The gig economy in Australia just reached a major turning point. Uber Eats, DoorDash and the Transport Workers Union (TWU) have struck a landmark national agreement aimed at setting minimum pay, safety standards and essential protections for delivery workers. It’s one of the most significant changes ever seen in the on-demand delivery sector, and it has the potential to influence future workplace laws, platform models and worker expectations.

This article breaks down exactly what the deal includes, why it matters, who it affects and what businesses and workers should expect next.

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Quick Summary of the New Gig Worker Agreement

• New agreement sets minimum safety-net pay rates for delivery workers.
• Includes platform-funded accident insurance and dispute-resolution processes.
• Could raise average pay to around A$32/hour, pending Fair Work Commission approval.
• Represents a major shift in how gig-economy workers may be treated nationwide.

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What Is the Landmark Gig Worker Deal About?

In November 2025, the TWU, Uber Eats and DoorDash announced a historic agreement that outlines minimum standards for gig-economy delivery workers. According to ABC News, the proposed framework introduces minimum pay rates, improved safety measures and the right to representation for workers. These standards are the first of their kind for major delivery platforms in Australia.

While Uber Eats and DoorDash have previously taken steps to improve safety and support, this agreement marks the first time they have formally committed to industry-wide minimum protections developed in collaboration with a major union.

This deal is not yet in effect — it still requires approval by the Fair Work Commission — but its introduction alone signals a clear shift in the way gig work is regulated and valued.

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What’s Included in the New Gig Worker Agreement?

1. Minimum Safety-Net Pay Standards

Pay transparency and predictability have been long-standing concerns for delivery workers. As per ABC News, draft standards within the agreement suggest earnings could rise to around A$32 per hour, depending on job type and specific conditions.

These minimum rates could:

• Reduce excessive unpaid waiting time
• Stabilise income for full-time and part-time gig workers
• Offer more consistent earning expectations

This would be one of the first moves away from the traditional “per-delivery” earnings model towards a more balanced hourly-based safety-net structure.

2. Platform-Funded Accident Insurance

Gig work often exposes riders to higher physical risks, especially those using bikes, scooters or motorcycles. According to Insurance Business Australia, the agreement requires platforms to provide mandatory accident insurance, fully funded by the companies.

This includes coverage for:

• Income loss after injury
• Medical expenses
• Disability or serious injury support

This is a huge improvement compared to the past, when workers were largely responsible for arranging their own insurance or had no coverage at all.

3. Clear Dispute-Resolution Pathways

Historically, workers have struggled to appeal unfair account deactivations or resolve payment disputes. The new framework provides:

• Independent dispute processes
• Clear rights to representation
• Transparent communication between worker and platform

This removes the “black box” problem where drivers or riders were sometimes unable to challenge unfair decisions.

4. Union Representation Rights

Workers will have the explicit right to representation from the Transport Workers Union for disputes, negotiations and workplace safety concerns. For a sector that has historically been highly decentralised and independent, this is a major structural change.

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Why the Deal Matters for Delivery Workers

This agreement has the potential to dramatically reshape the working lives of thousands of gig workers across Australia. The most significant benefits include:

More Predictable Earnings

Instead of relying entirely on fluctuating per-delivery rates, workers may receive consistent baseline pay that offers financial stability.

Better Safety and Well-Being

Accident insurance reduces worker risk, providing peace of mind during high-risk shifts such as late-night deliveries or extreme weather conditions.

Fairer Dispute Processes

Workers gain the ability to challenge account deactivations or unfair conditions instead of losing access to income overnight.

Stronger Voice in Industry Decisions

Union representation means workers are no longer isolated individuals negotiating with multibillion-dollar platforms.

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What This Means for Businesses Using Delivery Platforms

If you’re a restaurant or retailer that relies on Uber Eats or DoorDash, this deal will likely lead to operational adjustments. Some potential impacts include:

1. Increased Delivery Fees

Higher pay and insurance costs may be passed on in part to consumers or merchants. While not guaranteed, similar policy changes overseas have led to modest fee increases.

2. Improved Worker Retention

More fair pay and safer conditions could lead to better retention, reducing delays, cancellations and inconsistent delivery supply.

3. More Professional Workforce

As gig work becomes more structured, businesses may see greater consistency in delivery quality and timeframes.

4. Regulatory Pressure on All Platforms

If adopted, competitors may need to mirror similar standards. This would bring greater uniformity across the entire delivery sector in Australia.

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How Will This Affect Consumers?

Although the deal prioritises worker protections, end users may see some effects, including:

• Slight increases in delivery fees or service charges
• More consistent delivery times
• Reduced worker turnover, meaning better overall service reliability

Consumers may also view platforms more positively knowing workers receive fairer compensation and protections.

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What Happens Next?

The agreement must now be reviewed by the Fair Work Commission, which will determine whether the standards become enforceable across the industry.

Key milestones to watch include:

• FWC’s approval timeline
• Details of the final minimum pay model
• Implementation plans by Uber Eats and DoorDash
• Flow-on effects for rideshare services like UberX

This deal could set the foundation for broader gig-worker reforms in Australia, including those involving rideshare drivers, task-based freelancers and on-demand service workers.

Frequently Asked Questions

1. Will the new gig-worker standards apply to rideshare drivers too?

Not immediately. This agreement currently focuses on delivery workers for Uber Eats and DoorDash. However, the outcome may influence future negotiations or regulations affecting Uber rideshare drivers.

2. Will delivery prices increase because of this agreement?

Possibly. Higher worker protections often lead to higher operational costs, which platforms may pass on to consumers. However, improved delivery reliability can offset these changes for many users.

3. When will the new pay rates come into effect?

The final timeline depends on Fair Work Commission approval. Once approved, platforms will need time to redesign pay models, insurance systems and worker support channels.