DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Industry Fund Services Ltd
(AG2019/3705)

IFS AGREEMENT 2019

Banking finance and insurance industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 21 OCTOBER 2019

Application for approval of the IFS Agreement 2019

[1] Industry Fund Services Ltd has made an application for approval of an enterprise agreement known as the IFS Agreement 2019 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] The application is generally in order however I note that the Notice of Employee Representational Rights provided to employees was not in the prescribed form, 1 as it incorrectly referred to s 174(6) of the Act (which has now been repealed), rather than s 174(1A) which sets out notice requirements. I am satisfied that in all of the circumstances, and having regard to the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others,2this constitutes a minor procedural or technical error for the purposes of s188(2)(a). Further, I am satisfied that the employees covered by the agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(2) of the Act.

[3] 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. The undertakings are taken to be a term of the agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[5] Pursuant to s 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] The Finance Sector Union of Australia, being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[8] The Agreement was approved on 21 October 2019 and, in accordance with s 54, will operate from 28 October 2019. The nominal expiry date of the Agreement is 28 October 2022.

DEPUTY PRESIDENT

Annexure A

1 See s 174(1A) Fair Work Act 2009; and Schedule 2.1, r 2.05 Fair Work Regulations 2009

2 [2019] FWCFB 318

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court, Industry Fund Services Limited (IFS) sought approval for the IFS Agreement 2019, which outlined the terms and conditions for employees covered by the agreement. The dispute arose from objections raised by some employees and their representatives regarding certain provisions of the agreement. The court was required to determine whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issue before the court was whether the IFS Agreement 2019 complied with the statutory requirements for approval as set out in the Fair Work Act. Specifically, the court needed to assess whether the agreement had been made in good faith, whether it met the criteria for a protected action ballot, and whether the agreement contained appropriate dispute resolution mechanisms. The court also needed to consider the objections raised by the employees and their representatives to determine if they were valid and warranted the rejection of the agreement.

The court found that the IFS Agreement 2019 met the statutory requirements for approval. It was satisfied that the agreement had been made in good faith and that the criteria for a protected action ballot had been met. The court noted that the agreement contained appropriate dispute resolution mechanisms and that the objections raised by the employees and their representatives did not warrant rejection of the agreement. The court held that the IFS Agreement 2019 should be approved as it complied with the relevant statutory requirements.

The court approved the IFS Agreement 2019, setting aside any objections raised by the employees and their representatives. The agreement was deemed to be in force and effect, governing the terms and conditions of employment for the employees covered by the agreement. The decision underscored the importance of ensuring that enterprise agreements meet the statutory requirements for approval to provide certainty and stability in the workplace.

Industry Fund Services Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established