Pauline Hanson's One Nation and Centre Alliance senators helped the government pass a measure providing a clearer pathway for casual employees to convert to permanent jobs.

Medium and large businesses must offer this conversion after 12 months of consistent work, or defend why it should not. Small businesses are exempt, but employees can request it.

Workers who are declared permanent will not be able to "double dip" and claim the lost entitlements for their time on casual wages.

Prime Minister Scott Morrison blamed the "obstruction" from the opposition and others in the Senate for not wanting to create jobs.

Only One Nation was willing to pass the full package of the legislation, including award simplification, long-term greenfields agreements and the enterprise bargaining reform that included suspension of the Better Off Overall Test.

"We have put forward sensible, modest measures that we think can make a real difference," Mr Morrison said.

In the Senate, acting IR minister Michaelia Cash was ditching most of those measures.

Mr Porter, who is expected to return from medical leave at the end of this month to his roles as attorney-general and industrial relations minister, worked on the reforms for "countless hours of consultations with employers and unions", the prime minister said.

"It won't deter us from seeking to create more jobs," Mr Morrison said.

The government also dropped measures to crack down on wage theft by employers, despite having broad support across the parliament.

Labor's Tony Burke called that removal "pure spite" from the government that had the numbers to pass it.

"Instead they decided to give wage thieves a free pass as part of a tantrum about losing other elements of the bill," Mr Burke said.

Labor opposed the casual job reform for not going far enough to protect workers.

"It means employers can now classify workers as a casual even if they work regular, predictable and permanent hours," Mr Burke said.

"That means employers can benefit from the certainty of a permanent worker - but they don't need to give them the benefits of permanent work like sick leave or annual leave."

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