New Fair Work protections for employee-like workers

Recent updates to the Fair Work Act 2009 (Cth) have introduced stronger protections for workers in the gig economy and the road transport sector.

These reforms respond to concerns about unfair treatment, such as rideshare drivers suddenly losing access to apps or truck drivers being cut off from contracts without fair process.

Who’s covered?

Digital platform workers

This includes people working regularly (at least six months) via apps like Uber, DoorDash, Menulog, and similar platforms. These workers are covered if they:

Operate under a contract (not as direct employees), and
Meet at least two of the following criteria:
- Low bargaining power when negotiating contracts,
- Paid at or below employee-equivalent rates,
- Have little control over how they perform their work.

Road transport contractors

Protections also extend to contractors in the road transport industry who:

Perform all or most of their work under a services contract, and
Have worked consistently for at least six months.

Importantly, these protections apply only where the individual is not already engaged as an employee.

Unfair deactivation

For digital platform workers, deactivation means losing access to an app and therefore losing work opportunities. Under the new rules, workers can now challenge unfair deactivation through the Fair Work Commission (FWC).

The FWC will consider:

Whether there was a valid reason (e.g. related to conduct or capability),
Whether the correct procedures under the Digital Labour Platform Deactivation Code were followed,
Any other relevant circumstances.

Serious misconduct (as defined in the regulations) remains a valid reason for immediate removal and is not considered “unfair.”

The FWC may order:

Reactivation or reinstatement of a worker’s access to the platform,
Restoration of lost pay, where appropriate.

Eligibility depends on the worker earning below the contractor high-income threshold.

Unfair termination

Contractors in the road transport sector (for example, owner-drivers) now have similar rights. If their contract is unfairly terminated, they can seek a remedy from the FWC.

The FWC will assess whether the termination was:

Consistent with the Road Transport Industry Termination Code
Based on a valid reason
Carried out with appropriate process

The FWC may require:

The business to issue a new contract on the same terms
Payment for lost remuneration or compensation for losses caused by the termination

Why do these changes matter?

These new protections make it more difficult for digital platforms and transport companies to remove workers or end contracts without fair cause and process. They also reflect growing recognition of the unique challenges faced by gig workers and contractors. These are groups who have historically lacked the same job security as traditional employees.

For businesses, this means greater responsibility to document processes carefully and comply with new industry codes.

If you’d like to understand how these changes could impact your business operations or your work arrangements, our legal team can help. Please get in touch today.

This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your lawyer.