What gig workers should expect from new legal reforms in Australia is a fundamental shift from a largely unregulated “frontier” market to a structured system of “employee-like” protections.
As the digital economy matures, the federal government has introduced the Closing Loopholes legislation to ensure that those who work through apps are no longer left without a safety net.
These reforms are designed to bridge the gap between traditional employment and independent contracting.
According to the Fair Work Ombudsman, a new category of “employee-like workers” now exists, granting the Fair Work Commission (FWC) the power to set binding minimum standards for those using digital platforms.
For the hundreds of thousands of Australians delivering food or providing rideshare services, these changes represent the most significant update to industrial relations in decades.
Understanding these new rights is the first step toward ensuring you are being treated fairly by the platforms that facilitate your income.
The Concept of the “Employee-Like” Worker
The core of the recent reform is the legal definition of an employee-like worker. This category covers individuals who are technically independent contractors but perform work under conditions similar to employees.
To qualify, a worker generally needs to meet at least two criteria, such as having low bargaining power, receiving low pay relative to employees, or having little authority over how their work is performed.
This distinction is vital because it allows the FWC to intervene in the relationship between the worker and the platform. Previously, platforms had total discretion over pay and conditions.
Now, the Department of Employment and Workplace Relations oversees the implementation of standards that reflect the reality of modern gig work while preserving the flexibility many workers value.
Protections Against Unfair Deactivation
Perhaps the most practical change for gig workers is the new protection against unfair deactivation. Historically, an app could “deactivate” a worker’s account instantly and without a clear reason, effectively terminating their livelihood.
Since February 2025, a new Deactivation Code has mandated that platforms provide valid reasons and a fair process before removing a worker from their system.
If a worker is deactivated unfairly, they now have 21 days to lodge a claim with the Fair Work Commission. The Commission has the power to order the “reactivation” of the account and, in some cases, lost earnings.
This oversight ensures that digital platform operators act with the same procedural fairness required of traditional employers when dismissing staff.
Minimum Standards and Pay Rates
The Fair Work Commission can now issue Minimum Standards Orders (MSOs) that act like awards for the gig economy. These orders can cover a variety of workplace matters including payment terms, insurance, and record-keeping requirements.
For example, Business NSW notes that the FWC is currently reviewing applications to establish minimum pay rates for delivery drivers to ensure they recover their costs for fuel, vehicle maintenance, and labour.
While these standards do not turn gig workers into full-time employees with leave entitlements, they do create a “floor” for earnings. This prevents a “race to the bottom” where platforms compete by slashing worker pay. It also ensures that workers are compensated for the hidden costs of running a vehicle or providing their own equipment.
Collective Bargaining and Representation
For the first time, gig workers have the right to bargain collectively. This means that groups of workers, often represented by unions, can negotiate directly with platform operators to create a collective agreement.
These agreements can set higher standards than the minimum orders and can address specific issues like safety protocols or algorithm transparency.
Furthermore, workplace delegates now have enhanced rights to represent gig workers. This allows for better communication between workers and the platform regarding safety concerns or systemic issues with the app.
By empowering workers to speak as a collective, the law aims to balance the scales in an industry where individual workers previously had zero influence over their working conditions.
Criminalising Wage Theft
A significant component of the broader legal reforms is the criminalisation of intentional wage theft. From January 2025, employers and platform operators who intentionally underpay their workers can face severe criminal penalties, including prison sentences and multi-million dollar fines.
This serves as a powerful deterrent against companies that might try to bypass the new minimum standards.
The Australian Government has made it clear that while honest mistakes will be handled through civil channels, deliberate exploitation will be met with the full force of the law. This provides gig workers with a level of protection that was previously reserved only for those in traditional salaried roles.
What Gig Workers Should Do Now
With these laws now in effect, it is important for gig workers to maintain thorough records of their work history and earnings. Because eligibility for many of these protections depends on having worked regularly for at least six months, keeping track of your active hours and correspondence with the platform is essential.
If you believe your pay is below the newly established minimums or you have been deactivated without a valid reason, you should seek advice immediately. The 21-day window for deactivation claims is strict, and missing this deadline can result in losing your right to a remedy. Being proactive is the best way to benefit from these landmark reforms.
Conclusion
What gig workers should expect from new legal reforms is a more stable and predictable environment in which to earn a living.
The transition to a regulated gig economy will likely involve some growing pains as platforms adjust their business models, but the ultimate goal is a fairer marketplace that rewards hard work without sacrificing basic human rights.
If you are unsure how these changes affect your specific situation, it is wise to consult with a specialist in Australian industrial relations. For more insights on workplace rights and gig economy reforms, visit our 10 Best Employment Lawyers in Australia.
Staying informed will ensure you are ready to exercise your new rights as they continue to roll out across the country.
FAQs
1. What qualifies as a “valid reason” for deactivation under the new code?
Valid reasons typically include serious misconduct, such as fraud, dishonesty, or compromising the safety of others. Failing to maintain a required driver’s license or consistently failing to meet reasonable performance metrics can also be considered valid reasons.
2. Can I still work for multiple apps at the same time?
Yes, the new reforms do not prevent you from “multi-apping.” You remain an independent contractor and retain the flexibility to choose when and where you work across different digital platforms.
3. Do these laws apply to freelancers on sites like Upwork or Fiverr?
The current focus of the “employee-like” worker classification is primarily on platforms that facilitate physical work, such as delivery and rideshare. However, the FWC has the power to expand these standards to other sectors if they meet the “employee-like” criteria.
4. Will these reforms make rideshare and delivery more expensive for customers?
While the platforms may face higher operational costs due to minimum pay and insurance requirements, the reforms are designed to ensure that these services are sustainable and that workers are not subsidising low consumer prices through unpaid labour.
5. How do I check if a Minimum Standards Order applies to me?
You can check the Fair Work Commission website for any active or pending MSOs related to your specific industry. Most platforms are also required to notify their workers when new binding standards come into effect.