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

Opened the debate

Rishworth argued that the bill fulfils an election commitment to protect penalty rates for workers relying on the modern award safety net. Rishworth stated that the legislation prevents penalty and overtime rates from being rolled up into single pay rates, which can leave employees worse off. Rishworth emphasised that the bill introduces a principle for the Fair Work Commission to consider when making or varying awards, rather than imposing prescriptive rules. Rishworth noted that the changes do not affect enterprise bargaining, individual flexibility arrangements, or existing employment contracts. Rishworth highlighted that the reforms are targeted at protecting low-paid workers in sectors like retail and hospitality without disrupting employer operations.

Government response

Rishworth outlined that the bill amends the Fair Work Act 2009 to enshrine protections for penalty and overtime rates. Rishworth explained that the new section 135A requires the Fair Work Commission to ensure these rates are not diminished when varying modern awards. Rishworth clarified that the legislation does not stop parties from negotiating appropriate hours of work, provided penalty rates are not reduced. Rishworth stated that the changes are not retrospective and do not impose new obligations beyond existing award responsibilities. Rishworth affirmed that the Fair Work Commission retains its independent role and existing powers to correct errors in awards.