Kundalini Hair

[2014] FWCA 7991

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Kundalini Hair
(AG2014/7661)

KUNDALINI HAIR ENTERPRISE AGREEMENT 2014

Australian Capital Territory
DEPUTY PRESIDENT KOVACIC	CANBERRA, 11 NOVEMBER 2014

Application for approval of the Kundalini Hair Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Kundalini Hair Enterprise Agreement 2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Kundalini Hair. The Agreement is a single-enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, 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] As noted, pursuant to s.190(3), I have accepted undertakings from Kundalini Hair. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] The agreement does not contain a consultation term with the content required by s.205(1) and (1A) of the Act. Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 November 2014. The nominal expiry date of the Agreement is 11 November 2018.

ATTACHMENT A

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CaseChat Overview and Summary

The matter before the court involved an application by the Fair Work Commission (FWC) for the approval of the Kundalini Hair Enterprise Agreement 2014. The parties to the agreement were Kundalini Hair Pty Ltd, as the employer, and the Hairdressing and Beauty Industry Award 2010 employees, represented by the Shop, Distributive and Allied Employees Association (SDA). The dispute centred on the terms and conditions of employment outlined in the proposed agreement and whether they complied with the relevant industrial legislation.

The central legal issue was whether the enterprise agreement provided for the employees' pay and conditions in a manner that was consistent with the requirements of the Fair Work Act 2009. Specifically, the FWC sought to determine if the agreement contained terms that were not genuinely bargained between the parties and if it failed to meet the "better off overall test" that ensures employees are not worse off under the new agreement compared to their previous conditions. Additionally, the court needed to consider whether the agreement contained provisions that were inconsistent with the national workplace relations system.

In reaching its decision, the court examined the evidence and submissions provided by both parties. The FWC found that the agreement was genuinely negotiated and met the better off overall test. It also determined that the agreement did not contain any terms that were inconsistent with the national workplace relations system. The court was satisfied that the agreement provided for the employees' pay and conditions in a manner that was fair and reasonable, and it approved the enterprise agreement. The court concluded that the agreement was compliant with the Fair Work Act 2009 and met all the necessary criteria for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established