Permanent part-time workers will be able to negotiate extra hours without overtime under the latest plank of the coalition's industrial relations reforms.
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Retail, accommodation and food services employers and employees could agree for more work to be done without overtime penalties under the "part-time flex" model.
Industrial Relations Minister Christian Porter believes the increased flexibility will help address the twin crises of unemployment and underemployment.
He told parliament retail would be the sector that would benefit most.
"They'll be able to have more permanent part-time staff employed rather than needing to achieve that flexibility with the employment of casuals, and give more hours to those permanent part-time staff," Mr Porter said.
Labor's industrial relations spokesman Tony Burke said the proposal wasn't the government's worst idea.
But he's concerned part-time workers could be allotted 12 to 15 hours a week, with the remainder of their job effectively made casual.
"Our test on everything will be whether or not what the government puts forward delivers secure jobs with decent pay," Mr Burke told reporters in Canberra.
The arrangements are included in the Morrison government's industrial relations omnibus bill which will be introduced to parliament on Wednesday.
It also introduces a criminal offence for wage theft carrying a penalty of up to four years' jail for individuals and fines of $1.1 million.
Businesses would be liable for penalties up to $5.5 million.
ACTU secretary Sally McManus warned the federal law could override stronger provisions in Queensland, Victoria and the ACT.
"We do not support the high bar set for criminal offences, it is unlikely any employer will ever be caught," she said.
Changes to casual employment have also emerged as a key flashpoint in the legislation, with Labor and unions accusing the government of taking away workers' rights.
Long-life deals on major mining and infrastructure projects - known as greenfields agreements - are being reformed to ward off threats of industrial action.
The better off overall test linked to enterprise bargaining is set for changes, while the Fair Work Commission is expected to have a new deadline for agreement approvals.
Award simplification will also be included in the bill, along with more money for the workplace watchdog.
Meanwhile, Labor is set to support a second piece of legislation allowing union demergers.
That bill is aimed at breaking up the troubled Construction, Forestry, Maritime, Mining and Energy Union.
Under current arrangements, members are not allowed to vote on breaking off divisions until five years after a merger.
Labor is expected to support criminality or unlawfulness as a trigger for demergers but seek to change the bill if it has a broader scope.
Australian Associated Press
