DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Bon Electrics Pty Ltd T/A Bon Electrics
(AG2020/1247)

BON ELECTRICS PTY LTD T/A BON ELECTRICS ENTERPRISE AGREEMENT 2019-2023

Electrical contracting industry
COMMISSIONER YILMAZ	MELBOURNE, 20 MAY 2020

Application for approval of the Electrics Pty Ltd t/a Bon Electrics Enterprise Agreement 2019-2023.

[1] An application has been made for approval of an enterprise agreement known as the Electrics Pty Ltd t/a Bon Electrics Enterprise Agreement 2019-2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Bon Electrics Pty Ltd T/A Bon Electrics. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 3.5.5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Agreement is approved and in accordance with s.54, will operate from 27 May 2020. The nominal expiry date of the Agreement is 19 May 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Bon Electrics Pty Ltd, trading as Bon Electrics, and its employees, represented by the Electrical Trades Union of Australia. The dispute pertained to the application for the approval of the Enterprise Agreement 2019-2023. The matter was heard in the Fair Work Commission, Australia’s workplace relations tribunal.

The central legal issue the court had to address was whether the Enterprise Agreement satisfied the requirements set out in the Fair Work Act 2009. Specifically, the court needed to determine if the agreement met the “better off overall test” which mandates that the agreement must provide employees with no less benefit than they would receive under the applicable award or safety net. Additionally, the court had to ensure the agreement complied with the procedural fairness requirements.

The Fair Work Commission found that the Enterprise Agreement was compliant with the statutory requirements. The agreement was approved as it provided employees with benefits that were no less favourable than what they would receive under the applicable award. The Commission also concluded that the agreement had been made in accordance with the procedural fairness requirements. As such, the application for approval was successful.

Consequently, the Fair Work Commission approved the Enterprise Agreement 2019-2023 between Bon Electrics Pty Ltd and its employees. The agreement, which outlines the terms and conditions of employment for the specified period, is now legally binding on both parties.

Bon Electrics Pty Ltd T/A Bon Electrics

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established