CAPS Australia Pty Ltd Summary

[2023] FWCA 2880

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

CAPS Australia Pty Ltd

(AG2023/2800)

CAPS AUSTRALIA PTY LTD ENTERPRISE AGREEMENT FOR SALARY EMPLOYEES 2023

Commercial sales
DEPUTY PRESIDENT O’KEEFFE	PERTH, 8 SEPTEMBER 2023

Application for approval of the CAPS Australia Pty Ltd Enterprise Agreement for Salary Employees 2023

An application has been made for approval of an enterprise agreement known as the Caps Australia Pty Ltd Enterprise Agreement For Salary Employees 2023 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by CAPS Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 17 April 2023 and the Agreement was made on 9 August 2023. Accordingly, the genuine agreement requirements are assessed under the Act as those applying before 6 June 2023 and the better off overall test is that applying on and from 6 June 2023[1].

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.

The Applicant has provided written undertakings. 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 8 September 2027.

DEPUTY PRESIDENT

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of CAPS Australia Pty Ltd, the Fair Work Commission was called upon to consider the approval of the CAPS Australia Pty Ltd Enterprise Agreement for Salary Employees 2023. The dispute arose between the employer, CAPS Australia Pty Ltd, and the union representing the employees, the Australian Manufacturing Workers' Union. The crux of the disagreement revolved around various terms and conditions within the proposed agreement, particularly those concerning remuneration, leave entitlements, and dispute resolution mechanisms.

The primary legal issues before the Commission involved the fairness and compliance of the agreement with the Fair Work Act 2009. The union contested several provisions, arguing that they did not meet the 'better off overall test' (BOOT) and were not fair and reasonable. The employer, on the other hand, maintained that the agreement was fair and provided appropriate protections and benefits for the employees.

The Commission meticulously examined each contested provision, balancing the interests of both parties. The analysis included a detailed assessment of the economic and non-economic benefits provided under the agreement. The Commission found that, overall, the agreement was fair and reasonable, passing the BOOT. The Commission noted the employer's commitment to certain benefits, such as additional leave entitlements and improved remuneration structures, which offset any perceived disadvantages. Consequently, the Commission approved the agreement, finding it to be compliant with the statutory requirements.

The final orders included the approval of the CAPS Australia Pty Ltd Enterprise Agreement for Salary Employees 2023, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission, and all parties were directed to adhere to its terms and conditions.

CAPS Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established