The Turnbull government has rejected a proposal to overturn the Fair Work Commission's decision to reduce Sunday penalty rates.
A Senate inquiry report released in October last year called for the decision to be overturned.
However, the government said in its formal response to the inquiry, tabled in parliament, it would leave penalty rate decisions to the independent umpire.
"In making its decision to reduce penalty rates for some workers in the hospitality and retail sectors, the commission considered evidence over a two-year period," the response said.
The penalty rate reduction would boost jobs in retail and hospitality services and allow the hours of existing workers to be extended.
The government also rejected a Greens proposal flagged in the inquiry report to set up a royal commission into penalty rate underpayment and wage theft.
It said new laws to protect vulnerable workers had already been introduced and more funding given to the Fair Work Ombudsman for enforcement.
However, the government "noted" a Nick Xenophon Team proposal in the inquiry report to provide greater transparency of payments made between unions and employers before votes occurred on enterprise bargaining agreements.
"There is merit in considering further policy options."
Legislation has already been introduced to ban corrupting benefits and force unions and companies to disclose any benefits received in connection with an EBA.
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