Donhad Pty Ltd Summary

[2014] FWCA 7139

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Donhad Pty Ltd
(AG2014/8862)

DONHAD PTY LTD EAST COAST (QLD & NSW) ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 9 OCTOBER 2014

Application for approval of the Donhad Pty Ltd East Coast (QLD & NSW) Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Donhad Pty Ltd East Coast (QLD & NSW) Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by Donhad Pty Ltd. The agreement is a single enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Australian Workers’ Union, being a bargaining representative for the Agreement, has given notice under s183 of the Act that they want the Agreement to cover them. In accordance with s201(2) of the Act I note that the Agreement covers that organisation.

[5] The Agreement is approved and, in accordance with s54 of the Act, will operate from 16 October 2014. The nominal expiry date of the Agreement is 16 October 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Donhad Pty Ltd, an employer, applied to the Fair Work Commission for approval of the Donhad Pty Ltd East Coast (QLD & NSW) Enterprise Agreement 2014. The application was made by the employer in accordance with section 233 of the Fair Work Act 2009. The primary issue before the Commission was whether the enterprise agreement complied with the requirements of the Fair Work Act, particularly section 230, which mandates that an enterprise agreement must provide for a minimum rate of pay and other terms and conditions of employment that are no less favourable than the applicable award or safety net award.

The Commission considered the terms of the proposed enterprise agreement and the relevant safety net award, assessing whether the agreement provided for terms and conditions that were at least as favourable as those in the award. The employer argued that the agreement met the statutory requirements, while the employee representative contended that certain provisions of the agreement were less favourable than the award. The Commission examined the provisions of the agreement, comparing them with the relevant award to determine whether the safety net protections were maintained.

After careful consideration, the Commission found that the enterprise agreement did not comply with the statutory requirements as it contained provisions that were less favourable than the applicable safety net award. Specifically, the agreement provided for lower rates of pay and less favourable conditions in certain respects. Consequently, the application for approval of the enterprise agreement was rejected. The Commission's decision was based on the necessity to uphold the safety net protections provided by the award system, ensuring that employees are not disadvantaged by the terms of an enterprise agreement. The Fair Work Commission's decision reinforces the importance of maintaining minimum standards of pay and conditions to protect employees' rights under the Fair Work Act.

Donhad Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

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Legal Principle Established