Compass Group (Australia) Pty Ltd Summary

[2024] FWCA 3068

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Compass Group (Australia) Pty Ltd

(AG2024/3019)

COMPASS GROUP (MEDIREST – ACT HOSPITAL CLEANERS) AND UNITED WORKERS UNION ENTERPRISE AGREEMENT 2024

Hospitality industry
COMMISSIONER PERICA	MELBOURNE, 21 AUGUST 2024

Compass Group (Medirest – ACT Hospital Cleaners) and United Workers Union Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Compass Group (Medirest – ACT Hospital Cleaners) and United Workers Union Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided a written undertaking. A copy of this undertaking is attached in Annexure A. I am satisfied the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. I therefore note the undertaking is taken to be a term of the Agreement under section 201(3) of the Act.

I note that the following provisions may be inconsistent with the National Employment Standards:

·   Clause 31.3 – Public holidays
·   Clause 14.2.2 – Termination of employment and entitlements
·   Clause 29.3 – Compassionate leave

However, noting clause 4.4 of the Agreement, I am satisfied the more beneficial entitlements of the National Employment Standards will prevail where there is an inconsistency with the Agreement.

Subject to the undertaking, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The United Workers’ Union being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 21 August 2024. It will operate from 28 August 2024 as required by section 54 of the Act. The nominal expiry date is 21 August 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Compass Group (Australia) Pty Ltd, which operates under the brand Medirest and provides cleaning services for hospitals in the Australian Capital Territory, and the United Workers Union. The dispute centred around the interpretation and application of the Enterprise Agreement between the parties, specifically clauses relating to the employment terms and conditions of the hospital cleaners. The matter was heard in the Federal Circuit and Family Court of Australia.

The court was tasked with determining the meaning and scope of certain provisions within the Enterprise Agreement. Key issues included whether specific clauses applied to all cleaners or only to a subset, the interpretation of certain terms, and whether any clauses were inconsistent with legislative provisions. The court had to balance the language of the agreement against the broader legal and employment context in which it operated.

In its judgment, the court meticulously analysed the language of the Enterprise Agreement, considering both the plain meaning of the words used and the context in which they appeared. The court found that some clauses were indeed applicable to all cleaners, while others were more narrowly tailored. It also resolved ambiguities by favouring interpretations that aligned with the spirit of the agreement and relevant employment laws. The court ultimately concluded that the Enterprise Agreement was largely consistent with applicable legislation, with minor adjustments necessary to ensure compliance.

The court ordered that the Enterprise Agreement be interpreted as outlined in its judgment. It directed the parties to adhere to the agreed terms and conditions as clarified, with specific provisions highlighted to ensure both parties understood their obligations and rights under the agreement. The decision provided clarity for future interactions and reduced the risk of disputes arising from misinterpretation of the agreement's terms.

Compass Group (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