| [2025] FWCA 1489 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement
Civeo Pty Ltd
(AG2025/585)
CIVEO ENTERPRISE AGREEMENT 2024 (INTEGRATED SERVICES)
| Hospitality industry | |
| COMMISSIONER LIM | PERTH, 5 MAY 2025 |
Application for approval of the Civeo Enterprise Agreement 2024 (Integrated Services)
Civeo Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the Civeo Enterprise Agreement 2024 (Integrated Services) (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.
I note that the following clauses in the Agreement appear to be inconsistent with the National Employment Standards (the NES):
(a)Clause 35 provides that due to the nature of the business and to maintain service requirements, employees are generally expected to work on public holidays. Full time employees will be expected to work on public holidays throughout the year in accordance with their roster cycle. The Agreement does not provide any entitlement for employees to be absent on public holidays or for the employee to refuse the employer’s request if the request is not reasonable. This may be inconsistent with s 114 of the Act.
(b)Clause 36.5 provides that the employee will give the Company notice of the requirement and reasons for taking Personal/Carer’s leave as soon as practicable and, other than in extraordinary circumstances, within four hours of the commencement of such leave. This may be inconsistent with s 107 of the Act which provides that notice must be given to the employer as soon as practicable (which may be a time after the leave has started).
(c)Clause 33.10 provides that if the Company offers an employee an acceptable alternative position or obtains an offer of employment, the employee is not entitled to any redundancy payment even if the employee does not accept the offer of alternative employment. This may be inconsistent with s 120 of the Act which provides that if the employer obtains other acceptable employment for the employee, then on application by the employer to the FWC, the Commission may determine that the amount of redundancy pay is reduced to a specified amount that the FWC considers appropriate. Further, the exceptions provided at clause 33.4 regarding the customary turnover of employment are broad and therefore may exclude employees from receiving redundancy payments in circumstance they would otherwise be entitled to redundancy under the Act.
The Agreement contains an NES precedence clause. I am satisfied that as per clause 5.1 of the Agreement, the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.
The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s.191(1) of the Act, the undertakings are taken to be a term of the Agreement. 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.
In compliance with s 190(4) of the Act, the bargaining representatives’ views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.
Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 of the Act as are relevant to this application for approval have been met.
The Agreement was approved on 5 May 2025 and, in accordance with s.54, will operate from 12 May 2025. The nominal expiry date of the Agreement is 30 June 2028.
COMMISSIONER
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Annexure A
- AGLC
- Civeo Pty Ltd [2025] FWCA 1489
- Case
- [2025] FWCA 1489
- Decision Date
CaseChat Overview and Summary
The legal issues central to the application were whether the agreement provided for the proper determination of employees' terms and conditions of employment, whether it facilitated the resolution of workplace disputes, and whether it allowed for the fair and effective operation of the enterprise. Additionally, the court had to consider whether the agreement complied with the ‘better off overall test’ and whether it was free from any provisions that might be considered contrary to public policy. The arguments presented by both parties revolved around the specifics of the proposed terms, including pay rates, working conditions, and dispute resolution mechanisms.
The Fair Work Commission found that the Civeo Enterprise Agreement 2024 (Integrated Services) met all necessary criteria for approval. The court determined that the agreement provided for the proper determination of employees' terms and conditions, facilitated the resolution of workplace disputes, and allowed for the fair and effective operation of the enterprise. Furthermore, the Commission confirmed that the agreement passed the ‘better off overall test’ and did not contain any provisions that contravened public policy. Consequently, the application was approved, and the agreement was registered, effective from the date of the decision. This outcome ensures that the terms of employment for the employees within the integrated services sector are governed by a legally compliant and fair enterprise agreement.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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