Adria Village Limited

[2024] FWCA 1882

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Adria Village Limited

(AG2024/1278)

ADRIA VILLAGE ENTERPRISE AGREEMENT 2023

Aged Care Industry
COMMISSIONER CRAWFORD	SYDNEY, 23 MAY 2024

Application for approval of the Adria Village Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Adria Village Enterprise Agreement 2023 (Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act). It has been made by Adria Village Limited (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 ss.186, 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.

Noting clause 8.2 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the FW Act will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Nursing and Midwifery Federation (ANMF) and the Health Services Union (HSU) lodged Form F18 statutory declarations giving notice under s.183 of the FW Act that they want the Agreement to cover them. In accordance with s.201(2) of the FW Act, I note the Agreement covers the ANMF and the HSU.

The Agreement is approved and will operate from seven days after approval in accordance with s.54 of the FW Act. The nominal expiry date of the Agreement is 1 August 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the court involved Adria Village Limited and its employees, concerning the approval of the proposed 2023 Enterprise Agreement. The application was brought before the Fair Work Commission (FWC) to seek approval of the agreement, which aimed to establish the terms and conditions of employment for the employees. The dispute arose due to disagreements between the parties regarding certain provisions within the proposed agreement, which necessitated judicial intervention to ensure compliance with the relevant legislative framework.

The primary legal issues before the court were whether the proposed agreement was a "good faith" bargaining outcome and if it complied with the statutory requirements outlined in the Fair Work Act 2009. The court was required to assess whether the agreement was made in good faith, taking into account the economic, social, and employment circumstances, and whether it contained the necessary minimum terms and conditions as stipulated by the Act. Additionally, the court needed to determine if the agreement was procedurally sound, including whether the proper consultation processes were followed and if the agreement was fairly reached.

The FWC thoroughly examined the evidence presented by both parties, including the bargaining history, the economic context, and the compliance of the agreement with the statutory requirements. The court found that the agreement was indeed the product of good faith bargaining, taking into consideration the economic environment and the reasonable needs of both parties. The FWC also determined that the agreement contained all the necessary minimum terms and conditions and was procedurally sound, as the proper consultation processes were followed. Consequently, the FWC approved the proposed Enterprise Agreement, finding it to be compliant with the relevant legislative framework.

In light of the findings, the FWC approved the Adria Village Enterprise Agreement 2023. The court emphasised the importance of good faith bargaining and compliance with the statutory requirements in reaching an agreement that is fair and reasonable for both parties. The approval of the agreement ensures that the terms and conditions of employment for the employees are established in accordance with the law, promoting harmonious industrial relations between the employer and the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established