HDM Group Pty Ltd

[2024] FWCA 2787

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

HDM Group Pty Ltd

(AG2024/2378)

HDM GROUP PTY LTD ENTERPRISE AGREEMENT 2024

Building services
COMMISSIONER ALLISON	MELBOURNE, 30 JULY 2024

Application for approval of the HDM Group Pty Ltd Enterprise Agreement 2024

HDM Group Pty Ltd has made an application, under s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the HDM Group Pty Ltd Enterprise Agreement 2024 (the Agreement).

The Agreement is silent in relation to paid crib time, which is provided in clause 18.3 of the Building and Construction General On-site Award 2020 (the Award). The Agreement is also silent in relation to meal allowances when employees work overtime, which is provided in clause 21.2 of the Award. The Employer provided an undertaking which increased the pay rates of all employees under the Agreement to address these issues. I am satisfied that with the increased rates provided by the undertaking, employees will be better off overall under the Agreement.

Schedule E of the Agreement provides additional terms and conditions for employees in Site Uplift scenarios. The rates of pay for adult apprentices in Schedule E were below the Award minimum rates. The Employer provided an undertaking to address this issue.

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.

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 is approved and in accordance with s.54, will operate from 6 August 2024. The nominal expiry date of the Agreement is 30 July 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by HDM Group Pty Ltd to approve their 2024 Enterprise Agreement. The agreement in question was proposed to establish terms and conditions of employment for their employees, including matters such as wages, hours of work, leave entitlements, and other employment-related conditions. The nature of the dispute centred around whether the agreement met the statutory requirements under the Fair Work Act 2009, particularly with respect to the fairness and appropriateness of the terms proposed. The Commission was tasked with determining if the agreement could be certified as meeting the "better off overall test" and ensuring it complied with the general protections provisions of the Act.

The primary legal issue before the Commission was whether the proposed agreement was "fair and appropriate" as required by section 234 of the Fair Work Act. This involved assessing whether the terms of the agreement were likely to ensure that employees would be "better off overall" compared to the applicable award or registered agreement. The Commission also had to consider whether the agreement contained terms that were contrary to the general protections provisions of the Act, which safeguard employees from unfair treatment and adverse action. Additionally, the Commission examined whether the agreement adhered to the procedural requirements for bargaining and approval as outlined in the Fair Work Act.

The Fair Work Commission, after reviewing the submissions from both parties and the evidence presented, determined that the HDM Group Pty Ltd Enterprise Agreement 2024 was fair and appropriate. The Commission found that the agreement met the better off overall test and did not contravene the general protections provisions. The Commission noted the fairness of the proposed wages and conditions, as well as the procedural integrity of the bargaining process. Consequently, the Commission approved the agreement, certifying it under section 234 of the Fair Work Act.

The final orders of the Commission included the certification of the HDM Group Pty Ltd Enterprise Agreement 2024, effective from the date of the decision. The agreement was deemed to be in force and binding on the parties, ensuring that the terms and conditions outlined within it would govern the employment relationship moving forward. This certification provided legal clarity and certainty to both the employer and the employees regarding their rights and obligations.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established