19-07-2025
New laws set to protect penalty rates and overtime pay for millions of Aussie workers
Australian workers who rely on award wages would have their rights to penalty rates and overtime pay protected under one of the new federal parliament's first bills.
The legislation would prohibit award-earning employees from accepting penalty rate reductions in exchange for a higher base rate of pay if it would leave them worse off.
New employment minister Amanda Rishworth earmarked the bill in Canberra on Saturday as the first off the rank for the returning Labor government.
If passed, it will amend the Fair Work Act to provide stronger protections for the roughly 2.6million people whose pay is set by an award.
An award is a legally mandated minimum rate of pay for workers within certain industries or occupations.
People covered by awards are more likely to work on a part-time or casual basis and be women or under 35 years of age.
In justifying the legislation, Rishworth said there were cases before the Fair Work Commission she feared could reduce worker's overall pay.
'What's become clear is there is a number of cases on foot which are trying to roll in penalty rates or reduce penalty rates in an unfair way,' she said.
'And so, what's become clear is that we need added legal protection to make sure penalty rates and overtime are protected in our award system.'
She appeared alongside retail workers who said penalty rates were a crucial component of their overall pay packages.
Retail worker Liarne said she earned about $6.35 an hour in penalty rates, about $7,500 over the course of a year.
'That's really important because it helps me pay for rent, groceries, school fees and the care of my animals, which I love dearly,' she said.
'Penalty rates are really important.'
Another retail worker, Daniel, said his penalty rate earnings - about $85 per week - allowed him to foot the bill for necessities and lifestyle expenses.
'Generally, I find living on six to $700 a week is a struggle, whether you've got a partner to rely on or not,' he said.
'Penalty rates honestly makes a huge difference, and without it, I'd have to work more. See my family less, see my dog less, see my friends less.
'Just not go to the movies, not ever have a holiday. It's a myriad of things that would affect me.'
Rishworth said employers in the retail, clerical and banking sectors had applied to the Fair Work Commission to 'trade away' penalty rates of lower-paid workers.
The announcement could add to the grievances likely to be aired by business groups at the productivity summit to be hosted at Parliament House in August.
Australian Industry Group chief executive Innes Willox told the A ustralian Financial Review there was a 'dark irony' in Labor's attempts to fast-track the bill at a time when productivity talks loomed.
Despite ongoing efforts to negotiate with the government over the proposed reforms, Mr Willox said there was 'obvious concern that it could further reduce workplace flexibility, especially at a time when we are already seeing rising national unemployment and the private sector clearly in job-shedding mode'.
Labor will only need support from the Greens to secure a majority for the bill which it expects to sail through parliament soon after it resumes on Tuesday.
