Penalty rates likely focus of hearing

Employment Minister Eric Abetz is expected to be grilled on the government's plans for penalty rates and the minimum wage when he fronts a Senate estimates hearing in Canberra.

Earlier this week, Senator Abetz said the government wouldn't touch penalty rates or the minimum wage, regardless of what a Productivity Commission inquiry into the industrial relations system recommends.

That contradicted Prime Minister Tony Abbott, who has said he could seek a mandate for changes to penalty rates at the 2016 election.

Labor and the Greens have demanded Senator Abetz explain the government's position, and it is likely to be a major focus of Senate estimates hearings into the employment portfolio on Thursday.

Penalty rates, the minimum wage and unfair dismissal laws are among the issues being reviewed by the Productivity Commission, which will report back to the coalition in November.