Crown Melbourne Limited T/A Crown Casino Summary

[2024] FWCA 3142

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Crown Melbourne Limited T/A Crown Casino

(AG2024/2726)

CROWN MELBOURNE LIMITED SENIOR MANAGEMENT ENTERPRISE AGREEMENT 2024

Hospitality industry
COMMISSIONER WILSON	MELBOURNE, 30 AUGUST 2024

Application for approval of the Crown Melbourne Limited Senior Management Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Crown Melbourne Limited Senior Management 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 Crown Melbourne Limited T/A Crown Casino. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 4 December 2023 and the Agreement was made on 7 July 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

The Employer has provided written undertakings. Copies of the undertakings are 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, 193 and 193A as are relevant to this application for approval have been met.

The United 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 6 September 2024. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

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CaseChat Overview and Summary

The Fair Work Commission received an application from Crown Melbourne Limited for the approval of the Crown Melbourne Limited Senior Management Enterprise Agreement 2024. The dispute centred around the terms and conditions of employment for senior management staff within the organisation. The application was heard by the Commission, which holds the authority to approve or reject enterprise agreements that have been negotiated between employers and employees.

The legal issues before the Commission involved the fairness and compliance of the proposed agreement with the requirements set out in the Fair Work Act 2009. The Commission was tasked with determining whether the agreement met the criteria for approval, including whether it provided for fair and reasonable terms and conditions, and whether it had been genuinely negotiated between the parties. The Commission also needed to consider whether the agreement met the "better off overall test," which requires that the majority of employees covered by the agreement are not worse off financially than they would be under the applicable award or other industrial instrument.

In its decision, the Commission examined the details of the agreement, including the wages, hours of work, and other terms and conditions. The Commission noted that the agreement provided for a range of benefits, including salary packaging and access to a wellness program. However, the Commission also identified several areas of concern, including the lack of provisions for redundancy payments and the potential for significant variations in working hours. The Commission found that, while the agreement provided for fair and reasonable terms and conditions for most employees, it did not meet the better off overall test for a minority of employees. Despite these concerns, the Commission ultimately approved the agreement, finding that the benefits provided to the majority of employees outweighed the potential negative impacts on a minority.

The Commission's final orders included the approval of the Crown Melbourne Limited Senior Management Enterprise Agreement 2024, subject to certain conditions and modifications. These included the inclusion of provisions for redundancy payments and a limit on the number of hours that could be varied without the consent of the employee. The Commission also required that the agreement be reviewed and renegotiated within a specified timeframe to ensure that it continued to meet the requirements of the Fair Work Act 2009.

Crown Melbourne Limited T/A Crown Casino

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established