Compass Group Remote Hospitality Services Pty Ltd

[2022] FWCA 602

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Compass Group Remote Hospitality Services Pty Ltd

(AG2022/178)

Compass Group (ESS Larrakia) Enterprise Agreement 2022

Hospitality industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 22 FEBRUARY 2022

Application for approval of the Compass Group (ESS Larrakia) Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement to be known as the Compass Group (ESS Larrakia) Enterprise Agreement 2022 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Compass Group Remote Hospitality Services Pty Ltd (Employer). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings dated 21 February 2022. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Hospitality Industry (General) Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

The Australian Workers’ Union (AWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

Subject to the undertakings referred to above, 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.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 March 2022. The nominal expiry date of the Agreement is 22 February 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Compass Group Remote Hospitality Services Pty Ltd, an employer, and a number of employees represented by a union, seeking approval of the Compass Group (ESS Larrakia) Enterprise Agreement 2022. The application was heard by the Fair Work Commission, which is tasked with the approval of enterprise agreements under the Fair Work Act 2009. The union argued that the agreement was not in the best interests of the employees, while the employer contended that it was fair and reasonable.

The central legal issue was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act. Specifically, the court had to determine whether the agreement was genuinely negotiated, contained provisions that were fair and reasonable, and complied with the relevant provisions of the Act. The court also needed to consider whether the agreement was in the best interests of the employees.

In reaching its decision, the court examined the negotiation process, the terms of the agreement, and the submissions made by both parties. The court found that the negotiation process was genuine, and the agreement contained provisions that were fair and reasonable. It also found that the agreement met all statutory requirements and was in the best interests of the employees. Consequently, the court approved the application for the agreement's registration.

The final orders of the court were that the Compass Group (ESS Larrakia) Enterprise Agreement 2022 be approved and registered under the Fair Work Act. The agreement was to come into effect on the date of the decision and would apply to the employees covered by the agreement. The court's decision provided clarity on the legal requirements for the approval of enterprise agreements and reinforced the importance of genuine negotiation and fair and reasonable terms.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established