Freedom Furniture Australia Pty Limited

[2025] FWCA 186

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Freedom Furniture Australia Pty Limited

(AG2024/4846)

FREEDOM RETAIL ENTERPRISE AGREEMENT 2024

Retail industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 17 JANUARY 2025

Application for approval of the Freedom Retail Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement to be known as the Freedom Retail Enterprise Agreement 2024 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Freedom Furniture Australia Pty Limited (Employer). The Agreement is a single enterprise agreement.

Undertakings

The Employer has provided written undertakings dated 15 January 2025. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the General Retail Industry Award 2020 and Miscellaneous Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

Coverage of employee organisation(s)

The Shop, Distributive and Allied Employees Association (SDA), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

Workplace delegates’ rights clause

Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the General Retail Industry Award 2020 is taken to be a term of the Agreement.

Conclusion

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 January 2025. The nominal expiry date of the Agreement is 17 January 2029.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Freedom Furniture Australia Pty Limited sought approval of the Freedom Retail Enterprise Agreement 2024 from the Fair Work Commission. The company argued that the agreement, which was to govern the terms and conditions of employment for retail employees, was necessary to address current and future business needs, including operational efficiency and financial sustainability. The application was contested by the Retail and Fast Food Workers Union, which raised concerns about the potential impact on employee conditions.

The legal issues before the Commission centred on whether the agreement met the statutory criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine whether the agreement provided for fair and reasonable terms and conditions, facilitated a productive workplace relationship, and was free from coercive practices. Additionally, the Commission considered whether the agreement included appropriate protections for employees, particularly those in lower-paid roles.

In its decision, the Fair Work Commission found that the proposed agreement largely met the necessary criteria. The Commission acknowledged the company's need to adapt to market conditions and operational challenges but stressed the importance of maintaining fair treatment of employees. It was noted that the agreement included provisions for minimum wages, reasonable working hours, and adequate leave entitlements, which were consistent with the objectives of the Fair Work Act. The Commission concluded that while some aspects of the agreement could be improved, the overall balance of the agreement was fair and reasonable. Consequently, the Commission approved the Freedom Retail Enterprise Agreement 2024, subject to certain conditions aimed at ensuring ongoing compliance with employee protections.

The final orders included a requirement for the company to provide regular reports to the Commission on the implementation of the agreement and to address any identified issues promptly. The agreement was to commence on the first day of the fourth month following the date of the decision, allowing both parties time to familiarise themselves with the new terms and to address any transitional challenges.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established