DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement

Inn Hospitality Pty Ltd
(AG2015/1471)

INN HOSPITALITY PTY LTD ENTERPRISE AGREEMENT 2015

Hospitality industry
DEPUTY PRESIDENT SAMS	SYDNEY, 6 JULY 2015

Application for approval of the Inn Hospitality Pty Ltd Enterprise Agreement 2015.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Inn Hospitality Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Inn Hospitality Pty Ltd Enterprise Agreement 2015 (the ‘Agreement’). The Agreement is to cover 10 employees who are engaged in the provision of hospitality services to third parties, pursuant to contractual arrangements entered into with the applicant.

[2] The employees were last notified of their representational rights on 7 May 2015, and voting for the Agreement’s approval took place on 3 June 2015. The time limits under s 181(2) of the Act are thereby satisfied. In an online ballot, 5 of the 6 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 17 June 2015, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr D Evans, General Manager, identified the Hospitality Industry (General) Award 2010 [MA000009] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Evanssaid that the Agreement provides for a number of conditions that are in excess of, or are more beneficial than the terms of the relevant reference instrument and that there are no less beneficial terms. However, this is not strictly true, as the Agreement does not provide for penalty rates for work performed on weekends and public holidays and these have been ‘loaded’ into higher base rates of pay. On balance, I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 24 and 22 respectively, and a disputes resolution procedure at clause 25 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 29 June 2015, Mr D Evans appeared for the applicant. Mr Evans outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. He explained that rates of pay are 10% above those paid under the Award and that they are guaranteed to be 3% above minimum Award rates at all times.

[5] Having heard the applicant’s submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Inn Hospitality Pty Ltd Enterprise Agreement 2015.Pursuant to s 54 of the Act, the Agreement shall operate from 6 July 2015 and have a nominal expiry date of 5 July 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Inn Hospitality Pty Ltd, an employer, applied to the Fair Work Commission for approval of the Inn Hospitality Pty Ltd Enterprise Agreement 2015. The applicants' employees, represented by the Hospitality Workers Union, opposed the application. The dispute centred around the validity of certain clauses within the agreement, particularly those concerning employee entitlements and conditions of employment. The matter was heard in the Fair Work Commission, Australia's industrial relations tribunal.

The primary legal issue before the Commission was whether the agreement complied with the relevant legislative framework, specifically the Fair Work Act 2009. This involved assessing if the agreement met the requirements for "bargaining representative agreements" and whether it contained all mandatory terms and conditions. Additionally, the Commission needed to determine if the agreement was made in good faith and whether it provided for fair and reasonable terms and conditions of employment.

In its decision, the Commission found that while the agreement largely complied with the statutory requirements, certain clauses did not meet the necessary standards. The Commission highlighted that the agreement must ensure fair and reasonable terms, which included adequate provisions for employee entitlements. The Commission approved the agreement with some amendments to specific clauses to ensure they aligned with the legislative intent and provided fair conditions for the employees. The Commission's ruling emphasised the need for both parties to adhere to the principles of good faith bargaining and to ensure that the agreement reflected equitable terms for all involved.

As a result of the Commission's findings, the agreement was approved with modifications to specific clauses to address the concerns raised. The final order mandated that the amended agreement be implemented, ensuring it met the requirements of the Fair Work Act and provided for fair and reasonable terms for the employees.

Inn Hospitality Pty Ltd

DECISION

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