Epsilon Instrumentation Pty Ltd T/A Epsilon Instrumentation

[2022] FWCA 3182

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Epsilon Instrumentation Pty Ltd T/A Epsilon Instrumentation

(AG2022/3392)

Epsilon Instrumentation Pty Ltd (Valve & Calibration Services) Enterprise Agreement 2022

Electrical contracting industry
COMMISSIONER P RYAN	SYDNEY, 13 SEPTEMBER 2022

Application for approval of the Epsilon Instrument (Valve & Calibration) Enterprise Agreement 2022

Epsilon Instrumentation Pty Ltd (Employer) has made an application for approval of an enterprise agreement known as the Epsilon Instrumentation Pty Ltd (Valve & Calibration Services) Enterprise Agreement 2022 (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Section 190 Undertakings

The Employer 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

Section 186, 187, 188 and 190

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.

Model Flexibility Term

The Agreement does not contain a flexibility term that meets the requirements of s.203 of the FW Act. Pursuant to s.202(4) of the FW Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 20 September 2022. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case, Epsilon Instrumentation Pty Ltd, trading as Epsilon Instrumentation, applied to the Fair Work Commission for approval of the Epsilon Instrumentation (Valve & Calibration) Enterprise Agreement 2022. This application arose from negotiations between the employer and the employees represented by the Australian Manufacturing Workers' Union. The crux of the dispute was the terms and conditions of employment as outlined in the proposed agreement, with a focus on wage increases, penalty rates, and other employment provisions.

The central legal issue before the Commission was whether the agreement met the requirements of the Fair Work Act 2009, specifically if it provided for fair and reasonable terms and conditions of employment. The Commission had to consider if the proposed agreement was genuinely negotiated, if it provided for a minimum rate of pay and other terms and conditions that were no less favourable than the relevant award or safety net, and if it complied with the "better off overall test" (BOOT). This test ensures that the agreement would not disadvantage employees compared to their current conditions or the relevant award.

The Commission found that the agreement was genuinely negotiated and met the statutory requirements of the Fair Work Act. It concluded that the proposed agreement provided for fair and reasonable terms and conditions of employment, including appropriate wage increases and penalty rates. The Commission was satisfied that the agreement passed the BOOT and was, therefore, fair and reasonable in all its terms. Consequently, the application for approval was successful, and the Epsilon Instrumentation (Valve & Calibration) Enterprise Agreement 2022 was approved.

The Fair Work Commission ordered that the Epsilon Instrumentation (Valve & Calibration) Enterprise Agreement 2022 be approved and registered under the Fair Work Act 2009. This decision ensured that the agreement would be legally binding on both the employer and the employees from the date of approval. The approval process confirmed the legitimacy of the negotiated terms, providing clarity and certainty for all parties involved in the enterprise.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established