The Australian government is set to introduce a Bill designed to protect penalty and overtime rates for approximately 2.6 million workers. The legislation, which will be presented in Parliament on Thursday, aims to ensure that these entitlements remain intact and cannot be reduced or substituted in a way that negatively impacts workers’ take-home pay.
The proposal is a response to concerns that large employers, particularly in sectors like retail and hospitality, are seeking to erode these rates. If successful, the Bill will safeguard millions of workers in industries where irregular hours are common, from public holidays to late-night shifts.
Government’s Push to Safeguard Worker Pay
Employment and Workplace Relations Minister Amanda Rishworth is spearheading the introduction of the Bill. She emphasised that Australians who rely on modern awards—particularly those working weekends, public holidays, and irregular hours—need legal protections to maintain their wages.
According to Rishworth, “Millions of hardworking Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this Bill is so critical”. The government’s initiative comes after a review by the Fair Work Commission (FWC) that could potentially allow large corporations to cut penalty rates in exchange for higher base wages.
The proposal to enshrine these entitlements in law was a direct response to concerns raised by unions, particularly the Australian Council of Trade Unions (ACTU), which argued that weekend work and public holiday shifts should be properly compensated.
The Bill aims to make it clear that the FWC cannot alter an award if it results in workers being worse off. This would prevent any future attempts by employers to negotiate away overtime or penalty rates in deals that would leave workers with less income.
Opposition from the Coalition
While the government’s proposal has been met with strong backing from unions and certain industry groups, opposition is expected from the Coalition. Tim Wilson, the Coalition’s industrial relations spokesman, has argued that the FWC is already equipped to ensure that workers are fairly compensated.
According to Wilson, the government’s intervention is politically motivated and diverts focus from more pressing economic issues, such as supporting small businesses and creating jobs for younger Australians.
“There is no threat to penalty rates,” Wilson stated, claiming that the focus should be on fostering economic conditions that allow businesses to thrive and expand. The debate over this legislation reflects a broader tension between protecting workers’ entitlements and encouraging flexibility in the workplace.
