email
- Through an in-app notification
Existing covered workers who had yet to receive the statement when the order commenced must receive it as soon as practicable.
The statement must be issued again following a material variation to the order, including a change to safety-net rates. The order does not require a worker acknowledgement before work begins.
Platforms should retain evidence of email and in-app distribution as part of their broader compliance records.
Who Pays Vehicle and Insurance Costs?
The worker is responsible for acquiring, maintaining and repairing their vehicle.
The worker also pays:
- Vehicle registration
- Fuel
- Maintenance and parts
- Purchase or lease costs
- Relevant administrative costs
- Licences and permits
- Eligibility checks required by the platform
- Compulsory third-party vehicle insurance
The worker must tell the insurer that the vehicle is being used to provide delivery services and satisfy the insurer’s requirements.
The digital labour platform operator must fund and maintain personal accident insurance providing a reasonable minimum level of cover that reflects work conducted through the application.
A detrimental change to the insurance coverage triggers consultation with affected workers under the significant-change procedure.
What Records Must Platform Operators Keep?
Platform operators must keep prescribed records for seven years.
Required records include:
- Platform operator name and ABN
- Worker name and ABN, where applicable
- Account activation date
- Services contracts
- Gross and net payments for every earnings period
- Deductions
- Excluded non-engaged time
- Aggregate engaged hours, calculated to the nearest minute
- Account deactivation date
- Reasons for deactivation or contract termination
At the end of each earnings period, workers must receive information about:
- Gross and net payments
- Deductions and excluded time
- Total engaged hours
A worker or representative can request copies of the prescribed records.
Record design should allow the platform to reconstruct each earnings-floor calculation, including vehicle class, engaged time, exclusions, payments and top-ups.
What Consultation Is Required for Significant Changes?
A platform operator must consult affected workers after making a definite decision concerning specified significant changes.
The covered decisions include:
- Exiting a market
- Ending a category of delivery or fulfilment service in Australia
- Changing eligible vehicle classes in specified circumstances
- Permanently changing platform operating hours in a particular area
Where the decision is likely to significantly reduce or eliminate engagement opportunities, the platform must:
- Provide written notice as soon as practicable
- Explain the expected effect
- Give affected workers or representatives a reasonable opportunity to provide feedback
- Give genuine consideration to the feedback at an aggregate level
Affected workers generally include people who provided services during the preceding three calendar months and whose accounts remain active when notice is issued.
The platform can protect confidential and commercially sensitive information, including algorithmic information.
What Is the Platform Feedback Forum?
Each covered platform operator must establish a platform feedback forum.
The forum provides a channel for discussion about significant and general matters affecting workers. It contains representatives of the platform operator, workplace delegates and a union official.
The forum must meet four times each calendar year. Meetings generally occur virtually, with reasonable notice and an opportunity for attendees to submit agenda items.
The forum supports discussion and feedback. The platform operator retains responsibility for operational decisions and must respond to matters raised during meetings.
Do Workers Have a Right to Time Away?
Covered workers determine whether and when to accept engagements.
A worker can take unpaid time away from the platform by declining engagements. This is unpaid time because the worker is an independent contractor.
The platform may operate reasonable acceptance and post-acceptance cancellation controls that support marketplace operation.
Platform terms, performance processes and automated account controls should be reviewed to confirm that they recognise the order’s right-to-time-away provision.
How Are Disputes Managed?
A dispute about compliance with the order should first proceed through the platform operator’s internal resolution or appeal process.
Where the dispute remains unresolved after those steps, either party can refer it to the Fair Work Commission for:
- Mediation
- Conciliation
- An opinion
- A recommendation
Arbitration can occur where both parties agree.
A worker may appoint a union, lawyer, paid agent or other representative during the dispute process.
Disputes concerning deactivation can fall within separate Fair Work Act processes, so platform procedures should identify the correct pathway.
How Does the Order Interact With State Legislation?
For services covered by the order, specified state contractor provisions cease to apply to the worker and platform operator in relation to those services.
The listed provisions are:
- Chapter 6 of the Industrial Relations Act 1996 in New South Wales
- The Owner Drivers and Forestry Contractors Act 2005 in Victoria
- Chapter 10A of the Industrial Relations Act 2016 in Queensland
- The Owner-Drivers (Contracts and Disputes) Act 2007 in Western Australia
This interaction is limited to services covered by the federal order. Platforms facilitating several service categories may need to assess each category separately.
Applicable WHS, road safety, privacy, insurance and other laws continue to require separate consideration.
What Happens if a Platform Breaches the Order?
Compliance with the minimum standards order is mandatory.
The Fair Work Ombudsman can advise on, monitor and enforce the order. Courts can impose penalties on businesses, individuals and other persons for breaches.
Potential compliance risks include:
- Incorrect coverage decisions
- Missing top-up payments
- Inaccurate engaged-time records
- Failure to provide required information
- Inadequate personal accident insurance
- Missing consultation
- Failure to establish a feedback forum
- Incomplete seven-year records
- Deficient dispute-resolution processes
The Fair Work Ombudsman confirmed the commencement and minimum rates in its 17 August 2026 media release.
On-Demand Delivery Compliance Checklist
Coverage
- Identify covered applications.
- Map consumable and grocery delivery services.
- Confirm employee-like worker status.
- Record vehicle carrying capacity.
- Separate other delivery categories.
Payments
- Assign the correct vehicle rate.
- Capture engaged time to the nearest minute.
- Define earnings periods of up to 21 days.
- Calculate the earnings floor.
- Make required top-up payments.
- Schedule the 1 January 2027 rate increase.
Worker information
- Update engagement-request fields.
- Issue the Gig Worker Information Statement.
- Provide earnings-period information.
- Explain vehicle and insurance responsibilities.
- Communicate dispute procedures.
Governance
- Maintain seven-year records.
- Establish the platform feedback forum.
- Create a significant-change consultation process.
- Review time-away and acceptance settings.
- Check personal accident insurance.
- Audit deductions and excluded time.
What Other Delivery Standards Are Under Consideration?
The Fair Work Commission is considering related applications concerning employee-like workers and regulated road transport contractors performing last-mile delivery work.
Submissions responding to proposed orders are due on 21 August 2026. Hearings concerning whether the Commission should issue notices of intent are scheduled for 25 and 26 August 2026.
The Commission has stated that the on-demand delivery order will be reviewed if it issues a notice of intent and draft order in either related case.
Current information is available through the Commission’s MS2024/1-3 major-case page.
How WorkPro Supports Contractor Readiness
Payment calculations and platform engagement data remain within the operator’s delivery and payment systems. WorkPro can support adjacent contractor screening, onboarding, training and credential controls.
Organisations can use WorkPro to:
- Structure onboarding by worker and vehicle type
- Verify work rights
- Collect driver licences and other credentials
- Monitor document expiry
- Distribute policies and safety information
- Assign transport and working-alone learning
- Record completion and acknowledgement
- Maintain central compliance records
- Report workforce readiness across locations
These controls can help platform and delivery businesses connect worker activation with confirmed identity, credentials, learning and policy requirements.
Relevant resources include WorkPro’s supply-chain compliance solutions and our guide to contractor compliance risks in freight and transport.
Conclusion
The first minimum standards order for on-demand delivery work creates immediate obligations for covered digital platforms.
Since 17 August 2026, operators have needed to apply vehicle-based earnings floors, calculate engaged time, make top-up payments and satisfy information, insurance, recordkeeping and consultation requirements.
The order also signals continuing development of regulated-worker standards. Related last-mile delivery proceedings may expand the compliance framework across additional delivery models.
Frequently Asked Questions
When did the minimum standards order commence?
The order commenced on 17 August 2026.
Is the order legally enforceable?
Yes. It is a legally enforceable Fair Work Commission minimum standards order. Courts can impose penalties for breaches.
Which delivery workers are covered?
It covers employee-like workers engaged through digital platforms who predominantly provide immediate delivery of food, beverages, alcohol or groceries.
What is the minimum hourly rate?
From 17 August to 31 December 2026, rates range from $31.30 to $32.00 according to vehicle class.
Are workers paid for all time logged into an app?
The earnings floor uses engaged time. This generally runs from acceptance to completion of an engagement, subject to the exclusions and notification rules in the order.
How long can an earnings period be?
A platform operator can set an earnings period of up to 21 days.
When is a top-up payment due?
The top-up must be paid during the next earnings period or within seven days after that period.
How long must records be retained?
Platform operators must retain the prescribed records for seven years.
Are workers entitled to paid leave?
The covered workers remain independent contractors. The order provides a right to unpaid time away through declining engagements.
Will the rates change?
The first scheduled increase applies on 1 January 2027. Annual adjustment begins from 1 January 2028, subject to Fair Work Commission decisions.














