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

Brown argued that the bill protects millions of workers who rely on modern awards for fair pay during unsociable hours. Brown stated that active applications before the Fair Work Commission sought to trade away penalty rates, which the bill would stop. Brown emphasised that the legislation does not block enterprise bargaining but ensures the safety net is not eroded. Brown noted that penalty rates are essential for workers to cover living costs and compensate for time away from family.

Waters supported the bill as a critical protection against the erosion of pay and conditions for workers. Waters argued that the legislation does not address broader workplace challenges such as casualisation and gig economy exploitation. Waters moved an amendment to guarantee a reasonable entitlement to remote work for two days weekly. Waters stated that this right would improve productivity, reduce commute costs, and help workers balance care responsibilities.

Stewart argued that the bill secures safeguards for over 2.6 million employees dependent on awards against corporate plans to lower penalty rates. Stewart cited evidence that previous cuts to penalty rates in 2017 did not create jobs but caused hardship for workers and local economies. Stewart stated that the legislation ensures modern awards cannot be varied in ways that leave any single worker worse off. Stewart emphasised that the bill is urgent to stop current applications before the Fair Work Commission.

Ananda-Rajah argued that penalty rates recognise the sacrifice made by workers serving communities during unsociable hours. Ananda-Rajah stated that the legislation closes gaps enabling employers to incorporate penalty rates into base pay, which undermines compensation. Ananda-Rajah highlighted that award-reliant workers are disproportionately women and young people, making the bill a matter of equity. Ananda-Rajah noted that the government has consistently acted to protect wages and close industrial relations loopholes.

Smith argued that the bill delivers on the government's election commitment to protect penalty and overtime rates for 2.6 million workers. Smith stated that the legislation amends the Fair Work Act to ensure rates cannot be reduced or substituted by terms that lower take-home pay. Smith cited testimony from workers who rely on penalty rates to make ends meet and cover essential expenses. Smith emphasised that the bill provides certainty and prevents wages from going backwards for vulnerable employees.

Ghosh argued that the bill protects low-paid workers from having their wages treated as commodities to be bartered down. Ghosh stated that the proportion of workers relying on modern awards has increased, making the safety net more critical. Ghosh cited research showing that previous penalty rate cuts did not create jobs but reduced disposable income for workers. Ghosh emphasised that the legislation prevents the erosion of minimum conditions for those on the downside of advantage.

Dolega argued that the bill delivers on the government's promise to protect penalty rates for workers in essential sectors. Dolega stated that the legislation strengthens the safety net without adding unnecessary complexity or blocking enterprise bargaining. Dolega highlighted that modern awards are vital for workers who are more likely to be women, young, or casual. Dolega emphasised that the bill ensures fairness and recognises the sacrifices made by workers during unsociable hours.

Tyrrell stated that she supports the bill but criticised the government for not providing a regulatory impact statement. Tyrrell argued that such a statement is necessary to understand the impact on jobs, businesses, and regulatory complexity. Tyrrell noted that the bill may affect retail workers who had negotiated increased base rates in exchange for lower penalty rates. Tyrrell emphasised that transparency is crucial for deliberative decision-making in the Senate.

Cox argued that the bill ensures fairness by recognising the cost of working late nights, weekends, and public holidays. Cox stated that the legislation protects approximately 277,000 workers in Western Australia who rely on penalty rates. Cox emphasised that the bill places guardrails around flexibility to prevent exploitation and ensure workers are not short-changed. Cox noted that fair pay supports local economies and strengthens economic resilience.