Doug Williams worked as a cycle courier for Deliveroo last year. Credit:Louise Kennerley Concerns over safety have been raised as food delivery companies such as Deliveroo and Foodora face a legal challenge from cycle couriers who claim they should be considered employees. "These riders are currently being classified as independent contractors, which means they aren't entitled to things like minimum rates of pay and unfair dismissal," said Daniel Victory, a lawyer at Maurice Blackburn. Williams said he earned a maximum of $9 per delivery, averaging two deliveries an hour. Another former Deliveroo worker, Alison Millward, 24, was paid more generously, earning $18 and hour plus $2.50 per delivery - but she said couriers hired later were paid less.

Food delivery companies like Deliveroo and Foodora face a legal challenge from cycle couriers over whether they should be classified as independent contractors. Credit:Jason South The minimum hourly rate of pay for casual bicycle couriers is $23.45 per hour with penalty rates paid on Saturdays, Sundays and public holidays – but only for employees. Mr Williams and Ms Millward did not receive sick pay, holidays, superannuation or penalty rates. Alison Millward said her her parents gave her insurance for Christmas because they were worried about her work as a food delivery worker. Credit:Josh Robenstone Some equipment was provided but they were expected to provide their own bicycle, helmet and maintenance, mobile phone and data and pay a "deposit" for the uniform.

"I was fired with an automated text message," Ms Millward said. "It just said I wasn't doing enough shifts." 'A pretty dangerous job' Mr Victory said he was investigating whether the companies have broken labour laws relating to relating to sham contracting, and underpayment of wages and superannuation. "They also have questions about who is liable and whether they are covered by insurance if they are involved in an accident while they are working," he said. Ms Millward said being a bicycle delivery rider was a "pretty dangerous job".

"My parents gave me insurance for Christmas because they were worried about me," she said. "They got me an ambulance membership." Ms Millward's brother is a soldier yet she said: "My mum would say she was more worried about me being out on the streets than about him over in Iraq." A UK company, Deliveroo is estimated to be worth more than $1 billion. A Deliveroo spokeswoman said in a statement that safety was a "top priority" for Deliveroo. "All our riders go through a rigorous induction process and safety and riding test before they are able to make deliveries for Deliveroo," she said.

"And they are covered by workers' compensation and are required to have their own public liability insurance, or opt into a policy that the company has been able to source for them at a competitive rate." Rival company Foodora also considers its food delivery couriers as independent contractors. "Foodora is confident about its business policies and procedures with regards to the contracted riders/drivers," a spokeswoman said. "It is lawful and riders/drivers are treated in a good way." Innovative or 'old-fashioned exploitation'? Tony Sheldon, the national secretary of the Transport Workers Union, said paying food delivery workers "per task" eroded labour rights such as minimum pay, maternity leave and the right to challenge unfair employers practices.

"The nature of 'casual contractors' in the 'gig economy' is aimed at driving down conditions which workers have won over many centuries," he said. "Its proponents like to say it is innovative and disruptive when in fact it amounts to old-fashioned exploitation." Maria Nawaz, a solicitor with the University of NSW's Kingsford Legal Centre, said the work arrangements had all the signs of a sham contract. "Deliveroo and Foodora require riders to wear their uniforms, workers can't bargain with companies nor with customers over rates of pay per delivery," she said. "Most workers don't have existing businesses but are told to get ABNs in order to perform the work, and they don't provide skilled labour." Ms Nawaz said the companies appeared to be exploiting uncertainty in the law. "We are concerned such arrangements target vulnerable workers who are open to exploitation, such as international students, young workers and migrants, who are often unaware of their rights," she said.

Mr Williams said he trained alongside backpackers and international students, some of whom did not appear to speak English. "There were people who I don't believe could have read road signs, let alone be familiar with Australian road rules," he said. Last October, a British court rejected Uber's claim that its drivers were self-employed and thus decided they were entitled to a minimum wage, holiday and sick pay. Associate Professor Angela Knox, from the University of Sydney Business School, said she expected the decision would be followed in Australia. "These companies want all of the power and control that goes with being an employer but they want to avoid the responsibilities and the risks," she said. "You cannot have it both ways and the law enshrines that."

Loading Associate Professor Knox said companies that offered tech-based work platforms like Uber, Deliveroo and Foodora had to be monitored to ensure work rights were not eroded. "Once you remove that floor of protections and entitlements, you no longer have a 'level playing field' so you unleash what becomes a 'race to the bottom'," she said. "Low road economies are typically associated with greater inequality and poverty."​