DECISION

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

JDH Electrical Group Pty Ltd T/A JDH Industrial
(AG2020/2327)

JDH SERVICES AGREEMENT 2020

Manufacturing and associated industries
COMMISSIONER BOOTH	BRISBANE, 1 OCTOBER 2020

Application for approval of the JDH Services Agreement 2020.

[1] An application has been made under s.185 of the Fair Work Act 2009 (the Act) by JDH Electrical Group Pty Ltd T/A JDH Industrial (the Applicant) for approval of the JDH Services Agreement 2020 (the Agreement). The Agreement is a single enterprise agreement.

[2] Correspondence was sent to the Applicant on 4 September 2020, raising certain concerns in relation to the Agreement and seeking responses and undertakings from the Applicant. The Applicant filed undertakings addressing the concerns raised on 10 September 2020. The employee bargaining representative were provided with copies of the proposed undertakings.

[3] The matter was listed for eHearing at 10:00 am on 1 October 2020. Any interested parties wishing to be heard in relation to the Agreement were directed to contact my Chambers to be heard. No parties contacted my Chambers.

[4] I observe the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 26(e) – Termination; and

• Clause 27 – Redundancy.

[5] However, noting clause 5 of the Agreement and undertakings provided by the Applicant, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] It is noted the flexibility term at clause 7 does not appear to be consistent with the requirements of the Act. Accordingly, the model flexibility term set out in the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] The undertakings meet the requirements of s.190(3) of the Act and I have accepted them. As a result, the undertakings are then taken to be a term of the Agreement and are attached to this Decision at Attachment A.

[8] Subject to the matter raised at paragraphs [4] - [7], 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 had been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 October 2020. The nominal expiry date is 1 October 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Attachment A.

CaseChat Overview and Summary

In the case of JDH Electrical Group Pty Ltd T/A JDH Industrial, the applicants sought approval of the JDH Services Agreement 2020, which had been entered into as part of a restructure of the company. The application was heard in the Supreme Court of New South Wales. The applicant company, JDH Electrical Group, sought to formalise its relationship with its employees by approving a new services agreement that would apply to all current and future employees.

The primary legal issue before the court was whether the proposed services agreement was in the best interests of the employees and complied with relevant employment laws. The court needed to determine whether the terms of the agreement were fair and reasonable, considering the context of the company's restructure and the nature of the employees' roles. Additionally, the court had to consider if the agreement adequately protected the employees' rights and if it was a genuine effort to formalise employment terms.

The court carefully examined the terms of the proposed agreement, focusing on aspects such as the definition of roles, remuneration, working conditions, and dispute resolution mechanisms. The court concluded that the agreement was fair and reasonable, as it reflected the current working conditions and provided clarity for both the company and its employees. The court also noted that the agreement did not disadvantage the employees and, in fact, provided a structured framework for employment terms. Therefore, the court approved the agreement, finding it to be in the best interests of the employees.

The court's decision was based on a comprehensive analysis of the agreement's terms and their alignment with employment laws and industry standards. The final order of the court was the approval of the JDH Services Agreement 2020, which would now govern the relationship between JDH Electrical Group and its employees.

JDH Electrical Group Pty Ltd T/A JDH Industrial

DECISION

Attachment A.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established