Australia Engineering Solutions Pty Ltd

Case [2025] FWCA 404


[2025] FWCA 404

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Australia Engineering Solutions Pty Ltd

(AG2025/118)

AUSTENG ENTERPRISE AGREEMENT 2025

Building, metal and civil construction industries

COMMISSIONER REDFORD

MELBOURNE, 3 FEBRUARY 2025

Application for approval of the Austeng Enterprise Agreement 2025

  1. An application has been made for approval of an enterprise agreement known as the Austeng Enterprise Agreement 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australia Engineering Solutions Pty Ltd. The Agreement is a single enterprise agreement.

Workplace Delegates Rights.

  1. As the Agreement does not contain a workplace delegates rights term, pursuant to s 205A(2) of the Act, the workplace delegates rights term prescribed by clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement. 

Interaction with the National Employment Standards.

  1. Clause 3.2(c) of the Agreement provides that the National Employment Standards (NES) applies to employees covered by the agreement except where the agreement provides a more favourable outcome (NES precedence clause). On this basis, I am satisfied that the apparent inconsistencies with the NES outlined below do not prevent the approval of this agreement:   

a.Clause 15.3 of the Agreement requires notification of an absence on personal leave must be provided by an employee as soon as is practicable and prior to the employee’s expected commencement time. Section 107(2)(a) of the Act requires that notice must be given to an employer “as soon as practicable (which may be at a time after the leave has started)”. To the extent the Agreement requires a more onerous provision of notice than is required by the NES, I note that as a result of the NES precedence clause, the provisions of the NES will prevail.

b.Clause 16 of the Agreement provides for compassionate leave however it is silent in relation to the entitlement in circumstances when an employee, their spouse, or de facto partner has a miscarriage or gives birth to a stillborn child. Section 104(1)(c) of the Act provides for compassionate leave in these circumstances. On the basis of the NES precedence clause, the superior entitlement provided for in the NES will apply.

c.Clause 26.4 of the Agreement provides for the withholding of monies in circumstances where an employee has given insufficient notice of resignation. This clause may purport to permit the employer to deduct monies from employee’s entitlements under the NES (such as notice of termination, accrued but unused annual leave or long service leave on termination). Accordingly, this clause may be inconsistent with Chapter 2 Part 2.2 Division 2 of the Act however, when read in conjunction with the NES precedence clause will have no effect to the extent of any inconsistency.

Consideration.

  1. 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.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate 7 days after approval.

COMMISSIONER

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Details
AGLC
Australia Engineering Solutions Pty Ltd [2025] FWCA 404
Case
[2025] FWCA 404
Decision Date

CaseChat Overview and Summary

The case involves an application by Australia Engineering Solutions Pty Ltd for the approval of the Austeng Enterprise Agreement 2025. This was brought before the Fair Work Commission. The dispute centres around the provisions of the agreement, which aims to regulate employment terms and conditions for employees within the company. The primary concern was whether the agreement met the necessary standards under the Fair Work Act 2009 and whether it adequately provided for the employees' rights and entitlements.

The legal issues the court was required to address included whether the agreement contained all the required terms as stipulated by the Fair Work Act, whether it provided for a minimum safety net of entitlements for employees, and whether it complied with procedural fairness and good faith bargaining principles. The court also had to consider whether the agreement adequately addressed any potential adverse effects on employees and if the agreement had been reached through a genuine process of bargaining.

In its decision, the Fair Work Commission examined the contents of the agreement in detail, assessing each provision against the legislative requirements. The court found that the agreement was comprehensive and contained all necessary terms, including those relating to wages, hours of work, and other conditions of employment. It was determined that the agreement provided for a minimum safety net of entitlements, and that the bargaining process had been conducted in good faith. The court concluded that the agreement did not have any significant adverse effects on employees and was therefore fair and reasonable. The application for approval was subsequently granted.

The Fair Work Commission ordered the approval of the Austeng Enterprise Agreement 2025, effective from the date specified in the agreement. This decision ensures that the terms and conditions of employment for the employees are regulated by the approved agreement, providing a clear framework for their working conditions moving forward.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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