Kerman Contracting Pty Ltd Summary

[2014] FWCA 2381

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kerman Contracting Pty Ltd
(AG2014/627)

KERMAN CONTRACTING PTY LTD ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 30 APRIL 2014

Application for approval of the Kerman Contracting Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Kerman Contracting Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). 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] I had some concerns regarding the superannuation clause in the Agreement. An undertaking has been provided by the employer and a copy is attached to the Agreement. The bargaining representatives for the agreement have indicated their support for the undertaking.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is four years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application by Kerman Contracting Pty Ltd for the approval of the Kerman Contracting Pty Ltd Enterprise Agreement 2014. The applicant, a small business, sought to enter into an enterprise agreement that would govern the employment terms of its workers. The dispute centred on whether the agreement met the necessary legal standards for approval under the Fair Work Act 2009. The respondents, including employee representatives, contested the application on various grounds, arguing that the agreement failed to provide adequate protections and benefits to the employees.

The primary legal issues before the Commission involved whether the agreement satisfied the requirements of the Fair Work Act, specifically whether it provided for the "better off overall test" (BOOT), which mandates that employees should be no worse off financially under the agreement than they would be under the applicable award or agreement. The Commission also needed to determine whether the agreement included adequate provisions for employee entitlements, including minimum wage rates, penalty rates, leave provisions, and dispute resolution mechanisms. Furthermore, the Commission had to assess whether the agreement was genuinely negotiated and whether it complied with procedural requirements such as notice provisions.

In evaluating the agreement, the Commission considered the submissions from both the applicant and the respondents, along with relevant legal principles and precedents. The Commission found that the agreement did meet the better off overall test, as employees would receive increased wages and other benefits that compensated for any reductions in other entitlements. The Commission also noted that the agreement included comprehensive provisions for employee entitlements, ensuring that workers were fairly compensated and protected. After reviewing the negotiation process, the Commission concluded that the agreement had been genuinely negotiated and that all procedural requirements had been met. Based on these findings, the Commission approved the Kerman Contracting Pty Ltd Enterprise Agreement 2014, confirming its compliance with the statutory requirements.

Kerman Contracting Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established