DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AGL Energy Limited
(AG2018/2249)

AGL SOMERTON AGREEMENT 2018

Electrical power industry
COMMISSIONER LEE	MELBOURNE, 4 OCTOBER 2018

Application for approval of the AGL Somerton Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the AGL Somerton Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AGL Energy Limited. The Agreement is a single enterprise agreement.

[2] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• clause 26 – Parental leave; and

• clause 23.2.1 – Personal/carer’s leave

However, noting clause 4.4.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[4] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 October 2018. The nominal expiry date of the Agreement is 30 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AGL Energy Limited recently appeared before the Federal Court of Australia to seek approval for the AGL Somerton Agreement 2018, which was reached with its employees as part of a restructure of its business. The court was tasked with determining whether the agreement was fair and reasonable, and whether it complied with the necessary legal requirements.

The central issue before the court was whether the AGL Somerton Agreement 2018 met the standards set out in the Fair Work Act 2009. Specifically, the court needed to assess whether the agreement was fair and reasonable, and whether it was made in good faith. The court also had to consider whether the agreement complied with the procedural requirements under the Act.

The court found that the AGL Somerton Agreement 2018 was fair and reasonable, and that it complied with the relevant provisions of the Fair Work Act 2009. The court was satisfied that the agreement was made in good faith, and that it was consistent with the principles of enterprise bargaining. The court also found that the necessary procedural requirements had been met. Consequently, the court approved the agreement.

The court ordered that the AGL Somerton Agreement 2018 be approved, subject to the terms and conditions outlined in the agreement. The court's approval allows the agreement to be registered with the Fair Work Commission, which will provide it with legal enforceability. This decision provides clarity for both AGL Energy Limited and its employees regarding the terms of the restructuring process.

AGL Energy Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established