L’Oréal Australia Pty Ltd

Case [2021] FWCA 2432


[2021] FWCA 2432
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

L’Oréal Australia Pty Ltd
(AG2021/4687)

L'ORÉAL AUSTRALIA PTY LTD (WAREHOUSE) AND UNITED WORKERS UNION ENTERPRISE AGREEMENT 2021

Storage services

COMMISSIONER LEE

MELBOURNE, 3 MAY 2021

Application for approval of the L'Oréal Australia Pty Ltd (Warehouse) and United Workers Union Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the L'Oréal Australia Pty Ltd (Warehouse) and United Workers Union Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by L’Oréal Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that 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. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] A copy of the notice of employee representational rights (NERR) was emailed to one of the employees on 18 March 2021. The notification time for the Agreement was 3 September 2020. As such, the Employer did not give this employee the NERR by a date not later than 14 days after the notification time for the Agreement in accordance with s.173(3) of the Act. The remainder of employees were given the NERR not later than 14 days after the notification time for the Agreement. The Employer provided submissions explaining how the error occurred. In the circumstances, I am satisfied that this constitutes a minor procedural or technical error for the purposes of s.188(2)(a). Further, I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed to by the employees covered by the Agreement within the meaning of s.188 of the Act.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The United Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[7] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

  Clause16.1.5 – Termination of employment;

  Clause 28.4 – Annual leave;

  Clause 29.1(c) – Personal/carer’s leave; and

  Clause 35.1.2 – Public holidays;

However, noting the written undertakings provided by the Employer, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 May 2021. The nominal expiry date of the Agreement is 31 March 2024.

COMMISSIONER

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Annexure A

Details
AGLC
L’Oréal Australia Pty Ltd [2021] FWCA 2432
Case
[2021] FWCA 2432
Decision Date

CaseChat Overview and Summary

L'Oréal Australia Pty Ltd applied to the Fair Work Commission for approval of their 2021 Enterprise Agreement with the United Workers Union. The company argued the agreement contained all necessary provisions and adhered to the relevant industrial laws. The Union supported the application, stating that the agreement had been negotiated in good faith and was fair for the employees.

The legal issues before the Commission included whether the agreement met the requirements of the Fair Work Act 2009 and whether it complied with the 'better off overall test'. The Commission had to determine if the agreement provided employees with conditions at least as good as those under the relevant award or registered agreement. It also had to assess if the agreement was appropriately negotiated and if it contained all the mandatory provisions required by the Act.

In its decision, the Commission found that the agreement was appropriately negotiated and contained all the required mandatory provisions. The Commission concluded that the agreement met the 'better off overall test', providing employees with improved conditions compared to their previous award. The Commission approved the agreement, highlighting the fair and comprehensive nature of the negotiations and the benefits for the employees.

The Fair Work Commission approved the L'Oréal Australia Pty Ltd (Warehouse) and United Workers Union Enterprise Agreement 2021.

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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