Amanda Rishworth (Kingston, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | Hansard source

I would like to thank all members for their contributions to the debate on the Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025. This bill is a clear, simple and practical amendment to protect penalty and overtime rates as fundamental entitlements relied on by millions of award-reliant Australian workers. The Albanese government is committed to delivering workplace relations reforms with a clear goal in sight: to get wages moving for Australian workers. I've heard strong support for this bill and the fundamental importance of penalty and overtime rates for employees, particularly from some of the lowest-paid workers in our country, those who keep Australia running on weekends, public holidays, early mornings and late nights. We promised this bill as one of the first legislative acts of this government, because we will always act to make sure that workers cannot go backwards. Currently, penalty and overtime rates in modern awards can be rolled up into a single rate of pay, leaving some employees worse off. This shouldn't be possible. Award-reliant employees who rely on their penalty and overtime rates deserve guaranteed protection to those entitlements in the minimum safety net.

This bill introduces a clear and simple new principle into the Fair Work Act to protect penalty and overtime rates in modern awards. Specifically, it sets out the important principle that penalty and overtime rates cannot be reduced or substituted in ways that do not fairly compensate employees for the penalty and overtime rates they would otherwise receive. It does this by inserting a clear principle requiring that, in exercising its powers to make, vary or revoke modern awards, the commission must ensure that the rate of a penalty rate or overtime rate that employees are entitled to receive is not reduced and that modern awards do not include terms that substitute employees' entitlements to receive penalty or overtime rates that do not fairly compensate employees for the penalty and overtime rates they would otherwise receive. This bill does not affect individual flexibility arrangements, the bargaining framework or the Fair Work Commission's ability to correct errors or clarify award terms. The bill introduces a simple amendment to ensure that penalty and overtime rates in the modern award safety net are protected.

The feedback to this reform has been resoundingly positive. We've heard real-life evidence and examples of what protecting penalty and overtime rates means for the lives and livelihoods of award covered workers. For example, we heard last night from the member for Hasluck about two constituents in her electorate who have relied on penalty rates. The first, John, said his penalty rates provided the security that got him through university and that they have provided him with the means to start full-time work with some savings in his pocket. The member also talked about a constituent named Lucinda, who said, 'As a full-time student, penalty rates are not a luxury but what allowed me to attend class.'

We've heard questions in this debate about how small businesses will be impacted by this bill. To be very clear, this bill does not alter existing employer obligations, including those of small business. Despite the scare campaign being run by the shadow minister, this bill does not introduce new costs or impose additional requirements on small business or any business. I have engaged in detailed consultation on the amendment with both unions and employer groups, including small business representatives, through the National Workplace Relations Consultative Council and the Committee on Industrial Legislation. Employers already have an ongoing responsibility to correctly apply the relevant modern award, including the payment of penalty and overtime rates where required. This bill does not change that. It does not apply retrospectively, nor does it impose new obligations on employers or disrupt day-to-day operations.

To address questions about the bill's impact on productivity, it has never been and never will be the solution to make workers do more for less. This government is committed to providing productivity and enhancing economic resilience, but we do not accept that sending hardworking award-covered workers backwards through the reduction of their penalty and overtime rates is the way to do this.

The path to achieving flexibility and productivity gains can be found in good faith enterprise bargaining, rather than by undermining award entitlements. Our bargaining reforms increased access for workers and employers, including small businesses, to negotiate agreements with their employees and unions. Enterprise bargaining can facilitate innovation and a greater acceptance of new technology, and can foster skills growth for employees, all of which enhance productivity.

Whenever we stand up for workers' pay, the Liberals oppose it. Our position here is simple, and it will never change. We want people to earn more and keep more of what they earn. We, of course, respect the commission's role as an independent industrial tribunal. The commission will continue to interpret and apply the Fair Work Act, including the new principle introduced by this bill. This process will be guided by its usual consultative approach, ensuring all interested parties have the opportunity to present their views. This bill also preserves the commission's existing powers to remove ambiguity and uncertainty or to correct an error in the modern award.

It has been suggested that this bill could require the commission to review all modern awards for compliance with the new principle or to review penalty and overtime rates, even if that is beyond the scope of a specific application. This has never been the intent of our bill, and we are confident that the bill, as introduced, would not have operated in this way. However, this government is committed to genuine consultation, including with employer representatives and unions. We are amending the bill for the avoidance of doubt and to further provide certainty to stakeholders. This bill is unequivocally clear. It will not require the commission to undertake a review of all modern awards, initiate a review of any award terms outside of the scope of application before the commission or exercise its power under part 2-3 of the Fair Work Act to make, vary or revoke modern awards.

For many award-reliant employees, penalty and overtime rates are a critical part of their take-home pay. Earlier this week, we did hear a very long and wide-ranging speech from the shadow minister. He got a lot of his thoughts and feelings out about a lot of things, including our consultation process, but, more concerningly, he is running a deep, disingenuous scare campaign about the impact of this bill on small business. To be very, very clear, our legislation is about protecting what is currently in place. That means, if you're a small business and you're paying your workers by the modern award safety net, the impact is this: do exactly what you're doing right now.

After all the bluster and grandstanding, the shadow minister still hasn't revealed his position on the question that really matters: are he and his party going to back this legislation to protect penalty and overtime rates or not? The shadow minister says he supports penalty rates, but he is also talking this bill down. The question for the shadow minister and for those opposite is: is he going to back in his bluster, or is he going to protect penalty rates? It's a very simple proposition.

As we have heard today, it is low-paid workers, women, and young people who are more likely to be reliant on awards, as well as those working in retail and hospitality, who often work unsociable and irregular hours. This simple and very straightforward bill is about fairness. It is about respecting the millions of Australians who work public holidays, weekends, late nights and early mornings, and it's about making sure the safety net does what it's meant to do—protect those who need it most. I commend the bill to the House.

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