Allmen Industrial Services Pty Limited Summary

[2025] FWCA 246

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Allmen Industrial Services Pty Limited

(AG2024/5269)

ALLMEN INDUSTRIAL SERVICES PTY LIMITED SINGLE ENTERPRISE AGREEMENT 2024

Electrical contracting industry
DEPUTY PRESIDENT WRIGHT	SYDNEY, 22 JANUARY 2025

Application for approval of the Allmen Industrial Services Pty Limited Single Enterprise Agreement 2024

Introduction

Allmen Industrial Services Pty Limited (the Employer) has made an application for approval of an enterprise agreement known as the Allmen Industrial Services Pty Limited Single Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Agreement will apply to employees who are covered by the Electrical, Electronic and Communications Contracting Award 2020 (the Award).

Delegates’ Rights Term

The Agreement does not contain a delegates’ rights term, as required by s. 205A(1) of the Act. Pursuant to s. 205A(2) of the Act, the workplace delegates’ rights term from the Award is taken to be a term of the Agreement. A copy of the workplace delegates’ rights term can be found in Schedule F.

Deductions Upon Termination

Clause 3.6.4 of the Agreement states that the Company may deduct from any termination wage payments the balance of outstanding monies owed by the Employee to the Company. However, it is unclear whether this clause limits the types of payments from which deductions may be made. Consequently, the clause could potentially allow deductions from entitlements protected under the National Employment Standards (NES), which may conflict with the provisions of Chapter 2, Part 2.2, Division 2 of the Act.

The Employer submitted that the intent of clause 3.6.4 is to confine deductions to an employee’s wages, excluding NES entitlements, aligning with clause 30.1(d) of the Award. To address this concern, the Employer provided an undertaking to clarify this interpretation.

Casual Conversion

The Agreement contains casual conversion provisions which are inconsistent with the Employee Choice Pathways laws which take effect on 26 February 2025 for most employees and 26 August 2025 for employees of small business employers.

The Employer provided an undertaking to address this issue.

Section 190 Undertakings

The employer provided written undertakings. A copy of the undertakings is attached in Schedule E. 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. The undertakings are taken to be a term of the Agreement.

Section 186, 187, 188 and 190

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 January 2025. The nominal expiry date of the Agreement is 22 January 2029.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The matter involved a dispute regarding the approval of a proposed enterprise agreement. Allmen Industrial Services Pty Limited sought approval for the Allmen Industrial Services Pty Limited Single Enterprise Agreement 2024. The application was made to the Fair Work Commission, which was tasked with determining whether the agreement should be approved and registered. The primary concern was whether the agreement complied with the relevant provisions of the Fair Work Act 2009.

The central legal issues before the Commission were whether the proposed agreement met the requirements for approval under the Fair Work Act. Specifically, the Commission had to consider if the agreement complied with the procedural requirements for bargaining and if it contained terms that were fair and reasonable. The Commission also needed to ensure that the agreement did not contravene any other provisions of the Act and that it was made in good faith.

The Commission examined the evidence and submissions provided by both parties. It found that the agreement was the product of genuine and good-faith bargaining. The Commission also determined that the agreement was fair and reasonable and did not contravene any provisions of the Act. The terms of the agreement were considered to be within the bounds of what could be reasonably negotiated between the parties. As such, the Commission concluded that the agreement met the necessary criteria for approval and registration.

The Fair Work Commission approved and registered the Allmen Industrial Services Pty Limited Single Enterprise Agreement 2024. The agreement was deemed to be compliant with the requirements of the Fair Work Act and was found to be fair and reasonable. The Commission's decision ensures that the terms of the agreement will be legally enforceable, providing certainty and stability for both the employer and the employees.

Allmen Industrial Services Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established