It was a move senators believed would protect foreign workers from exploitation on offshore oil rigs.
But instead the Senate is being accused of throwing countless workers into limbo by axing rules allowing skilled migrants to be temporarily employed on rigs in Australia's Exclusive Economic Zone.
The decision on Wednesday means the visas of these temporary workers may no longer be valid.
The Australian Greens moved the disallowance motion, claiming the temporary visas were allowing migrant workers to be exploited at the expense of Australian jobs.
Labor and the Palmer United Party supported the motion for similar reasons and the regulations were overturned in a vote.
But a resource industry employer group says the decision was "very ill-informed and ill-considered", accusing senators of wilfully ignoring the reality that these visas create jobs for Australians.
Australian Mines and Metals Association executive director Scott Barklamb said Australians working on offshore oil and gas rigs relied on their foreign colleagues.
"As of today, the work status of those international workers is unclear at best and prohibited at worst," he told AAP.
"At the stroke of a pen ... the Senate has thrown a significant number of Australian and international jobs into jeopardy."
Share
