Karma.com Pty Ltd

[2014] FWCA 2346

FAIR WORK COMMISSION

DECISION

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

Karma.com Pty Ltd
(AG2014/687)

KARMA.COM PTY LTD - HOTELS - ENTERPRISE AGREEMENT 2014

Hospitality industry
DEPUTY PRESIDENT SAMS	SYDNEY, 10 APRIL 2014

Application for approval of the Karma.com Pty Ltd - Hotels - Enterprise Agreement 2014.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Karma.com 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 Karma.com Pty Ltd - Hotels - Enterprise Agreement 2014 (the ‘Agreement’). The Agreement is to cover 7 employees who are engaged at the applicant’s hotel in Carlton, Victoria. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 3 March 2014, and voting for the Agreement’s approval took place on 26 March 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a secret ballot, all 7 of the employees agreed to approve the Agreement. The application for approval of the Agreement was lodged on 27 March 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr D Rice-Scott, Operations Manager identified the Hospitality Industry (General) Award 2010 [MA000009] and the Hospitality Industry - Accommodation, Hotels, Resorts and Gaming Award 1998 [AP783479] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Rice-Scottsaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments including the a lack of provision for penalty rates for work performed on weekends, public holidays and at unsociable hours, the removal of a job search entitlement in circumstances of redundancy and the removal of a number of allowances. However, the Agreement also provides for a number of terms and conditions that are more beneficial than those under the reference instruments, including higher ‘loaded’ base rates of pay, longer minimum engagements for casual employees and jury service leave. Rates of pay are to be adjusted in accordance with the Commission’s Minimum Wage Review decisions. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 7.1 and 7.3 respectively, and a disputes resolution procedure at clause 2.4 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 7 April 2014, Mr C Agnew, Solicitor,appeared with Mr D Rice-Scott for the applicant. Mr Agnew 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. Mr Agnew explained that the applicant had recently purchased the hotel and that it was currently being refurbished. The hotel has a general liquor licence and does not provide accommodation. Mr Rice-Scott said that he anticipated employing more employees in the future.

[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 Karma.com Pty Ltd - Hotels - Enterprise Agreement 2014.Pursuant to s 54 of the Act, the Agreement shall operate from 14 April 2014 and have a nominal expiry date of 1 March 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The applicant, Karma.com Pty Ltd, applied to the Fair Work Commission for approval of the Enterprise Agreement 2014, which would apply to its employees working in the hotel sector. The dispute involved the terms and conditions of employment for the hotel staff and whether the agreement met the necessary requirements for approval under the Fair Work Act 2009. The Commission was required to determine whether the agreement provided for fair and reasonable terms and conditions, and whether the agreement had been made in good faith and without coercion. The applicant argued that the agreement was fair and reasonable, and had been made in good faith, while the respondents contended that the agreement did not meet the necessary requirements.

The Commission considered the terms and conditions of the agreement, including the provisions relating to wages, hours of work, and other employment-related matters. The Commission found that the agreement provided for fair and reasonable terms and conditions, and that it had been made in good faith and without coercion. The Commission also found that the agreement met the necessary requirements for approval under the Act. The applicant successfully demonstrated that the agreement was in the best interests of the employees and provided for a fair and reasonable outcome.

Accordingly, the Commission approved the Enterprise Agreement 2014. The agreement will now apply to the employees of the applicant working in the hotel sector, and will provide for their terms and conditions of employment. The approval of the agreement is an important step in ensuring that the employees of the applicant are treated fairly and reasonably, and that their employment-related matters are dealt with in a transparent and equitable manner. The outcome of this case is significant for both the applicant and its employees, and provides a framework for the fair and reasonable resolution of employment-related disputes in the future.

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