Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025

Stage by Stage

Summaries in reported speech - not a transcript. In date order, both chambers.

1. Thursday 24 July 2025 · House of Representatives

   Second Reading

   The Minister for Employment and Workplace Relations introduced legislation to protect penalty and overtime rates in modern awards. The bill aims to prevent these rates from being rolled up into single pay rates, thereby safeguarding the wages of low-paid workers. The Minister argued that current arrangements allow employers to undermine the safety net, while the proposed changes would not disrupt enterprise bargaining or individual contracts. The debate concluded with the bill being commended to the House.

   Outcome: The debate was adjourned.

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2. Wednesday 30 July 2025 · House of Representatives

   Reference to Committee

   The debate concerned a motion to refer the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 to a parliamentary committee for advisory report. The opposition argued the legislation was poorly drafted and lacked consultation, potentially harming small businesses and employment. The government rejected the motion, asserting the bill protects workers' pay and pointing out the proposed committee did not exist. The motion was defeated in a division.

   Outcome: The motion to refer the bill to committee was not passed, with 42 votes in favour and 90 against.

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3. Wednesday 30 July 2025 · House of Representatives

   Second Reading

   The debate centred on the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025, which aimed to legislate protections for penalty and overtime rates in modern awards. Government members argued the bill was necessary to prevent employers from eroding wages, particularly for low-paid, casual, and young workers, while fulfilling an election commitment. Conversely, Opposition and independent members criticised the legislation for undermining the independence of the Fair Work Commission and ignoring the views of small businesses and industry groups. The proceedings were interrupted before a vote could be recorded.

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4. Thursday 31 July 2025 · House of Representatives

   Second Reading

   The House of Representatives debated the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025, which aimed to prevent the reduction of penalty and overtime rates in modern awards. Labor members argued the legislation protected low-paid workers, particularly women and young people, from losing entitlements without imposing new costs on businesses. The Liberal Party moved an amendment condemning the lack of consultation with small businesses and the absence of a regulatory impact statement, which was defeated. The bill itself was subsequently defeated in a division.

   Outcome: The bill was defeated in a division with 42 votes in favour and 89 against.

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5. Thursday 31 July 2025 · House of Representatives

   Third Reading
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6. Monday 25 August 2025 · Senate

   First Reading
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7. Monday 25 August 2025 · Senate

   Second Reading

   The Senate debated legislation to protect penalty and overtime rates in modern awards, preventing them from being rolled up into single pay rates that leave workers worse off. Labor and Greens senators supported the bill as essential protection for low-paid workers, while Coalition senators opposed it, arguing it reduced worker choice, added regulatory burden to small businesses, and undermined the Fair Work Commission's independence. The Greens moved an amendment calling for a right to work from home, which was not passed. The debate concluded with the bill proceeding to further consideration.

   Outcome: The second reading amendment moved by Maria Kovacic was not passed, and the debate was adjourned with the bill to be resumed later.

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8. Tuesday 26 August 2025 · Senate

   Second Reading

   The Senate debated the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025, which aimed to prevent the reduction of penalty and overtime rates in modern awards. Labor and the Greens supported the legislation to protect vulnerable workers, while Independent Senator Tammy Tyrrell raised concerns about the lack of a regulatory impact statement and Liberal Senator Sarah Henderson opposed it due to small business viability issues. The Minister for the Environment and Water delivered the government's closing speech, clarifying that the bill did not impose new regulatory burdens or require proactive reviews by the Fair Work Commission. The Minister commended the bill to the Senate, emphasising its role in protecting low-paid workers from unfair pay structures.

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9. Wednesday 27 August 2025 · Senate

   In Committee

   Senator Maria Kovacic moved an amendment to introduce exemptions for the Fair Work Commission, arguing the bill imposed undue regulatory burdens on small businesses and restricted employee flexibility. Minister Murray Watt opposed the amendment, asserting that the legislation protected award-reliant workers from penalty rate cuts without adding new obligations for employers. The debate centered on the bill's impact on small business viability, the absence of a regulatory impact statement, and the validity of individual flexibility agreements. Kovacic raised concerns about negative impacts on productivity, while Watt defended the government's record and commitment to election promises.

   Outcome: The Senate reported progress on the bill.

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10. Wednesday 27 August 2025 · Senate

    Second Reading

    The Senate debated the second reading of the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025. Senator Pocock moved an amendment calling for legislation establishing a right to request work from home arrangements. Senator Lambie moved a separate amendment noting the government's failure to standardise small business definitions and advocating for a lower company tax rate. Both amendments were defeated in division.

    Outcome: The second reading amendment moved by Senator Pocock was not passed, the amendment moved by Senator Lambie was not passed, and the bill itself was not passed.

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11. Thursday 28 August 2025 · Senate

    In Committee

    The Senate considered amendments to the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 during committee stage. The Coalition moved amendments to exclude small businesses and mandate a regulation impact statement, arguing the bill imposed unnecessary burdens and risked unintended consequences. The Greens proposed amendments to broaden flexible work rights for all employees and ensure workplace determinations did not result in less favourable terms than existing agreements. The government opposed all amendments, maintaining that the bill’s scope was strictly limited to protecting penalty rates in modern awards and that existing laws already addressed flexibility and bargaining fairness. All five amendments were defeated.

    Outcome: All five amendments were defeated, with divisions resulting in votes of 25-34, 26-33, 27-32, 12-29, and 13-30 against passage.

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12. Thursday 28 August 2025 · Senate

    Third Reading
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