Penalty, Overtime Rates Locked in for 2.6 Million Workers Under New Fair Work Law

The Coalition warns the laws are not necessary and that workers should have the freedom to negotiate their own deals.

Exterior signage is seen at Fair Work Commission in Melbourne, Victoria in Australia on June 17, 2025. AAP Image/James Ross

Australia’s 2.6 million award workers will see their penalty and overtime rates locked in under new legislation passed by both houses of Parliament on Aug. 28.

The Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 prevents the Fair Work Commission from varying any award in a way that reduces or substitutes overtime or penalty rates, for other contractual benefits.