‘Unfair’: Labor reveals penalty rates protection as priority when parliament returns

The government is looking to stamp out an “unfair” business move which is leaving workers on penalty rates worse off.

Pay for workers in female, part time and under-35 dominated industries will be the target of some of the first new laws under the new federal government.

On Saturday, Employment Minister Amanda Rishworth announced laws to protect penalty rates and overtime pay for 2.6 million workers would be introduced in the coming weeks.

“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,” Ms Rishworth said.

“We want this law passed as a top priority, so workers are protected from the loopholes that see their take-home pay go backwards.”

People covered by award rates are more likely to be women, work part time, be under 35 years of age or employed on casual contracts, Ms Rishworth said.

Workplace Relations Minister Amanda Rishworth says retail, clerical and banking sector companies have been engaged in the “unfair” practice. Picture: NewsWire / Martin Ollman

The proposed law would add rules to the Fair Work Act, so penalty rates and overtime cannot be rolled up into a single rate of pay where it leaves any individual worker worse off.

Speaking in Canberra on Saturday, Ms Rishworth stood alongside retail workers who said their penalty rates were “really important” in paying for groceries and school fees.

Retail worker Daniel said he was paid about $85 in penalty rates each week, equalling $4240 a year.

“I’ve been in retail for 17 years … That money often pays for vets, dentists, doctors and food.

“Generally, I find living on six to $700 a week is a struggle, whether you’ve got a partner to rely on or not.

“Penalty rates honestly make a huge difference, and without it, I’d have to work more. See my family less, see my dog less, see my friends less,” he said.

“Just not go to the movies, not ever have a holiday. It’s a myriad of things that would affect me.”

Ms Rishworth said the new legislation was prompted by “a number of cases” where penalty rates were being reduced “in an unfair way”.

Retail, clerical and banking sector companies had made moves to trade away penalty rates for lower-paid workers, she said, leaving those staff worse off.

“Enterprise bargaining is the appropriate place to negotiate on entitlements – not eroding the award safety net,” Ms Rishworth said.

Labor needs only the support of the Greens in the senate to pass legislation, sidelining the other minor parties and independents who held sway in the previous parliament’s upper house.

Following the May 3 election, politicians are returning to Canberra with the new parliament kicking off on Tuesday.