Modern Australian
Men's Weekly

.

Did somebody say workers' rights? Three big questions about Menulog's employment plan

  • Written by Tom Barratt, Lecturer, Centre for Work + Wellbeing, Edith Cowan University

Menulog, Australia’s second-largest food ordering and delivery platform, has declared it will break with the standard “gig platform” business model and engage some of its couriers as employees, not independent contractors.

We owe it to our couriers,” Menulog’s managing director Morten Belling told the Senate Select Committee inquiry into job security this week. The inquiry is investigating the scope of insecure or precarious employment in Australia.

The Transport Workers’ Union says Menulog’s move is a “watershed moment for the gig economy”. By committing to pay couriers a minimum wage and superannuation, it is going further than its competitors such as UberEats and Deliveroo.

But let’s not get too excited yet.

What Menulog has announced is just a pilot program, offering employment to some couriers in Sydney’s CBD. How much of an overall benefit it makes even to those workers will depend on the details.

Work can still be insecure and poorly paid even when a worker is “employed”. Just ask many casual employees in the hospitality, horticulture and retail sectors.

Accepting greater responsibility

To give Menulog credit, the company isn’t legally obliged to make this change.

The prevailing independent contractor model, paying workers “piece” rates with no benefits such as superannuation and paid leave, is controversial yet thus far legal – even though it means many earn less than the minimum wage.

In engaging couriers as employees, Menulog is accepting greater responsibility for their welfare. Things like insurance and workers compensation become straightforward. As contractors, already lowly paid workers are often responsible for their own insurance.

Read more: Workers' compensation doesn't cover gig workers – here's a way to protect them

These are vitally important issues given the risks involved in courier work. Last year five delivery riders were killed in traffic accidents. Though none were Menulog couriers, Belling mentioned this as a key driver for the company’s change.

The shift to an employment model should also result in greater income certainty for workers. But to what extent they will be better off depends on at least three important details.

A rally in support of food delivery riders in Sydney in March 2018 A rally in support of food delivery riders in Sydney in March 2018. Past surveys have found 75% of riders have earned less than minimum rates through platform work. Dan Himbrechts/AAP

1. What’s the award?

The first question is what modern award – the document that sets minimum terms and conditions of employment within a specific industry or occupation – will couriers be employed under.

According to Menulog there are “a number of challenges” in moving to an employment model, with Australia’s award system cited as a potential barrier.

The award now covering couriers is the Road Transport and Distribution Award 2020. Menulog has indicated it wants delivery workers to be covered by a new award, and intends to consult with the union to create it.

It hasn’t spelt out what the specific “challenges” in the existing award are – employer groups often talk in generalities about a lack of flexibility – but it may include removing minimum engagement periods.

Under the existing award – as with others – a casual employee must be paid for a minimum four-hour shift. Minimum engagement periods are important for giving workers some certainty as to how much they will earn when asked to work. In contrast, an independent contractor can be engaged for a one-off delivery that may only be for a few minutes to earn a few dollars.

The award also stipulates penalty rates and allowances for unsociable hours or days (such as public holidays).

If Menulog’s move involves eroding fundamental award principles about minimum hours and payments, its couriers could find “employment” isn’t much better their current conditions.

2. Does every worker get to be an employee?

Even given the limited scope of the trial (Menulog operates throughout Australia and New Zealand, while its parent company Just Eat Takeaway operates in 23 countries) it is unclear if the platform plans to make all couriers working in Sydney’s CBD employees.

Did somebody say workers' rights? Three big questions about Menulog's employment plan Menulog’s parent company Just Eat Takeaway has operations in 21 countries and partnerships in two others (Brazil and Colombia). www.justeattakeaway.com

Or will it end up with a two-tier system, where some couriers are engaged as employees and other remain contractors? If this is the case, it could make contract work even more precarious.

It’s important to know who gets to be an employee and why. This should be transparent. Platform companies are notorious for their “black-box” algorithmic management. Their algorithms now effectively make workers compete with each other for gigs. A system that makes them compete for the chance to be rewarded with the badge of “employee” is hardly much better.

Read more: Algorithms workers can't see are increasingly pulling the management strings

3. How to deal with multi-apping?

It is a feature of the gig economy that couriers often work on multiple apps at the same time to try and win more gigs – a practice known as “multi-apping”.

If they become Menulog employees, will they have to forego this right? Will they be allowed to earn money through other platforms during times when they’re not employed?

Again, these details will need to be worked out. The answer will have ramifications across the food delivery industry.

Finally, are customers willing to pay?

Menulog’s announcement has been welcomed by unions, including the Australian Council of Trade Unions’ head Sally McManus. But the details that remain unclear are fundamentally important.

This trial may mark a major shift in this part of the “gig economy”. The head of Just Eat Takeaway, Jitse Groen, said last year he would rather his workers get more protections and benefits. Belling told the Senate inquiry that treating couriers as employees “may cost us more, but it’s the right thing to do”.

But how much more Menulog is prepared to pay also depends on how much more customers are willing to pay.

It is important for the gig economy as a whole that Menulog get this right in Australia. That will depend on the answers to the above questions.

Authors: Tom Barratt, Lecturer, Centre for Work + Wellbeing, Edith Cowan University

Read more https://theconversation.com/did-somebody-say-workers-rights-three-big-questions-about-menulogs-employment-plan-158942

How a Burleigh Heads Plumber Tests for Pipe Leaks

Pipe leaks can be deceptively difficult to spot. Some announce themselves with a steady drip under the sink, but many develop quietly behind walls, ...

What Local Businesses Should Expect from IT Services in Melbourne?

If you run a Melbourne business with roughly 7–100 staff, you have probably noticed something over the last couple of years. The IT problems got m...

How Professional Cleaning Improves Indoor Air Quality

Indoor air quality (IAQ) plays a crucial role in our health, comfort, and overall wellbeing. Australians spend nearly 90% of their time indoors-at hom...

Solar and Solar Battery Systems: Powering Smarter Homes in Victoria

As energy prices continue to rise and sustainability becomes a priority for Australian homeowners, more families are investing in Solar and Solar Ba...

Plumbing Emergency Melbourne: What to Do When Every Minute Counts

A sudden plumbing issue can quickly turn into a major disaster if not handled promptly. From burst pipes and overflowing toilets to leaking gas line...

Why Older Melbourne Homes Require Detailed Building & Pest Inspections

Older homes make up a large part of Melbourne’s housing stock. Victorian terraces, Edwardian houses, Californian bungalows, and post-war brick hom...

7 Essential Tips for Choosing Reliable Moving Services in Perth

Moving to a new home or office can be exciting, but it also comes with stress, planning, and plenty of decisions. One of the most important choices yo...

How to Find the Best Real Estate Agent Near You on the Central Coast

Choosing the right real estate agent can make a major difference to your final sale price, days on market, and overall experience. The Central Coast...

Unlock Durability And Beauty With Burnt Timber Cladding Solutions

Imagine a home or commercial space that not only stands the test of time but also tells a story through its very facade. In the world of architectur...

Offroad Caravans: Built for Adventure Beyond the Beaten Track

Australia’s vast and varied landscapes invite travellers to explore far beyond sealed roads and crowded parks. Offroad caravans are purpose-built ...

The Expert's Guide to Understanding Large Bore Steel Pipe Specifications

When it comes to infrastructure, construction, and various industrial applications, the choice of materials is paramount. Among the options availabl...

Preparing for Your First Trip to San Francisco in 2026

San Francisco has long occupied a particular place in the Australian imagination. It is compact yet complex, progressive but historic, and visually st...

Modern Office Painting in Australia - It's the Real Game Changer

Walk into any modern Australian office today and you'll be struck by the fact it's a whole different beast from the ones we grew up with. Gone are t...

How to Choose the Right Suburb for Your Lifestyle

Choosing the right suburb is one of the most important decisions you’ll make when buying or renting a home. Beyond the property itself, the suburb...

Considering Cryolipolysis Fat Freezing? Here’s What You Need to Know

Body confidence can shift over time, and sometimes even good diet and training can still leave a stubborn area of fat that won’t budge. If you’r...

From Local Tradie to Digital Leader: The Strategy Behind Auto Gate Guys Sydney’s Growth

For many small trade businesses, digital marketing still feels like a buzzword, not a necessity. They rely on word-of-mouth referrals, repeat clients...

Electric Automation System: Smarter Control for Modern Electrical Infrastructure

Modern buildings and industrial facilities are increasingly dependent on intelligent control and efficiency. An electric automation system brings t...

The Damp Truth: Why Your Overflowing Gutters Are an Open Invitation for Termites

When it comes to protecting your home, most people think about visible threats — storm damage, cracked tiles, break-ins. But one of the most destruc...