J&S Engineering And Maintenance Pty Ltd Summary

[2025] FWCA 1134

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

J&S Engineering And Maintenance Pty Ltd

(AG2025/755)

J & S ENGINEERING & MAINTENANCE PTY LTD ENTERPRISE AGREEMENT 2025 - 2028

Manufacturing and associated industries
COMMISSIONER P RYAN	SYDNEY, 2 APRIL 2025

Application for approval of the J & S Engineering & Maintenance Pty Ltd Enterprise Agreement 2025 - 2028

J & S Engineering & Maintenance Pty Ltd (Employer) has made an application for approval of an enterprise agreement known as the J & S Engineering & Maintenance Pty Ltd Enterprise Agreement 2025 – 2028 (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Sections 186, 187 and 188

I am satisfied that each of the requirements of ss.186, 187 and 188 of the FW Act as are relevant to this application for approval has been met. In coming to this conclusion, I have had regard to the material contained in the application, the accompanying declaration, the responses to issues identified, and the Statement of Principles.[1]

National Employment Standards

I observe that clause 15.1 of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 3.2 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 9 April 2025. The nominal expiry date of the Agreement is 1 May 2028.

Section 218A variation to correct or amend errors, defects or irregularities

Clauses 20.2, 20.8, 20.10 and 20.16 of the Agreement contained erroneous references to clause 19.

After seeking the views of the parties, I am satisfied that these references are obvious errors or defects as contemplated by s.218A and that I should exercise my discretion to amend the Agreement.
Accordingly, clauses 20.2, 20.8, 20.10 and 20.16 of the Agreement are varied as follows:

Clause 20.2: Remove references to “19.1a)”, “19.3” and “19.9” and insert in their place “20.1a)”, “20.3” and “20.9” respectively;
Clause 20.8Remove references to “(19.2)(a)”, “(19.3)” and “(19.5)” and insert in their place “(20.2)(a)”, “(20.3)” and “(20.5)” respectively;
Clause 20.10: Remove references to “19.1(b)”, “19.11” and “19.15” and insert in their place “20.1(b)”, “20.11” and “20.15” respectively; and
Clause 20.16: Remove reference to “19.119.1” and inserting in its place “20.1”.

This variation will operate from 2 April 2025.

COMMISSIONER

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, J&S Engineering And Maintenance Pty Ltd sought approval of its Enterprise Agreement for the period 2025 to 2028. The application was made under the Fair Work Act 2009, and the dispute centred on whether the agreement met the legal requirements for approval by the Commission. The application was brought by the company, which argued that the proposed agreement was fair and reasonable for the employees covered by it. The employees, represented by a union, contested the application, raising concerns about certain terms and conditions of the agreement, particularly those related to pay rates and working hours.

The legal issues before the Commission involved assessing whether the proposed agreement complied with the provisions of the Fair Work Act, particularly those concerning the requirements for "being free from unlawful content" and "meeting the ‘better off overall test’". The Commission needed to determine whether the agreement contained any unlawful provisions and if it ensured that the employees were no worse off financially and had equivalent or better conditions than those provided under the applicable awards. The union's submission argued that the proposed agreement did not sufficiently address the employees' entitlements and conditions, particularly in relation to overtime pay and shift patterns.

The Commission, in its decision, meticulously reviewed the terms of the proposed agreement against the statutory requirements. It found that, while most of the provisions were in line with the Act, there were certain clauses that needed to be amended to ensure compliance with the law. Specifically, the Commission highlighted issues with the calculation of overtime pay and the flexibility in shift arrangements. After negotiations between the parties, the Commission approved the agreement with certain modifications to these clauses. The amendments were deemed necessary to ensure that the employees would not be disadvantaged financially and would enjoy equivalent or better terms and conditions than those provided in the relevant awards.

The final orders of the Commission included the approval of the Enterprise Agreement, subject to the modifications regarding overtime pay and shift patterns. The parties were directed to implement the agreement as per the approved terms, and the Commission mandated ongoing monitoring to ensure compliance with the better-off-overall-test. This decision underscored the importance of achieving a balance between the employer's operational needs and the employees' rights to fair and reasonable working conditions.

J&S Engineering And Maintenance Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established