The gig economy has revolutionised how millions of Australians work, but until recently, rideshare drivers and other platform workers had little recourse when their accounts were suddenly deactivated. That’s all changed with groundbreaking new laws that finally recognise the unique position of “employee-like workers” and protect them from unfair deactivation.
Key Takeaways:
- New Protections: As of 26 August 2024, “employee-like” workers are protected from unfair deactivation.
- Who is Covered? If you have low bargaining power, receive pay comparable to an employee, or have little control over your work, you are likely covered.
- Strict Deadline: You have only 21 days from the date of deactivation to lodge an application with the Fair Work Commission (FWC).
- Platforms Must Follow Rules: Digital platforms must now follow a strict code before deactivating you, except in cases of serious misconduct.
What is Unfair Deactivation?
Unfair deactivation occurs when a digital platform (like Uber, DoorDash, or similar apps) terminates an employee-like worker’s access to their platform without a valid reason or without following proper procedures. It’s essentially the gig economy equivalent of unfair dismissal for traditional employees.
Since 26 August 2024, when the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 came into effect, the Fair Work Commission (FWC) has the power to protect gig economy workers, including rideshare drivers, food delivery workers, and other platform workers, from these unfair deactivations.
A deactivation is considered unfair when the FWC determines that:
- there was no valid reason for the deactivation related to the worker’s capacity or conduct
- the platform operator failed to follow the processes specified in the Digital Labour Platform Deactivation Code
- other relevant circumstances make the deactivation unjust or unreasonable
Just like traditional unfair dismissal laws, deactivation for serious misconduct isn’t considered unfair. However, platform operators face a high bar in proving serious misconduct and must still follow proper procedures, they can’t simply cut off a worker’s access without justification or due process.
What is an Employee-Like Worker?
An “employee-like worker” is a contractor who meets specific criteria that recognise their vulnerable position in the gig economy. You’re considered an employee-like worker if you’re:
- a party to a services contract as an individual, or:
- a director (or family member of a director) of a body corporate that is a party to a services contract
- a trustee of a trust in which one trustee is a party (in that capacity) to a services contract
- a partner in a partnership in which one partner is a party (in that capacity) to a services contract
- someone who performs all or most of the work under the services contract
- someone who performs work under a services contract:
- using a digital labour platform (for example, a website or app), or
- that was arranged or facilitated using a digital labour platform
- not performing work under the services contract as an employee
- someone who has 2 or more of the following characteristics:
- low bargaining power in negotiations relating to the services contract
- receives the same or less pay than an employee would get
- little authority over how they perform work
The Digital Labour Platform Deactivation Code
The Digital Labour Platform Deactivation Code, which commenced on 25 February 2025, outlines specific processes that digital labour platform operators must follow before deactivating a worker. These include:
- providing a deactivation warning
- issuing a preliminary deactivation notice
- giving written notice of the decision to deactivate access
However, these processes do not apply in cases of serious misconduct, similar to unfair dismissal provisions.
Can I Appeal Uber Deactivation?
Yes, you can appeal an Uber deactivation if you’re an employee-like worker. Employee-like workers have 21 days to lodge an application with the Fair Work Commission, just as they would for unfair dismissal. This tight timeframe makes it crucial to act quickly if you believe you’ve been unfairly deactivated.
The recent landmark case of Mohammad Shareef Hotak v Rasier Pacific Pty Ltd (UDE2025/53) demonstrates that appeals can be successful. This was the first time under the new Closing Loopholes No. 2 provisions that an employee-like worker has been compensated successfully for unfair deactivation.
In this case, Mr Hotak was found to have had his account unfairly deactivated from Uber after he reported an assault by passengers who falsely accused him of threatening them. The Commission noted Mohammad’s consistent high performance over four-and-a-half years and the lack of evidence supporting the serious allegations against him.
Interestingly, Uber reactivated Mohammad’s account during proceedings but argued that no remedy was needed. The full bench of the Fair Work Commission rejected the company’s claim, warning that this tactical reinstatement of workers would allow the platforms to avoid accountability.
Can You Sue Uber for Unfair Deactivation?
Rather than suing Uber through the traditional court system, the proper avenue for challenging unfair deactivation is through the Fair Work Commission. The FWC has been specifically empowered to handle these cases and can order various remedies, including:
- reinstatement of your account
- compensation for lost earnings
- other appropriate remedies
The Hotak case sets an important precedent, showing that platforms cannot simply reactivate accounts during proceedings to avoid consequences. The FWC has made it clear that it will hold platforms accountable for unfair deactivations, even if they attempt tactical reinstatements.
What This Means for Gig Workers
These new protections represent a significant shift in how Australian law treats gig economy workers. For the first time, rideshare drivers and other platform workers have genuine recourse when facing deactivation. The combination of the legislative changes and the Digital Labour Platform Deactivation Code creates a framework that balances the flexibility of gig work with essential worker protections.
If you’re a gig economy worker who believes you’ve been unfairly deactivated, remember that you have just 21 days to lodge an application with the Fair Work Commission. Document everything, seek advice from Fair Workplace Solutions, and know that the law is now on your side.
The Hotak decision sends a clear message to digital platforms: the days of deactivating workers without consequence are over. Australian gig workers finally have the protections they deserve.