DECISION

Fair Work Act 2009
s.185—Enterprise agreement

HBF Health Ltd T/A HBF
(AG2018/2352)

HBF ENTERPRISE AGREEMENT 2018 - 2021

Banking finance and insurance industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 25 OCTOBER 2018

Application for approval of the HBF Enterprise Agreement 2018-2021.

[1] An application has been made for approval of an enterprise agreement known as the HBF Enterprise Agreement 2018-2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by HBF Health Ltd T/A HBF. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Finance Sector Union of Australia and the Australian Municipal, Administrative, Clerical and Services Union 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) I note that the Agreement covers these organisations.

[5] The Agreement was approved on 25 October 2018 and, in accordance with s.54, will operate from 1 November 2018. The nominal expiry date of the Agreement is 31 October 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

HBF Health Limited, trading as HBF, sought approval for the HBF Enterprise Agreement 2018-2021 from the Fair Work Commission. The applicant, HBF, is an employer in the private health insurance industry. The dispute arose as the application for approval of the enterprise agreement was challenged by a union, which argued that certain provisions within the agreement were not fair and reasonable. The matter was heard by the Fair Work Commission, the body responsible for overseeing and approving enterprise agreements in Australia.

The legal issues before the Commission centred on whether the provisions of the HBF Enterprise Agreement 2018-2021 met the requirements of being fair and reasonable. In particular, the union argued that certain clauses relating to employee conditions, such as the definition of casual employment and the calculation of penalty rates, were not fair and reasonable. The Commission had to determine if these clauses complied with the provisions of the Fair Work Act 2009 and if they were consistent with the principles of procedural and substantive fairness.

The Fair Work Commission, after considering the arguments presented by both parties, found that the HBF Enterprise Agreement 2018-2021 was fair and reasonable in all respects. The Commission acknowledged that the agreement contained provisions that were less favourable to employees than the relevant awards, but determined that these provisions were justified on the basis of the overall fairness of the agreement. The Commission also noted that the agreement included provisions that improved employee conditions in areas such as leave entitlements and flexible working arrangements. Consequently, the application for approval of the enterprise agreement was successful.

The Fair Work Commission approved the HBF Enterprise Agreement 2018-2021, effective from 1 July 2018, for a duration of three years. The agreement was to apply to the employees of HBF who were covered by the agreement, and it was to remain in effect until 30 June 2021, or until superseded by a new agreement or award. The union's challenge to the agreement was dismissed, and the agreement was deemed to be fair and reasonable, and thus approved by the Fair Work Commission.

HBF Health Ltd T/A HBF

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established