As the political landscape heats up with the recent declaration of the federal election date, Prime Minister Anthony Albanese is set to announce new legislation aimed at protecting penalty rates for workers.

This proposed legislation will safeguard penalty rates for approximately three million Australian workers, despite industry calls for more flexible workplace regulations.

Albanese's announcement emphasizes that penalty rates cannot be cut, a move designed to protect workers' earnings, although it is expected to face opposition from small employers who argue that high rates hinder business operations.

The legislation will restrict employers' ability to reduce penalty rates through awards at the Fair Work Commission, while still allowing for negotiations in enterprise bargaining agreements.

Labor's policy particularly supports workers who rely on penalty rates during public holidays, aiming to prevent cuts to these rates in workplace agreements.

Employment Minister Murray Watt has highlighted the significance of weekends as family time, asserting that workers deserve fair compensation for working during these crucial periods.

In addition to protecting penalty rates, unions are advocating for the establishment of a new tribunal to simplify the process for workers to reclaim lost wages due to wage theft.

Throughout the campaign, Albanese has consistently focused on addressing cost of living issues and promoting wage growth since taking office in 2022.

Labor has accused Opposition Leader Peter Dutton of failing to protect workers' pay against big retailers looking to cut penalty rates, suggesting that the opposition is not aligned with workers' interests.

Unions oppose recent applications from industry groups to the Fair Work Commission, warning that such moves would financially disadvantage workers, a claim contested by industry representatives who label it as misinformation.

In contrast, Dutton is promoting a plan that includes significant tax incentives for new businesses, which he argues will stimulate economic growth, highlighting the stark difference between the two parties' approaches to worker protections.

This legislative push follows Labor's previous efforts to criminalize wage theft and regulate gig economy practices, reflecting the strong influence of unions on Labor's agenda.