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Move to protect penalty rates welcomed

29 July, 2025

A Bill to protect penalty rates for 2.6 million award-reliant workers has been introduced in parliament by the federal government.

he proposed legislation introduced by the Albanese federal government would prevent penalty and overtime rates from being varied or substituted in awards.

Awards generally apply to workers who are not covered by collective agreements or employment contracts – commonly retail, hospitality and care workers.

The Australian Council of Trade Unions (ACTU) said the move “protects the safety net” for lower-paid, award-reliant workers who are primarily women, young people and those in part-time or insecure work.

“Penalty rates are an essential part of millions of workers’ take-home pay,” ACTU Secretary Sally McManus said.

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