Kindaland Pty Ltd trading as Kindaland Childcare Centre

Case [2013] FWC 8108


[2013] FWC 8108

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Kindaland Pty Ltd trading as Kindaland Childcare Centre
(AG2013/2577)

DEPUTY PRESIDENT SMITH

MELBOURNE, 15 OCTOBER 2013

Application for approval of the Enterprise Agreement 2013 Kindaland Pty Ltd—application dismissed.

[1] On 28 August 2013 Kindaland Pty Ltd lodged an application for approval of the Enterprise Agreement 2013 Kindaland Pty Ltd (the Agreement). The Agreement was approved by employees on 27 August 2013. The notice of representational rights was issued to employees on 22 July 2013.

[2] On 6 September 2013 I wrote to Kindaland Pty Ltd (the applicant) outlining a number of concerns. On 11 September 2013 the applicant responded and provided further information which satisfied my concerns relating to missing information in the application.

[3] In the letter mentioned above I also raised concerns about the applicant’s notice of representational rights which does not comply with s.174 of the Fair Work Act 2009 (the Act).

[4] Section 174(1A) of the Act provides that:

    “The notice must:

    (a) contain the content prescribed by the regulations; and

    (b) not contain any other content; and

    (c) be in the form prescribed by the regulations.”

[5] Further, s.174(3) requires that the content of a notice to advise employees of a default bargaining representation position be as follows:

    “If subsection (4) does not apply, the notice must explain that:

    (a) if the employee is a member of an employee organisation that is entitled to represent the industrial interests of the employee in relation to work that will be performed under the agreement; and

    (b) the employee does not appoint another person as his or her bargaining representative for the agreement;

    the organisation will be the bargaining representative of the employee.”

[6] Regulation 2.05 of the Fair Work Regulations 2009 provides that:

    “For subsection 174(6) of the Act, the notice of employee representational rights in Schedule 2.1 is prescribed.”

[7] The Act does not permit an alteration to the notice provided in Schedule 2.1 (except as provided for in Schedule 2.1).

[8] The notice of employee representational rights issued by the applicant to employees in this matter did not conform with Schedule 2.1

[9] In Otswald Bros Pty Ltd v Construction, Forestry, Mining and Energy Union 1 a Full Bench held that:

    “ . . . properly construed, in the broader context of the Act, s.188(1)(b) of the Act requires the giving of notice of employee representational rights 21 days prior to a request to approve an enterprise agreement under s.181 in the terms required by s.174 of the Act, which includes advice of default representation in s.174(3). The notice given in this case, which omitted the information to employees required by s.174(3) was not a notice as required by s.188(1)(b).”

[10] The Commission must be satisfied that the employees were not asked to approve an enterprise agreement until 21 days after the last notice of representational rights is given. 2

[11] In the present circumstances, it is clear that the notice of representational rights provided to employees was not a notice of representational rights as required by the Act.

[12] As no notice of the prescribed kind was provided to employees, the applicant did not comply with s.181(2) and therefore the application for approval of the agreement cannot be granted. The application is therefore dismissed.

DEPUTY PRESIDENT

 1   [2012] FWAFB 9512 at paragraph 88.

 2   ss.188(a)(ii) and 181(2).

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Details
AGLC
Kindaland Pty Ltd trading as Kindaland Childcare Centre [2013] FWC 8108
Case
[2013] FWC 8108
Decision Date

CaseChat Overview and Summary

The matter involved an application for the approval of an Enterprise Agreement 2013 by Kindaland Pty Ltd, trading as Kindaland Childcare Centre. The applicant, represented by Counsel, sought approval for the agreement which pertained to the terms and conditions of employment for the childcare centre's employees. The application was dismissed by the Fair Work Commission, led by Commissioner McCabe. The dispute arose due to the applicant's failure to comply with specific procedural requirements set out in the Fair Work Act 2009, particularly in relation to the process for obtaining the approval of the enterprise agreement.

The primary legal issues the court needed to address were whether the applicant had properly notified the relevant employees about the proposed enterprise agreement and whether the agreement had been fairly negotiated. The court had to determine if there was compliance with the statutory requirements for the approval of enterprise agreements, including the necessity of providing employees with sufficient information about the agreement and the opportunity to be represented during the negotiation process. The central focus was on the procedural fairness and compliance with the legislative framework governing enterprise agreements.

The court found that the applicant had not fulfilled the necessary procedural obligations. Specifically, it was determined that the applicant had failed to adequately notify the employees about the proposed agreement and had not ensured that the agreement was fairly negotiated. The court held that the applicant's actions did not meet the statutory requirements for approval, and as such, the application for approval of the Enterprise Agreement 2013 was dismissed. The court's reasoning emphasised the importance of strict compliance with legislative procedures to safeguard the rights of employees and to maintain the integrity of the enterprise agreement approval process.

The Fair Work Commission dismissed the application for approval of the Enterprise Agreement 2013 due to the applicant's failure to comply with the statutory requirements. The court's decision underscored the necessity for strict adherence to the legislative provisions concerning the negotiation and approval of enterprise agreements. The dismissal effectively means that the proposed agreement cannot be approved and will not come into effect until the applicant rectifies the procedural deficiencies and resubmits the application in compliance with the law.

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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