Labor has struck a deal with the cross bench to split its industrial relations reform in two parts, enabling extra protections for workers to pass before the end of the year.
But while unions have celebrated the move, a peak mining body warns it could prove the "tipping point" for pushing the economy into recession.
Workplace Relations Minister Tony Burke on Thursday announced the government had secured the support of crossbenchers Jacqui Lambie and David Pocock to support key parts of the "closing loopholes" legislation.
He said the existing bill will be divided into two, with measures not being supported on Thursday to be looked at next year.
"I'm even more optimistic about those remaining provisions because of ... the goodwill and good intentions of the cross bench," Mr Burke said.
Greens leader Adam Bandt said his party would support the legislation after the government agreed to criminalise underpayment of superannuation.
"(We) would have liked to have seen more protections for casual and gig workers before Christmas, but there's some important wins in this bill," he said.
The union for coal miners said thousands of labour hire workers would celebrate the decision, but the Minerals Council of Australia branded the legislative change "economic vandalism".
"By rushing controversial workplace changes through the Senate, the government has dramatically increased the cost of doing business in Australia, costs that will undoubtedly flow through to consumers, in the midst of a cost of living crisis," the peak body said in a statement.
"This is what the government today wrote into law: higher costs for all.
"It will render some mining projects and developments unviable, costing jobs and opportunity. It threatens to bring down the shutters on project extensions and expansions. And while nations clamber for access to critical minerals to build the clean energy technology required for net zero, this weakens Australia's international competitiveness, pushing customers to other markets."
The union said the legislation's same job same pay provisions provide a mechanism to prevent companies paying labour hire workers less than permanent employees doing the same job where an enterprise agreement is in place at the work site.
"Labour hire exploitation is out of control in the mining industry and workers have been raising this issue for many years," Mr Kelly said.
"It is a relief to have a government who has listened to workers' concerns and developed targeted legislation in response.
"We thank those Senators who have seen through the big mining companies' multi-million dollar BS and supported a fair go for Aussie workers."
Central Queensland labour hire mineworker Brodie Allen said passage of Same Job Same Pay through the Parliament would make labour hire workers feel valued.
"There are thousands of workers like me who have been labour hire for years. We've been treated as second class citizens for too long. This is a great day, because we now have laws to stop big mining companies paying us less than the permanent workers beside us.
"It's a fantastic Christmas present for Australian workers."
