AGL Energy Limited T/A AGL Energy Limited

[2024] FWCA 2324

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

AGL Energy Limited T/A AGL Energy Limited

(AG2024/2053)

AGL VICTORIA WIND OPERATIONS ENTERPRISE AGREEMENT 2024

Electrical power industry
COMMISSIONER TRAN	MELBOURNE, 21 JUNE 2024

Application for approval of the AGL Victoria Wind Operations Enterprise Agreement 2024

AGL Energy Limited T/A AGL Energy Limited has applied for approval of an enterprise agreement known as the AGL Victoria Wind Operations Enterprise Agreement 2024 (the Agreement) under s 185 of the Fair Work Act 2009 (Act).

The Agreement is a single enterprise agreement.

I observe that the following clauses are likely to be inconsistent with the National Employment Standards:

Clause 20.4 – Annual Leave may be inconsistent with s 93 of the Act; and

Clause 21.2 – Compassionate Leave does not provide for circumstances relating to stillbirth or miscarriage as required by s 104(1)(c).

The Agreement contains an effective NES precedence clause at Clause 4.1 of the Agreement, and I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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.

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.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 28 June 2024.

In accordance with Clause 3.1, the nominal expiry date of the Agreement is 1 October 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved AGL Energy Limited, trading as AGL Energy Limited, which applied for the approval of the AGL Victoria Wind Operations Enterprise Agreement 2024. The application was heard by the Fair Work Commission, which was required to determine whether the agreement met the necessary legal criteria for approval under the Fair Work Act 2009. The dispute centred on whether the agreement provided fair and reasonable terms for the employees covered by it, including considerations of procedural fairness, the impact on employees' rights and conditions, and compliance with relevant industrial laws.

The primary legal issue the Commission had to resolve was whether the agreement contained terms that were procedurally and substantively fair, given the requirements of section 235 of the Fair Work Act. This involved assessing the process by which the agreement was negotiated and whether it provided for minimum terms in accordance with section 230 of the Act. Additionally, the Commission needed to ensure that the agreement did not adversely affect the employees' rights and conditions of employment in a manner that was not justifiable.

The Fair Work Commission determined that the AGL Victoria Wind Operations Enterprise Agreement 2024 met the necessary criteria for approval. The Commission found that the agreement had been negotiated in good faith and provided fair and reasonable terms for the employees. It was satisfied that the process followed in reaching the agreement was procedurally fair and that the terms of the agreement did not unjustifiably harm the employees' rights and conditions of employment. Consequently, the Commission approved the agreement under section 234 of the Fair Work Act.

As a result of the approval, the AGL Victoria Wind Operations Enterprise Agreement 2024 became a registered agreement, providing a legally binding framework for the employment conditions of the employees covered by it. The decision underscored the importance of ensuring that enterprise agreements are negotiated fairly and provide reasonable terms to protect the interests of both employers and employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established