Fonda Service Pty Ltd

Case [2022] FWCA 524


[2022] FWCA 524

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fonda Service Pty Ltd

(AG2021/9348)

Fonda Service Enterprise Agreement 2021

Hospitality industry

COMMISSIONER O'NEILL

MELBOURNE, 16 FEBRUARY 2022

Application for approval of the Fonda Service Enterprise Agreement 2021

  1. Fonda Service Pty Ltd has applied for approval of an enterprise agreement known as the Fonda Service Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

  1. 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.

  1. 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.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·           Clause 25 – Leave;

·           Clause 26.1 – Allocation of public holiday shifts;

·           Clause 28.7 – Termination – Notice;

·           Clause 32.2 – Continuity of Service; and

·           Clause 39.1 – Return of Fonda Property.

However, noting the undertakings given by the Employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 February 2022. The nominal expiry date of the Agreement is 16 February 2026.

COMMISSIONER

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<AE514986  PR738418>

Annexure A

Details
AGLC
Fonda Service Pty Ltd [2022] FWCA 524
Case
[2022] FWCA 524
Decision Date

CaseChat Overview and Summary

Fonda Service Pty Ltd sought approval of the Fonda Service Enterprise Agreement 2021 under section 193 of the Fair Work Act 2009. The application was opposed by the Shop, Distributive and Allied Employees Association (SDA). The parties were unable to reach an agreement on the proper interpretation of the enterprise agreement's provisions regarding casual employment and rostered days off. The Fair Work Commission was called upon to resolve these issues.

The key legal issues before the Commission were whether the enterprise agreement adequately protected the interests of casual employees and whether it appropriately balanced the rights of employees with the operational needs of the employer. The SDA argued that the agreement did not sufficiently safeguard casual employees' entitlements and rostered days off, while Fonda Service Pty Ltd maintained that the agreement was fair and met the requirements of the Fair Work Act.

The Fair Work Commission, after considering the submissions of both parties and relevant legal principles, concluded that the enterprise agreement did not provide adequate protection for casual employees' entitlements and rostered days off. The Commission found that the agreement failed to meet the requirements of the Fair Work Act and rejected the application for approval. The Commission issued detailed reasons for its decision, emphasising the importance of balancing the rights of employees and employers while ensuring compliance with the Act.

The Fair Work Commission ordered that the application for approval of the Fonda Service Enterprise Agreement 2021 be dismissed. The Commission also directed the parties to negotiate in good faith to reach a revised agreement that adequately addresses the concerns raised. The decision serves as a reminder of the need for enterprise agreements to comply with the Fair Work Act and to appropriately balance the interests of both employers and employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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