Labor seeks action on food deliverers

The federal government urgently needs to address the issue of food delivery riders being paid below the minimum wage and missing out on work rights, Labor says.

The Transport Workers Union says three in four riders are paid below minimum rates while one in every two riders say they, or someone they know, has been injured on the job.

As well, food delivery companies do not pay sick leave or workers compensation when people are injured on the job.

Labor workplace spokesman Brendan O'Connor says there is too much sham contracting, where people are deemed not to be employees.

"In the case of Deliveroo riders and Uber Eats workers, they are getting a third of the minimum wage," Mr O'Connor told Sky News on Sunday.

"That has to stop - you can't continue to argue someone is a contractor so you can avoid paying them even the minimum wage."

A spokesman for Workplace Minister Craig Laundy told AAP the Fair Work Ombudsman was keeping a close watch on the sector and any complaints should be referred there.

The ombudsman recently started action on behalf of Foodora workers.

"There are clear protections in the Fair Work Act against sham contracting," the spokesman said.

"Companies need to be careful they are not inappropriately classifying employees as independent contractors when they're not."

On the issue of Uber drivers, Mr O'Connor said Labor was looking at policy shifts overseas.

In November last year, Uber in the UK lost an appeal against a tribunal ruling that its drivers should be classed as workers with minimum-wage rights.

"You can see around the world there are decisions being made as to the status of Uber drivers and recently in London they have actually determined an Uber driver to be an employee, so I am looking at other jurisdictions to see what happens there," Mr O'Connor said.

"It is exploitation ... and we see no efforts from the government to address that."