It sets up a fight with the union movement,which regards the changes as a major attack on workers akin to the Howard government's controversial WorkChoices laws.
Employer groups and Attorney-General Christian Porter argue it will get enterprise bargaining,which has been in decline for much of the past decade and has historically led to higher wages,back on track to ensure businesses and workers can strike pay deals to suit their individual needs.
About 2.1 million Australians or 20 per cent of the workforce are currently paid under enterprise agreements,down from a peak of 2.6 million or 23 per cent in 2010,despite population growth in the interim.
Mr Porter,who is also Industrial Relations Minister,said the enterprise bargaining system had been originally designed by Labor prime minister Paul Keating to make it easy for both sides to strike bargains in their mutual interest but been bogged down since.
"The government's reforms aim to restore Keating's vision by making the bargaining system easier to engage with,faster,more efficient and,most importantly,capable of delivering those twin goals of productivity growth and higher wages,"Mr Porter said.
Under the new law to be introduced to Parliament on Wednesday,an existing but rarely used power for the Fair Work Commission to tick off agreements that leave workers worse off to deal with a"short-term crisis"will be broadened for two years. Pay deals that leave workers worse off will be approved if employees vote for them and they are in the"public interest",based on factors including the impact of COVID-19 and the company's circumstances.