Employee New Penalty Pay Rates Legislation has Some Big Teeth. 

Legislation in Parliament this week to protect workers’ penalty rates, which was part of the Labour Government’s Election Commitment “Protecting penalty rates for millions of workers is an important part of that – making sure Australians can earn more and keep more of what they earn.” Attributed to the Prime Minister of Australia.

“This legislation will prevent award variations from reducing or removing penalty and overtime rates. It will ensure the wages of around 2.6 million modern award-reliant workers are protected. “ Attributed to Amand Rishworh MP

Legislation to ensure employees receive their penalty rates is being legislated by the government this week, with a potential profound impact on the pay of as many as 2.6 million employees.

Business needs to estimate the costs of the legislation on their staff management complexity and labour $ costs.  

This legislation, when considered alongside existing legislated provisions, will impact a significantly larger number of employees.

This legislation needs to be considered in conjunction with the previous legislation.

1. The casual employee is to be converted to part-time at their request after 12 months, with
   1. Their work times as fixed on the days and times each week to their contracted hours, with
      1. Penalty rates are to be paid for times worked outside of these hours and days, unless.
         1. Individual agreement to each change is received from the employee, and
      2. The employee’s pay is higher than they would have received under the award.
         1. Passing the Better Off Overall Test (BOOT)
      3. Annualised salaried employees’ pay to be greater than they would have received for the hours worked for the Better Off Overall Test (BOOT)

Inzenius simplifies the process and automates the calculation of the amount to be paid directly from their approved timesheet, with the added ability to measure employees’ pay compared to what they would have received under the award.

Australian-owned and built Inzenius payroll system is here to help businesses efficiently and accurately comply with these and all legislated requirements.

Media Release Published by

Government moves to enshrine penalty rates protection

Millions of Australian workers will have their penalty and overtime rates protected under new legislation introduced to parliament today by the Albanese Labor Government.

 
Our number one focus is continuing to deliver cost-of-living relief for the Australian people.
 
We want people to earn more and keep more of what they earn – this protects that for millions of Australians.
 
The Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 will prevent variations to awards that would reduce or remove an employee’s penalty rates or overtime rates.
 
Penalty rates and overtime rates are an essential feature of the award safety net and should be protected.
 
Protecting a fair minimum safety net of terms and conditions of employment is crucial for workers who are award-reliant and low-paid.
 
Quotes attributable to Prime Minister Anthony Albanese:
 
“Our number one focus is continuing to deliver cost-of-living relief to Australians.
 
“Protecting penalty rates for millions of workers is an important part of that – making sure Australians can earn more and keep more of what they earn.”
 
Quotes attributable to Minister for Employment and Workplace Relations Amanda Rishworth:
 
“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.
 
“This legislation will prevent award variations from reducing or removing penalty and overtime rates. It will ensure the wages of around 2.6 million modern award-reliant workers are protected.
 
“Millions of hard-working Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this Bill is so critical and should receive the support of both the Opposition and the Greens.”