Australian Municipal, Administrative, Clerical and Services Union v Royal Automobile Club of Victoria (RACV) Ltd

The Australian Municipal, Administrative, Clerical and Services Union (the union) filed an application against Royal Automobile Club of Victoria (RACV) Ltd (the employer) regarding a dispute about the application of the annualised or averaged payment system under the RACV Roadside Assistance Centre Enterprise Agreement 2014-2017 (the Agreement). The matter was heard in the Fair Work Commission (the Commission). The union sought an order declaring that the employer contravened the Agreement by applying an averaged payment system rather than an annualised payment system for certain employees.

The key legal issue before the Commission was whether the employer was required to pay employees in accordance with an annualised payment system, as provided for in clause 14.1 of the Agreement, or whether an averaged payment system was permissible. The Commission needed to determine the correct interpretation of the relevant clauses and how they applied to the employees' entitlements.

The Commission found that the employer was required to apply an annualised payment system to calculate the employees' entitlements. The Commission determined that the language of the Agreement clearly specified that payments should be calculated on an annualised basis, and that the employer's interpretation of the clause as allowing for an averaged payment system was incorrect. The Commission held that the employer's application of an averaged payment system was a contravention of the Agreement. Consequently, the employer was ordered to pay the employees the correct amount in accordance with the annualised payment system and to take steps to rectify any underpayments made.

The Commission made orders that the employer must pay the affected employees the correct amount of wages in accordance with the annualised payment system, and to take steps to rectify any underpayments. Additionally, the employer was ordered to provide a written apology to the affected employees.