The majority of the Senate crossbench has voted with the federal opposition to pass a bill to prevent cuts to Sunday penalty rates.
Senators from the Greens, One Nation and the Nick Xenophon Team all voted with Labor, as did independents Derryn Hinch and Jackie Lambie.
The legislation is designed to overturn last month's Fair Work Commission decision to reduce the Sunday penalty rates of workers in hospitality, retail and fast food.
The bill was moved by Labor senator Doug Cameron. Because the bill originated in the Senate, it will now head to the House of Representatives, where the government is likely to use its slim majority to vote it down.
Senator Cameron told reporters he hoped a Nationals MP would break ranks and cross the floor over the bill.
"I would hope that someone in the National Party, at least in the lower house, would understand that what this bill does is protect workers in National Party seats," Senator Cameron said.
Independents David Leyonhjelm and Cory Bernardi joined the Coalition in voting against the bill, which passed 37 votes to 26.
Senator James Paterson said the bill threatened the independence of the Fair Work Commission, arguing it should be allowed to set penalty rates as it sees fit.
"The union movement and the Labor party are only willing to accept decisions of the independent umpire ... if they are decisions that they agree with," Senator Patterson said.