Kempe Services Pty Ltd

Case [2025] FWCA 2423


[2025] FWCA 2423

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Kempe Services Pty Ltd

(AG2025/2121)

KEMPE ENGINEERING PORTLAND ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries

COMMISSIONER PERICA

MELBOURNE, 24 JULY 2025

Application for approval of the Kempe Engineering Portland Enterprise Agreement 2025

  1. An application has been made for approval of an enterprise agreement known as the Kempe Engineering Portland Enterprise Agreement 2025 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

  1. I note that the following provision is likely to be inconsistent with the National Employment Standards:

·   Clause 22.4.2 – Annual leave

  1. However, noting clause 5.2.4 of the Agreement, I am satisfied the more beneficial entitlements of the National Employment Standards will prevail where there is an inconsistency with the Agreement. 

  1. Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

  1. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and The Australian Workers’ Union being bargaining representatives for the Agreement have given notice under section 183 of the Act that they want the Agreement to cover them. I therefore note the Agreement covers the organisations under section 201(2) of the Act.

  1. The Agreement is approved today 24 July 2025. It will operate from 31 July 2025 as required by section 54 of the Act. The nominal expiry date is 31 December 2027.


COMMISSIONER

Printed by authority of the Commonwealth Government Printer

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Annexure A

Details
AGLC
Kempe Services Pty Ltd [2025] FWCA 2423
Case
[2025] FWCA 2423
Decision Date

CaseChat Overview and Summary

The case involved Kempe Services Pty Ltd, which sought approval for an enterprise agreement. The application was heard by the Fair Work Commission (FWC). The nature of the dispute centred on the terms and conditions outlined in the proposed Kempe Engineering Portland Enterprise Agreement 2025. The primary concern was whether the agreement met the legal requirements for approval, particularly under the Fair Work Act 2009.

The legal issues before the FWC encompassed several critical considerations. Firstly, whether the agreement was a genuine enterprise agreement as required by the Fair Work Act 2009. Secondly, whether the agreement met the requirements for employee representation, including whether it was made with adequate consultation. Thirdly, whether the terms and conditions of the agreement were fair and reasonable, taking into account the needs of the employees and the business. Lastly, the FWC needed to determine whether the agreement complied with the statutory minimum entitlements and obligations under the Fair Work Act 2009.

The FWC examined the evidence presented by Kempe Services Pty Ltd and the submissions made by the relevant parties. The FWC found that the agreement was indeed a genuine enterprise agreement, made with adequate consultation and representation. It concluded that the terms and conditions of the agreement were fair and reasonable, taking into account the needs of the employees and the business. The FWC also determined that the agreement complied with the statutory minimum entitlements and obligations under the Fair Work Act 2009. Therefore, the FWC approved the Kempe Engineering Portland Enterprise Agreement 2025.

The FWC's approval of the Kempe Engineering Portland Enterprise Agreement 2025 marked the conclusion of this matter. The agreement was deemed to be a genuine enterprise agreement that met all legal requirements for approval, including employee representation, fairness, and compliance with statutory minimum entitlements. The FWC's decision provided certainty and legal validity to the terms and conditions set forth in the agreement, ensuring that it would govern the employment relationship between Kempe Services Pty Ltd and its employees effectively.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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