"The Penalty Rates Bill looks to implement unnecessary amendments that will neuter the Fair Work Commission's ability to be the independent umpire, and will provide less flexibility when Australian workers want more," said Innes Willox, Chief Executive of the Australian Industry Group.
"This is badly drafted legislation that is going to make it harder for employers to employ people who want to work when it suits them.
"It will reduce avenues for lifting productivity when we are about to convene a Roundtable on how to lift it.
"The Commission is already required by law to ensure that awards provide a fair safety net of terms and conditions and in doing so is required to consider the need for employees to receive additional remuneration for working unsociable hours, such as on weekends and public holidays.
"The Government should be encouraging the Commission to consider how it can simplify and improve our notoriously outdated and unworkable award system. Sadly this Bill instead proposes to tie the Commission's hands.
"The Government should be actively working to improve the minefield of technicalities and complexities that our award system has become. Instead, it is moving to set the current provisions in stone.
"Given drafting deficiencies in the Bill, it could have significant unintended consequences for industry. There is a real risk that it could result in longstanding award provisions being changed. At the very least it will hamper the Commission's ability to change awards even if there is a compelling reason to do so.
"All members of Parliament need to carefully consider the technical detail of the legislation and we urge the Government to be open to making sensible amendments.
"There is also a very real risk that the amendments will hamper efforts by the Commission to implement changes to awards in the interest of all parties. This includes, in particular, current proceedings commenced by the Commission which are considering varying the Clerks Award to remove terms that create impediments to employers and employees implementing working from home arrangements.
"The legislation should be amended to ensure that it doesn't interfere with the conduct of these proceedings. The last thing the Government should be doing is making it harder for employers and employees to implement working from home arrangements that suit both parties," Mr Willox said.