In the midst of the COVID lockdown, an admission was made in a workers compensation claim which could have far reaching effects for the ever-increasing gig economy. The RMB Compensation Division explains:
The gig economy is a growing part of Australia’s workforce. Gig workers such as food deliverers are engaged by or access work through an app or website produced or managed by the platform owner who may not be the worker’s employer.
People most likely to participate in the food delivery gig economy include younger people, males, students, recent migrants, temporary residents and those who speak a language other than English.
The COVID pandemic has significantly impacted the economy and workforce, resulting in many people losing their jobs and seeking alternative income through the gig economy.
Gig economy workers and their families are usually considered to be independent contractors rather than employees, so have no entitlement to benefits such as workers compensation, annual leave and sick leave.
In the latter part of 2020, five food delivery drivers tragically died in Australia while engaged in the gig economy. On 29 September 2020, a Hungry Panda delivery driver died after being struck by a bus while riding his motorcycle in Sydney while delivering food.
The man’s family made a claim for compensation under NSW legislation. If classified as an employee, the dependants of a deceased worker would be entitled to a lump sum payment of over $800,000 and weekly payments of compensation for dependants until at least the age of 16.
In the particular circumstances of this case, the workers compensation insurer accepted that the delivery worker died of injuries sustained during the course of his employment. His family was therefore entitled to workers compensation benefits.
In the Hungry Panda case the insurance company accepted the delivery driver’s employment status. However, that is not always the case. While it is a pleasing development, there has still been no definitive judicial consideration of whether people providing food delivery gig economy services are workers for the purposes of the workers compensation scheme in NSW.
None of the top five gig platforms used in Australia has a statutory workers compensation policy covering the people providing food delivery gig economy services in NSW. Some platforms make available private insurance products.
Gig workers should ensure they inquire into their workers compensation rights and entitlements, as they will differ according to their particular working arrangements and the relevant workers compensation scheme. If you have any questions or concerns if you or your family member are a gig worker, your first step should be to contact our office to arrange a free consultation. You can contact us by by phone or our 'Ask a Question' tool on our website.