May 5, 2019

World first delivery rider payout

Food delivery riders in Australia have achieved a world first with almost 1,700 riders receiving $2.3 million in back-pay, after Foodora was forced to admit it was underpaying their wages and refusing them superannuation.


But riders only received a portion of their outstanding entitlements since their claims reached almost $8 million. Over 3,800 riders could not be contacted to make claims, meaning the extent of the wage theft runs to even more millions of dollars.

Foodora’s parent company Delivery Hero offered just $3 million to settle with its riders, after it appointed external administrators and announced it was exiting Australia. Riders will therefore receive around 29 cents in the dollar for their claims and will also pay tax on wage underpayments.

Foodora’s admission of underpayment followed protests and exposés by riders and the TWU over appalling conditions at Foodora.

A broken system

The Federal Government failed delivery riders by allowing Foodora to skip the country with millions owing to workers.

Last year, the TWU exposed Foodora’s own acknowledgement that they were engaging in sham contracting through leaked internal emails. Former rider Josh Klooger saw through an unfair dismissal case against the delivery giant and with the help of the TWU, he won. 

Watch Josh’s story:

The TWU and Delivery Riders Alliance continue to take action to demand regulation of the gig economy and protection for workers.

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