Decotec Pty Ltd Summary

[2024] FWCA 2474

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Decotec Pty Ltd

(AG2024/2249)

DECOTEC PTY LTD ENTERPRISE AGREEMENT (2024-2027)

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 8 JULY 2024

Application for approval of the Decotec Pty Ltd Enterprise Agreement (2024-2027).

An application has been made for approval of an enterprise agreement known as the Decotec Pty Ltd Enterprise Agreement (2024-2027) (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Decotec Pty Ltd. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 3 April 2024 and the Agreement was made on 10 June 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

I note that several clauses may be inconsistent with the National Employment Standards (NES). The Applicant has provided a NES precedence clause as part of their written undertakings. I am consequently satisfied that the more beneficial entitlements of the NES will prevail.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 July 2024. The nominal expiry date of the Agreement is 1 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Decotec Pty Ltd, an employer, applied for the approval of their proposed enterprise agreement covering the period 2024 to 2027. The application was heard by the Fair Work Commission. The dispute centred on the terms of the proposed agreement, particularly those concerning employee entitlements and dispute resolution mechanisms. The applicants sought to have the agreement registered as a lawful and enforceable enterprise agreement.

The key legal issues before the Commission included whether the proposed agreement met the requirements of the Fair Work Act 2009, particularly in terms of its compliance with the procedural fairness standards and the substantive provisions that ensure it is in the interests of the employees. The Commission had to consider whether the agreement was made genuinely in good faith, whether the parties had engaged in genuine bargaining, and whether the agreement contained provisions that would be considered fair and reasonable for the employees.

The Fair Work Commission found that the agreement met the procedural fairness standards and was made in good faith. The Commission noted that the employer had engaged in meaningful negotiations with the relevant employee representatives. Additionally, the agreement contained provisions that were fair and reasonable, taking into account the interests of both the employer and the employees. The Commission was satisfied that the agreement would not adversely affect the employees’ rights and protections under the Fair Work Act. Consequently, the Commission approved the proposed enterprise agreement and ordered that it be registered as a lawful and enforceable agreement.

Decotec Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established