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Albanese Government Finalises Draft Laws to Protect Penalty Rates and Overtime Pay

The draft bill locks in weekend, public holiday and overtime pay as enforceable conditions within the Fair Work Act ahead of parliament’s resumption.

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Overview

  • Draft legislation will be among the first bills introduced to the 48th federal parliament to enshrine penalty rates and overtime pay as protected workplace conditions.
  • Changes prevent reductions to penalty rates in exchange for higher base pay if employees end up worse off, closing loopholes that threatened take-home earnings.
  • Approximately 2.6 million award-dependent workers, including women, part-time, casual and younger staff, will gain legal safeguards for unsocial hours compensation.
  • Peak retail and business groups had proposed opt-out agreements to waive penalty rates for staff in return for higher base salaries, which Labor opposed at the Fair Work Commission.
  • Employment Minister Amanda Rishworth said these reforms build on first-term industrial relations changes and set the stage for other early measures such as HECS debt relief.