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Urgent Update: New Laws to Protect Penalty Rates for 2.6M Workers

UPDATE: New laws aimed at protecting penalty rates for 2.6 million workers are set to be introduced when the federal parliament resumes on Tuesday, October 31, 2023. This urgent legislation will ensure penalty rates and overtime pay are legally safeguarded, preventing employers from undermining these essential workplace conditions.

Employment Minister Amanda Rishworth emphasized the importance of these measures, stating, “If you rely on the modern award safety net and work weekends, public holidays, early mornings, or late nights, you deserve to have your wages protected.” The Albanese government is prioritizing this law to close loopholes that could diminish workers’ take-home pay.

The proposed laws will prevent penalty rates from being included in a single pay level, which could leave employees worse off. This is particularly significant following recent proposals from major retail and business groups suggesting that large companies could opt out of providing penalty rates in exchange for higher base pay. The government firmly opposes these changes, having submitted its stance to the Fair Work Commission.

Rishworth noted that vulnerable groups, including women, part-time or casual workers, and those under the age of 35, are disproportionately impacted by penalty rates. “Enterprise bargaining should be about improving entitlements, not eroding the award safety net,” she stated.

The legislation will also ensure that pay rates remain stable during negotiations with the Fair Work Commission, protecting workers from potential reductions. As the 48th parliament opens, the penalty rate laws will be among the first critical pieces of legislation introduced, alongside measures aimed at reducing HECS debt for students.

Workers and advocates are urged to stay tuned for developments as parliament reconvenes, with all eyes on this crucial legislative move that could impact millions across the nation. The government is pushing for swift passage of these laws to ensure essential protections remain in place, reflecting a commitment to safeguarding workers’ rights in Australia.

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