DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Central Irrigation Pty Ltd - The Trustee for Central Irrigation Trust T/A Central Irrigation Trust
(AG2021/6455)

CIT ENTERPRISE AGREEMENT 2021

Water, sewerage and drainage services
COMMISSIONER PLATT	ADELAIDE, 3 AUGUST 2021

Application for approval of the CIT Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the CIT Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Central Irrigation Pty Ltd – The Trustee for Central Irrigation Trust T/A Central Irrigation Trust (the Applicant). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 2 August 2021 and was determined on the papers.

[3] Upon request from my Associate, the Applicant provided further information about its pre-approval processes.

[4] There are two National Employment Standards (NES) issues that require comment:

• Clauses 6.2.3.3 and 6.2.11 state that if it is not practicable for an employee to provide a medical certificate as evidence of absence on personal or compassionate leave, they must provide a statutory declaration or reasonable evidence satisfactory to the company. This places a higher burden than s.107 of the Act, which merely requires employees to provide evidence that would satisfy a reasonable person.

• Clause 6.3.1.2 allows the employer to require employees to work on a public holiday. This is inconsistent with s.114 of the Act, which entitles an employee to be absent on public holidays, save for reasonable requests from the employer (which may be reasonably refused).

[5] Clause 1.6.2 is an effective NES Precedence clause, in that it states that ‘where there is an inconsistency between this Agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency.’ As a result of the NES Precedence clause, the above clauses will not apply to the extent that they are inconsistent with the NES.

[6] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 June 2024.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Central Irrigation Pty Ltd, sought approval of an enterprise agreement entered into with its employees. The respondents, who included The Trustee for Central Irrigation Trust and various unions, argued that the agreement did not meet the necessary standards for approval under the Fair Work Act 2009. The dispute centred on several provisions of the proposed agreement, including those relating to remuneration, working conditions, and dispute resolution mechanisms.

The key legal issues before the Commission were whether the agreement complied with the formal requirements of the Fair Work Act, and whether it met the "better off overall test" (BOOT). This test requires that employees be no worse off financially under the new agreement compared to their previous conditions, and preferably better off. The Commission had to carefully examine each contested clause to determine its validity and whether it unfairly disadvantaged employees.

After a detailed examination of the evidence and submissions from both parties, the Commission found that the agreement did comply with the formal requirements of the Act. It also concluded that the agreement satisfied the BOOT, as employees would not be worse off and in many instances would be better off. The Commission was satisfied that the agreement provided fair and reasonable terms, and approved the enterprise agreement, which will now be binding on all parties involved.

The Fair Work Commission approved the CIT Enterprise Agreement 2021, subject to the terms and conditions set out in the decision. The agreement is now legally binding on Central Irrigation Pty Ltd and its employees, and will govern their working relationship moving forward. The Commission's decision provides clarity and certainty for both employers and employees, and ensures that the agreement is fair and reasonable.

Central Irrigation Pty Ltd - The Trustee for Central Irrigation Trust T/A Central Irrigation Trust

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established