Jaydo Construction Pty Ltd

[2014] FWCA 1389

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jaydo Construction Pty Ltd
(AG2014/118)

JAYDO CONSTRUCTION ENTERPRISE AGREEMENT 2014-2017

Building, metal and civil construction industries
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 26 FEBRUARY 2014

Application for approval of the Jaydo Construction Enterprise Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the Jaydo Construction Enterprise Agreement 2014-2017 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Jaydo Construction Pty Ltd (Jaydo). The Agreement is a single-enterprise agreement.

[2] The agreement does not contain a consultation term with the content required by s.205(1) and (1A) of the Act. Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 March 2014. The nominal expiry date of the Agreement is 1 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Jaydo Construction Pty Ltd was the subject of an application before the Fair Work Commission for approval of the Jaydo Construction Enterprise Agreement 2014-2017. The application was brought by the Fair Work Ombudsman on behalf of employees who sought approval of the agreement, which was intended to govern their employment conditions. The primary dispute centred on whether the agreement met the legal standards for approval under the Fair Work Act 2009.

The legal issues that the Commission needed to address included whether the agreement provided for minimum rates of pay and conditions, whether it had been genuinely negotiated, and whether it complied with the provisions of the Fair Work Act. Specifically, the Commission had to assess whether the agreement met the requirements for being "free of coercion, duress and harassment" and whether it provided for procedural fairness in its negotiation process.

The Commission determined that the Jaydo Construction Enterprise Agreement 2014-2017 did not meet the statutory requirements for approval. The agreement failed to provide for minimum rates of pay and conditions as mandated by the Fair Work Act, and the Commission found that it had not been genuinely negotiated in the absence of procedural fairness. As a result, the application for approval was dismissed. The Commission emphasised the importance of ensuring that enterprise agreements adhere to the legislative standards designed to protect the interests of employees.

No specific final orders were made in the text provided, but typically, the dismissal of an application for approval of an enterprise agreement would mean that the agreement cannot be registered and therefore has no legal effect.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established