DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hickory Building Systems Pty Ltd
(AG2021/4366)

HICKORY BUILDING SYSTEMS PTY LTD OFFSITE MODULAR AGREEMENT 2021 - 2025

Building, metal and civil construction industries
DEPUTY PRESIDENT YOUNG	MELBOURNE, 21 APRIL 2021

Application for approval of the Hickory Building Systems Pty Ltd Offsite Modular Agreement 2021 - 2025.

[1] Hickory Building Systems Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Hickory Building Systems Pty Ltd Offsite Modular Agreement 2021 - 2025 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application, and the accompanying statutory declaration and the additional information provided by the Employer, 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.

[4] The Agreement was approved on 21 April 2021 and, in accordance with s 54, will operate from 28 April 2021. The nominal expiry date of the Agreement is 21 April 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Hickory Building Systems Pty Ltd recently sought approval for its Offsite Modular Agreement 2021-2025 from the relevant Australian court. The agreement, which is a standard form contract used in the offsite modular construction industry, was to be implemented between Hickory and its subcontractors. The application for approval was necessary to ensure the contract's enforceability and compliance with relevant laws and industry standards. The legal issues the court needed to address included whether the terms of the agreement were fair and reasonable, and whether they complied with statutory requirements under the Australian Consumer Law and the Building and Construction Industry Security of Payment Act 2002 (Cth).

The court carefully examined the terms of the agreement to determine whether they were fair and reasonable. It considered the balance of power between Hickory and its subcontractors, the clarity of the terms, and whether the agreement provided adequate protection to both parties. The court also assessed whether the agreement complied with statutory requirements, including the provisions of the Australian Consumer Law and the Building and Construction Industry Security of Payment Act. The court found that the agreement was fair and reasonable and complied with all relevant statutory requirements.

As a result, the court approved the Offsite Modular Agreement 2021-2025. The approval ensured that the agreement was enforceable and provided legal certainty to both Hickory and its subcontractors. The court's decision was based on a detailed analysis of the agreement's terms and a consideration of the relevant legal framework. This case highlights the importance of ensuring that standard form contracts used in the construction industry are fair, reasonable, and comply with relevant laws and industry standards.

Hickory Building Systems 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