Food delivery riders would be protected under a compensation scheme funded by a customer levy on food orders under a landmark proposal to go before the NSW government.

The government is formulating plans to protect gig economy workers who are injured or killed while on the job. The system is intended to be in place by this time next year and would be the first of its kind in Australia.

A public consultation period early next year is expected to canvass three models for personal injury protection: lump sums for serious injury or death, negotiated settlements, or ongoing support similar to traditional workers’ compensation.