The Fair Work Amendment (Protecting Penalty and Overtime Rates) Act 2025 (Cth), was assented to on 29 August 2025, amending the Fair Work Act 2009 (Cth) to safeguard employees’ penalty and overtime entitlements.
Under the new section 135A, the Fair Work Commission (FWC), when making, varying, or revoking modern awards, must ensure that penalty rates and overtime rates are not reduced and that awards cannot include terms that would diminish these additional remunerations.
Members are encouraged to review their penalty and overtime rates to avoid any underpayments.
If you are unsure please reach out to the Workplace Relations Team for advice at 61755900 or workplace@mba.org.au.
