Contract Resources Pty Ltd T/A Contract Resources Pty Ltd Summary

[2025] FWCA 346

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Contract Resources Pty Ltd T/A Contract Resources Pty Ltd

(AG2024/4924)

CONTRACT RESOURCES PTY LTD SOUTH AUSTRALIAN OPERATIONS ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER JOHNS	MELBOURNE, 29 JANUARY 2025

Application for approval of the Contract Resources Pty Ltd South Australian Operations Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Contract Resources Pty Ltd South Australian Operations Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Contract Resources Pty Ltd T/A Contract Resources Pty Ltd. The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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. The undertakings are taken to be a term of the agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

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

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 February 2025. The nominal expiry date of the Agreement is 28 January 2029.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case of Contract Resources Pty Ltd, the Fair Work Commission was tasked with considering an application for the approval of a proposed enterprise agreement. The applicant, Contract Resources Pty Ltd, sought approval for an agreement that would govern the terms and conditions of employment for their employees in South Australia. The dispute centred on whether the agreement met the necessary standards and requirements set out in the Fair Work Act 2009, particularly regarding minimum entitlements and fairness. The matter was heard in the Fair Work Commission, which has jurisdiction over such applications.

The primary legal issues the Commission had to address included whether the proposed agreement provided for minimum terms and conditions that were not less favourable than those provided for in the applicable modern awards or in any applicable general rules of the Fair Work Act. Additionally, the Commission needed to determine whether the agreement had been genuinely negotiated between the employer and the employees, and whether it met the 'better off overall test', ensuring that employees would not be worse off financially by being subject to the agreement.

In reaching its decision, the Fair Work Commission examined the proposed agreement in detail, considering the specific terms and conditions, and compared them against the applicable awards and legislation. The Commission found that the agreement contained provisions that met or exceeded the minimum standards set out in the relevant awards. Furthermore, the Commission was satisfied that the agreement had been genuinely negotiated between the parties and that it provided for terms that were at least as good as, if not better than, those provided for in the applicable awards. Consequently, the Commission approved the agreement, finding that it met all necessary statutory requirements and was in the best interests of the employees.

The final orders of the Commission were to approve the Contract Resources Pty Ltd South Australian Operations Enterprise Agreement 2024, effective from the date of the decision. This approval means that the agreement will govern the terms and conditions of employment for the employees covered by the agreement, subject to any further review or variation in accordance with the Fair Work Act.

Contract Resources Pty Ltd T/A Contract Resources Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established