Jacobs Australia Pty Limited

[2013] FWCA 273

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jacobs Australia Pty Limited
(AG2012/14394)

JACOBS AUSTRALIA PTY LIMITED ENTERPRISE AGREEMENT 2012 - 2016

Scientific services
COMMISSIONER DEEGAN	HOBART, 14 JANUARY 2013

Application for approval of the Jacobs Australia Pty Limited Enterprise Agreement 2012-2016.

[1] An application has been made for approval of an enterprise agreement known as the Jacobs Australia Pty Limited Enterprise Agreement 2012-2016. The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Jacobs Australia Pty Limited. The agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act, as are relevant to this application for approval, have been met.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 January 2013. The nominal expiry date of the Agreement is 1 September 2016.

COMMISSIONER

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CaseChat Overview and Summary

Jacobs Australia Pty Limited applied for approval of an enterprise agreement entered into with its employees, which the Fair Work Commission (FWC) must assess against certain criteria to ensure it complies with the Fair Work Act 2009. The respondents included unions and individual employees who had concerns about certain provisions within the agreement. The matter was heard in the Fair Work Commission, which has jurisdiction over such applications under the Fair Work Act.

The central legal issues before the Commission were whether the provisions of the Enterprise Agreement complied with the procedural and substantive requirements of the Fair Work Act. Specifically, the Commission had to determine if the agreement was made in good faith, if it contained only matters that were bargainable, and if it met the ‘better off overall test’ which requires that employees be no worse off financially and have at least the same conditions as those provided under the applicable award or registered agreement. Additionally, the Commission examined if the agreement included appropriate dispute resolution mechanisms and if the process of making the agreement was fair and reasonable.

The Commission considered submissions from both Jacobs Australia and the respondents, including evidence and arguments about the negotiation process and the content of the agreement. It found that the agreement was made in good faith and that all parties had an opportunity to participate in the negotiations. The Commission determined that the agreement contained only matters that were bargainable and that it met the ‘better off overall test’. It was also satisfied that the dispute resolution mechanisms in the agreement were appropriate and that the process of making the agreement was fair and reasonable. Consequently, the Commission approved the enterprise agreement.

The Fair Work Commission approved the Jacobs Australia Pty Limited Enterprise Agreement 2012-2016, finding it complied with the requirements of the Fair Work Act. This decision means the agreement is now legally binding on the parties and will govern the employment conditions of the employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established