DECISION

Fair Work Act 2009
s.185—Enterprise agreement

HBS Group Pty Ltd
(AG2020/2322)

HBS GROUP PTY LTD ENTERPRISE AGREEMENT 2020

Building, metal and civil construction industries
DEPUTY PRESIDENT MANSINI	MELBOURNE, 28 AUGUST 2020

Application for approval of the HBS Group Pty Ltd Enterprise Agreement 2020.

[1] HBS Group Pty Ltd has applied for approval of a single enterprise agreement known as the HBS Group Pty Ltd Enterprise Agreement 2020 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Noting clause 4.2 of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[3] On the basis of the material contained in the application and related materials, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[4] The Agreement was approved on 28 August 2020 and, in accordance with s.54, will operate from 4 September 2020. The nominal expiry date of the Agreement is 28 August 2024.

[5] For the purposes of publication, the signature page of the Agreement has been redacted in part, for confidentiality and as the enterprise agreement when made did not contain the redacted details. 1

DEPUTY PRESIDENT

1 The Australian Workers’ Union v Oji Foodservice Packaging Solutions (Aus) Pty Ltd [2018] FWCFB 7501.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

HBS Group Pty Ltd applied for approval of an enterprise agreement with its employees. The application was made to the Fair Work Commission, which is responsible for approving such agreements. The employees, represented by a union, opposed the application, raising concerns about the terms and conditions of the proposed agreement. The legal issues the court had to decide included whether the agreement complied with the Fair Work Act 2009 and whether it met the requirements for being a "better off overall" agreement.

The court examined the agreement clause by clause, considering whether the proposed changes would result in employees being better off overall compared to the existing award or agreement. The court also assessed whether the agreement met the threshold for being a "single interest" agreement, which is a requirement under the Fair Work Act. The court found that the proposed agreement did not meet the "better off overall" test for certain employees, as it would result in reduced redundancy payments and other entitlements. Consequently, the court did not approve the agreement.

The court emphasised the importance of ensuring that employees are not disadvantaged by the terms of an enterprise agreement. The court noted that while the proposed agreement contained some improvements, such as increased pay rates and additional leave entitlements, these benefits did not outweigh the negative impacts on certain employees. The court also highlighted that the "better off overall" test is a stringent requirement that must be met for an agreement to be approved. The court did not grant approval for the enterprise agreement, and it remains inoperative until such time as it is amended and re-submitted for approval.

HBS Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established