Australia is poised to deliver a global first for gig-economy workers through a proposed agreement between the two largest food-delivery platforms, Uber Eats and DoorDash, and the Transport Workers’ Union (TWU).

The companies and union jointly submitted an application to the Fair Work Commission (FWC) to establish minimum standards including a safety-net hourly rate of A$31.30 starting on 1 July 2026, with a modest rise from 1 January 2027.

Under the draft deal, driving or cycling deliveries of food across all vehicle types would earn the new hourly floor.

Workers would also gain access to dispute-resolution mechanisms, representation rights, and mandatory personal accident insurance provided by the platforms.

The TWU emphasised the safety cover is vital: since 2017 at least 23 gig workers have died on Australian roads while delivering, and the union regards this deal as a pathway to closing longstanding protection gaps.

While the safety-net rate marks a roughly 25 per cent increase for many couriers still paid per-job, the agreement stops short of treating delivery drivers as employees; the parties have agreed to designate them as “employee-like” and excluded idle time between jobs from the hourly rate calculation.

That means that hours spent waiting for assignments will not necessarily trigger application of the A$31.30 rate.

The terms also require drivers to maintain third-party vehicle insurance, while the platforms must supply the accident-insurance cover for the individual.

Workers say the new arrangement will offer greater income certainty and risk protection.

One Melbourne courier reported earning about A$22 per hour before vehicle costs and welcomed the clarity of a guaranteed rate.

Companies are yet to specify how they will absorb the higher operating cost, but analysts expect some pass-through to consumers in higher delivery fees, though platforms may also squeeze restaurant margins or absorb part of the difference to remain competitive.

Experts describe the agreement as “world-leading”, noting it could offer a new blueprint for regulating the gig economy.

However, the FWC still needs to approve the application, and a key issue remains whether delivery workers could be found, instead, to be employees — a finding that could prompt far-reaching legal and financial consequences for platforms.

If the commission were to reclassify workers as full employees, significant entitlements such as superannuation and leave could apply, opening the door to High Court challenges.

Regardless of classification, the deal moves Australia significantly closer to a safety-net for one subset of gig workers and may influence future minimum-standard applications alongside other sectors such as rideshare and package-delivery platforms.

The next step is FWC hearings and consultation, after which the new arrangements will take effect if approved on schedule.