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 By state political reporter Ashleigh Raper

NSW Labor vows to protect gig economy workers if elected in March following deaths in 2020

New South Wales Labor has promised to better protect workers in the gig economy and boost their workplace entitlements, if it wins the march election.

The Opposition has announced overhauling industrial relations legislation to "modernise" the law in response to the rise of workers in on-demand contract-style employment such as food delivery drivers.

As part of Labor's policy plan to take to next year's election, it will introduce a workers compensation style scheme for people employed in gig economy jobs.

It will also set up a portable leave entitlement scheme that will extend to workers in the disability and community services sector.

"They are long overdue," Opposition leader Chris Minns said.

"This is sending a message to the wider community and economy that we will protect workers in the new economy, and we've got a plan for the future of work in New South Wales."

The government has been under pressure to develop a comprehensive plan for gig economy workers after the death of five food delivery drivers in 2020.

In June this year, there was a landmark court ruling in regard to one of the drivers, Xiaojun Chen, who was hit by a bus and killed in Sydney while riding his motorbike for Hungry Panda.

The court ruled his widow and children, who live in China, were entitled to an $830,000 payout after determining that Mr Chen was an employee, not a contractor.

At the time, the Workplace Relations Minister Damien Tudehope acknowledged the government needed to do more work in developing a policy around the gig economy.

But Shadow Treasurer Daniel Mookhey says no significant changes have been made.

"For nearly a decade now the gig economy has been allowed to proliferate in New South Wales," he said.

"But we haven't overhauled our laws to keep up."

Mr Mookhey is also the chair of a parliamentary committee that is examining the gig economy.

It found that NSW is falling behind other states in developing laws and its failure to provide workers with a minimum wage, paid leave and other entitlements is increasing inequality.

It made 22 recommendations and some are included in Labor's new plan.

Last week, the government responded to the parliamentary committee's report and supported four of the recommendations.

In its response the government also stated that SafeWork NSW has new guidance material and regulations for food delivery drivers.

Unions NSW joined Labor for the unveiling of its plan and criticised the government's response to the report.

"They abdicated any responsibility for workers in New South Wales," secretary Mark Morey said.

"They walked away from protecting workers, they walked away from making workers safer and they walked away from ensuring workers got paid properly."

Queensland and Victoria have schemes in place to better protect gig economy workers.

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