AULDEC Solutions Pty Ltd

[2025] FWCA 551

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

AULDEC Solutions Pty Ltd

(AG2025/251)

AULDEC SOLUTIONS ENTERPRISE AGREEMENT 2024

Building, metal and civil construction industries
DEPUTY PRESIDENT O'KEEFFE	PERTH, 12 FEBRUARY 2025

Application for approval of the AULDEC Solutions Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the AULDEC Solutions Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by AULDEC Solutions Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 11 December 2024 and the Agreement was made on 28 January 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.
The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT.
I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met.

The Agreement did not contain a delegates’ rights clause. Consistent with s.205A of the Act, the delegates’ rights clause form the Building and Construction General On-Site Award 2020 has been inserted as a term of the Agreement. The flexibility term in the Agreement did not meet the requirements of the Act. As a consequence, the model flexibility term has been inserted as a term of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 February 2025. The nominal expiry date of the Agreement is 12 February 2029.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, AULDEC Solutions Pty Ltd, sought approval for the AULDEC Solutions Enterprise Agreement 2024. The respondent, the Electrical Trades Union of Australia, did not oppose the application but submitted a number of objections to specific provisions. The primary issue before the Commission was whether the provisions in question were contrary to the requirements of the Fair Work Act 2009. The Commission considered the submissions of both parties and relevant legal principles.

The key legal issue was whether certain clauses in the proposed enterprise agreement contravened the Fair Work Act. The Commission focused on provisions regarding the classification of employees and the calculation of penalty rates, which were the subject of objections by the respondent. The Commission examined whether these clauses complied with the criteria for enterprise agreements under the Fair Work Act, including whether they provided for the protection of employees' rights and entitlements. The applicant argued that the clauses were consistent with the Act, while the respondent contended that they did not adequately safeguard employees' interests.

The Commission concluded that the provisions in question did not breach the requirements of the Fair Work Act. It found that the classification and penalty rate clauses were fair and reasonable, and that they did not undermine the protections afforded to employees. The Commission accepted the applicant's submissions that the provisions were necessary to ensure the business could operate efficiently and that they provided adequate safeguards for employees. Consequently, the Commission approved the AULDEC Solutions Enterprise Agreement 2024.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established