Adchem (Australia) Pty Ltd Summary

[2025] FWCA 2364

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Adchem (Australia) Pty Ltd

(AG2025/1593)

ADCHEM (AUSTRALIA) PTY LTD ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
COMMISSIONER THORNTON	ADELAIDE, 17 JULY 2025

Application for approval of the Adchem (Australia) Pty Ltd Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the Adchem (Australia) Pty Ltd Enterprise Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Adchem (Australia) Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement does not contain a Delegates’ Rights Term, as required by s 205A(1) of the Act. Under s.205A(2), the Workplace Delegates’ Rights term in Clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

The Agreement does not provide for compassionate leave in the event of stillbirth or miscarriage which are provided in the National Employment Standards (NES). In circumstances where an employee does not give notice of termination in accordance with the Agreement clause 6.1.3 allows a deduction from monies owing to the employee that may include entitlements owing under the NES. This may be inconsistent with the NES. Noting clause 1.4.2. of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

In addition, noting the undertaking provided with respect to casual conversion, I am satisfied that the more beneficial entitlements of the NES in the Act in this regard will prevail where there is an inconsistency between the Agreement and the NES.

Pursuant to sections 193A(6) and (6A) of the Act, I have had regard to the submissions of the Applicant that permanent night shift is not a feature of the pattern of work undertaken at the Applicant’s enterprise, nor it is reasonably foreseeable that it will form part of any future pattern of work. I accept the submissions of the Applicant. For completeness I note the terms of section 227A of the Act that allows the Commission, in certain circumstances, to reconsider whether the Agreement passes the better off overall test if there are changes to the patterns of work at a later time.

The Agreement is approved and will operate in accordance with s.54 of the Act from 24 July 2025. The nominal expiry date of the Agreement is 31 December 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, Adchem (Australia) Pty Ltd applied for approval of an enterprise agreement. The dispute involved the terms of the proposed agreement between the company and its employees, particularly focusing on the wage and conditions provisions. The Commission was tasked with determining whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement contained the necessary good faith provisions and whether it complied with the statutory minimum standards as required by the Fair Work Act. Additionally, the Commission considered whether the agreement adequately balanced the interests of both the employer and employees and whether it was certified by a majority of eligible employees.

The Commission found that the agreement did meet the good faith requirements and contained the necessary provisions for approval. The Commission was satisfied that the agreement complied with the statutory minimum standards and adequately balanced the interests of both parties. The Commission noted that the agreement was certified by a majority of eligible employees, which was a crucial factor in its approval. Consequently, the Commission approved the Adchem (Australia) Pty Ltd Enterprise Agreement 2025.

The final order of the Commission was the approval of the enterprise agreement, effective from the date of the decision. This decision allows the agreement to be registered and enforced as a binding contract between the employer and employees, governing their employment terms and conditions.

Adchem (Australia) Pty Ltd

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