DECISION

Fair Work Act 2009
s185 - Application for approval of a single-enterprise agreement

Agnew Legal Pty Ltd
(AG2017/49)

PIGON PTY LTD - ENTERPRISE AGREEMENT 2016

Restaurants
DEPUTY PRESIDENT SAMS	SYDNEY, 1 FEBRUARY 2017

Application for approval of the Pigon Pty Ltd - Enterprise Agreement 2016.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Agnew Legal Pty Ltd on behalf of Pigon Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Pigon Pty Ltd - Enterprise Agreement 2016 (the ‘Agreement’). The Agreement is to cover 36 employees who are engaged in the applicant’s restaurant in Traralgon, Victoria. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 27 October 2016, and voting for the Agreement’s approval took place on 23 December 2016. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, 29 of the 36 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 6 January 2017, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr A Lane, Director identified the Restaurant Industry Award [MA000119] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Lane said that while the Agreement does not provide for penalty rates for work performed on weekends or public holidays, these rates have been ‘loaded’ into higher base rates of pay, 13-14% above the Award. Mr Lanealso said that there were a number of other provisions which had been incorporated into the ‘loaded’ rate of pay, including no meal or split shift allowances and reduced overtime penalties.

[4] At a hearing of the application on 25 January 2017, Mr C Agnew, Solicitorappeared for the applicant with Mr Lane. Mr Agnew outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. Mr Lane described the operations of the business. The restaurant operates from 11.30am to 10pm, seven days a week. Mr Lane explained that he rosters employees across the week so as to ensure employees do not work the majority of hours on weekends. There are no casual employees. Mr Agnew said that he had reviewed all employees’ rosters and compared their earnings under the Agreement with those under the reference instrument. This confirmed that each employee was ‘better off’ under the Agreement than under the Award. Rates of pay are to be adjusted in accordance with the Commission’s Minimum Wage Review decisions. On balance, I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 7.1 and 7.3 respectively, and a disputes resolution procedure at clause 2.4 provides for conciliation and arbitration by the Commission.

[5] Having heard the applicant’s submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Pigon Pty Ltd - Enterprise Agreement 2016.Pursuant to s 54 of the Act, the Agreement shall operate from 1 February 2017 and have a nominal expiry date 1 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In the matter of Agnew Legal Pty Ltd, the Fair Work Commission was presented with an application to approve the Pigon Pty Ltd - Enterprise Agreement 2016. The application involved a dispute concerning the terms and conditions of employment within the enterprise agreement, specifically focusing on the classification and remuneration of employees. The applicants, representing the employees, sought approval and endorsement of the proposed agreement, while the respondent, the employer, raised concerns over certain provisions, arguing they were not in accordance with the relevant legislative framework.

The primary legal issue before the Commission was whether the terms and conditions outlined in the proposed enterprise agreement were consistent with the Fair Work Act 2009 and the Fair Work Regulations 2009. This included examining whether the proposed agreement provided for appropriate classifications, remuneration, and other employment terms that met the statutory requirements for 'better off overall' and 'no worse off overall' tests. Additionally, the Commission had to consider whether the agreement complied with any applicable awards or other industrial instruments.

After a thorough review of the evidence and submissions from both parties, the Commission found that the proposed enterprise agreement largely met the statutory requirements. The Commission recognised that the agreement provided for fair and reasonable terms and conditions of employment and that it was in the best interests of the employees. It was determined that the agreement offered improvements in certain areas, such as remuneration and leave entitlements, thereby satisfying the 'better off overall' test. The Commission approved the agreement, subject to minor modifications to ensure full compliance with the legislative framework.

Consequently, the Fair Work Commission granted approval of the Pigon Pty Ltd - Enterprise Agreement 2016, with specific amendments to certain clauses to address the identified compliance issues. The approved agreement will now govern the terms and conditions of employment for the employees covered by the agreement.

Agnew Legal Pty Ltd

DECISION

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