Labor takes action to enhance penalty rates and overtime pay safeguards for numerous employees | Labor Relations

In a move to protect the rights of workers who rely on award wages, the new federal parliament is set to introduce legislation that will safeguard penalty rates and overtime pay. This legislation, which is expected to pass, will ensure that workers paid under awards cannot have their penalty rates reduced in exchange for a higher base pay rate if it results in them being worse off. This protection will benefit approximately 2.6 million Australians whose pay is determined by an award. The employment minister, Amanda Rishworth, stated that the government is addressing cases before the Fair Work Commission that could lead to cuts in take-home pay. The changes are a response to applications from retail and business groups seeking to opt out of providing penalty rates for staff in exchange for higher base pay levels. Labor has opposed these proposed changes in a submission to the Fair Work Commission. The announcement and reforms, particularly affecting women, part-time or casual staff, and those under 35, highlight the government’s commitment to ensuring that workers are not penalized with lower pay for working longer and harder. Furthermore, this legislation sets the stage for potential future conflicts between the government, unions, and the business sector at the upcoming productivity summit at Parliament House.

Source: https://www.theguardian.com/global/2025/jul/19/labor-moves-to-bolster-penalty-rates-and-overtime-pay-protections-for-millions-of-workers