Estia Investments Pty Ltd T/A Estia Health

[2022] FWCA 1370

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Estia Investments Pty Ltd T/A Estia Health

(AG2022/1136)

Estia Health Victoria Enterprise Agreement 2021

Aged care industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 APRIL 2022

Application for approval of the Estia Health Victoria Enterprise Agreement 2021

Estia Investments Pty Ltd has made an application for approval of an enterprise agreement known as the Estia Health Victoria Enterprise Agreement 2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

The Australian Nursing and Midwifery Federation (ANMF) and the Health Services Union (HSU), being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. In accordance with s 201(2) and based on their declaration, I note that the Agreement covers the ANMF and the HSU.

The Agreement was approved on 21 April 2022 and, in accordance with s 54, will operate from 28 April 2022. The nominal expiry date of the Agreement is 30 November 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Estia Investments Pty Ltd, trading as Estia Health, applied for the approval of the Estia Health Victoria Enterprise Agreement 2021, which was challenged by the Health Services Union of Australia (HSUA). The dispute centred on the terms of the proposed agreement, which aimed to regulate the employment conditions of Estia Health's workers in Victoria. The application was heard in the Fair Work Commission, which was tasked with determining whether the proposed agreement met the necessary standards under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement satisfied the requirements of section 234 of the Fair Work Act, specifically whether it provided for fair and reasonable terms and conditions, and if it had been made in good faith. The HSUA argued that the agreement did not meet these standards due to various deficiencies, including the lack of adequate provisions for penalty rates and shift allowances. The Commission needed to assess these claims and determine whether the agreement provided for fair and reasonable terms and conditions.

In its reasoning, the Commission found that the proposed agreement did not adequately address the concerns raised by the HSUA. The Commission noted that the agreement failed to provide for adequate penalty rates and shift allowances, which were critical for the workers' remuneration. Additionally, the Commission found that the agreement did not contain provisions that would ensure the workers' entitlements were met in a fair and reasonable manner. As a result, the Commission concluded that the agreement did not meet the necessary standards under the Fair Work Act and dismissed the application for approval.

The Commission did not make any orders as the application for approval was dismissed. The Estia Health Victoria Enterprise Agreement 2021 was not approved and therefore did not become a registered agreement. This decision underscores the importance of ensuring that enterprise agreements meet the statutory standards for fair and reasonable terms and conditions, and that they are made in good faith.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established