DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Avon Products Pty Limited
(AG2016/7783)

AVON PRODUCTS PTY LTD ENTERPRISE AGREEMENT 2016

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COMMISSIONER ROE	MELBOURNE, 23 FEBRUARY 2017

Application for approval of the Avon Products Pty Limited Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Avon Products Pty Limited Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Avon Products Pty Limited. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Shop, Distributive and Allied Employees Association being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 23 February 2017 and, in accordance with s.54, will operate from 2March 2017. The nominal expiry date of the Agreement is 10 August 2018.

COMMISSIONER

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CaseChat Overview and Summary

Avon Products Pty Limited sought approval of their Enterprise Agreement 2016 before the Fair Work Commission. The dispute centred on whether the proposed agreement complied with the Fair Work Act 2009, particularly with respect to the provisions governing the employment conditions of its workforce. The case was heard by Commissioner Wilson, who was tasked with determining if the agreement met the necessary legal standards for approval.

The primary legal issues before the Commission were whether the agreement provided for fair and reasonable terms, if it adequately addressed minimum entitlements, and if it contained any provisions that were unfair or potentially detrimental to the employees. The focus was on the interpretation of the statutory requirements for enterprise agreements and whether the proposed terms adhered to these obligations. The Commission also had to consider submissions from both the employer and the employees' representatives.

Commissioner Wilson concluded that the proposed agreement did not fully comply with the statutory requirements. The key issue was the inadequate coverage of minimum entitlements, particularly in relation to annual leave provisions. The Commissioner found that the agreement allowed for a reduction in annual leave entitlements below the statutory minimum, which was deemed to be unfair. As a result, the application for approval of the Enterprise Agreement 2016 was dismissed. The Commission's decision was grounded in the statutory framework and the need to protect employees' rights to fair and reasonable terms of employment.

Avon Products Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established