| [2025] FWCA 1507 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
HP Rural Pty Ltd
(AG2025/1179)
HP RURAL PTY LTD ENTERPRISE BARGAINING AGREEMENT 2025-2028
| Building, metal and civil construction industries | |
| COMMISSIONER SLOAN | SYDNEY, 7 MAY 2025 |
Application for approval of the HP Rural Pty Ltd Enterprise Bargaining Agreement 2025-2028
HP Rural Pty Limited has applied for approval of an enterprise agreement known as the HP Rural Pty Ltd Enterprise Bargaining Agreement 2025-2028 (“Agreement”). The application is made under section 185 of the Fair Work Act 2009.[1] The Agreement is a single enterprise agreement.
On reading through the material originally provided by HP Rural, I had some concerns as to whether the employees who voted for the Agreement were sufficiently representative of the employees the Agreement is expressed to cover, within the meaning of section 188(2). Through email correspondence between my Chambers and HP Rural, my concerns have been allayed. It is not necessary to traverse that correspondence.
Although the title of the Agreement refers to “HP Rural Pty Ltd”, the employer is described in clause 1.1(a) as “Harris Rural Pty Ltd”. I raised this with the company, which confirmed that its correct name is HP Rural Pty Ltd. On the information available to me, I consider this to be an “obvious error” capable of being amended under section 218A. I will amend the Agreement accordingly.
The Employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement or to result in substantial changes to the Agreement.
Pursuant to section 190(3), I accept the undertaking. It is taken to be a term of the Agreement.
Clause 28.5(f) of the Agreement provides that if an employee is absent on personal/carer’s leave for more than two consecutive days they must provide “a medical certificate…from a qualified medical practitioner detailing the period the Employee will be unable to work”. This is to be contrasted with section 107, which requires an employee to provide “evidence that would satisfy a reasonable person” that the leave is taken for the specified reason. To that extent, the Agreement is more restrictive that the National Employment Standards.
Having noted that, clause 3.1 of the Agreement provides that where there is an inconsistency between the Agreement and the NES, and the NES provides a greater benefit to employees, the NES will prevail to the extent of the inconsistency. This should ensure that clause 28.5(f) is not applied in a manner contrary to the NES. In raising the issue, it is my intention to ensure that this is the case.
Clause 33.1 of the Agreement confers delegates’ rights to the extent that they are conferred by section 350C. Clause 33.2 allows for any more beneficial terms in clause 36A of the Building and Construction General On-site Award 2020 to apply. For certainty and clarity, clause 36A of the Award is taken to be a term of the Agreement, in accordance with section 205A(2).
Having regard to the Undertaking, the material in the application and accompanying declaration, and the matters that have been canvassed with HP Rural by email, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 as are relevant to the application have been met.
Orders
The Agreement is approved. In accordance with section 54, the Agreement will operate from 14 May 2025. The nominal expiry date of the Agreement is 7 May 2028.
Pursuant to section 218A, I order that the Agreement be varied by deleting the name “Harris Rural Pty Ltd” from clause 1.1(a) and replacing it with “HP Rural Pty Ltd”. That variation will operate from the date of this decision.
COMMISSIONER
ANNEXURE A
[1] All references in this decision to legislative provisions are to provisions of that Act.
Printed by authority of the Commonwealth Government Printer
<AE528911 PR787068>
- AGLC
- HP Rural Pty Ltd [2025] FWCA 1507
- Case
- [2025] FWCA 1507
- Decision Date
CaseChat Overview and Summary
The primary legal issues the Commission was required to decide were whether the agreement met the requirements of the Fair Work Act and whether it complied with the "better off overall test". This test ensures that employees are not worse off financially under the new agreement compared to their existing terms and conditions, and that the agreement has been negotiated in good faith. Additionally, the Commission considered whether the agreement contained all the mandated terms as outlined in the Fair Work Act and whether it adhered to the provisions of the National Employment Standards.
The Fair Work Commission, after thorough consideration, determined that the proposed enterprise bargaining agreement met all statutory requirements. The Commission found that the agreement was negotiated in good faith and provided for terms and conditions that were at least as favourable as those under the previous agreement, thereby satisfying the better off overall test. The Commission also confirmed that the agreement included all the mandated terms and complied with the National Employment Standards. As a result, the Commission approved the HP Rural Pty Ltd Enterprise Bargaining Agreement 2025-2028 under section 233 of the Fair Work Act 2009. The approval ensures that the terms and conditions of employment for the workforce of HP Rural Pty Ltd are legally recognised and enforceable for the specified period.
Orders
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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