L. v Dohnt and Company Pty Ltd

Case [2015] FWCA 2839


[2015] FWCA 2839
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

L. V. Dohnt and Company Pty Ltd
(AG2015/596)

L. V. DOHNT ENTERPRISE AGREEMENT FOR OPERATIONAL EMPLOYEES BASED IN SOUTH AUSTRALIA AND VICTORIA 2014 (NON SALARIED EMPLOYEES)

Timber and paper products industry

SENIOR DEPUTY PRESIDENT O'CALLAGHAN

ADELAIDE, 24 APRIL 2015

Application for approval of the L. V. Dohnt Enterprise Agreement for Operational Employees based in South Australia and Victoria 2014 (non-salaried employees).

[1] An application has been made for approval of an enterprise agreement known as the L. V. Dohnt Enterprise Agreement for Operational Employees based in South Australia and Victoria 2014 (non-salaried employees) (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by L. V. Dohnt and Company Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The employer has provided undertakings which are phrased on the basis that it seeks to delete clauses 8(c) and 5 in their entirety and to replace these clauses.

[3] I have taken these undertakings to establish that the employee will apply the following clause in place of clause 8(c):

8(c) Termination by the employer by redundancy

(1) An employee is entitled to be paid redundancy pay by the employer if the employee’s employment is terminated:

    (a) at the employer’s initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or

    (b) because of the insolvency or bankruptcy of the employer.

    In addition, Redundancy will not be payable under the following circumstances;

      (a) Where an employee’s service is less than 12 months; or
      (b) Where an employee is employed for a specified period of time, for a specific task or for the duration of a specified season; or
      (c) A casual employee; or
      (d) An employee whose employment is terminated as a result of serious misconduct; or
      (e) Where a transfer or business occurs and the employee declines an offer of employment by another employer that is on terms and conditions substantially similar to the employee’s terms and conditions of employment with L. V. Dohnt and Company.

Amount of redundancy pay

(2) The amount of the redundancy pay equals the total amount payable to the employee for the redundancy pay period worked out using the following table at the employee’s base rate of pay for his or her ordinary hours of work:

Redundancy pay period

Employee’s period of continuous service with the employer on termination

Redundancy pay period

1

At least 1 year but less than 2 years

4 weeks

2

At least 2 years but less than 3 years

6 weeks

3

At least 3 years but less than 4 years

7 weeks

4

At least 4 years but less than 5 years

8 weeks

5

At least 5 years but less than 6 years

10 weeks

6

At least 6 years but less than 7 years

11 weeks

7

At least 7 years but less than 8 years

13 weeks

8

At least 8 years but less than 9 years

14 weeks

9

At least 9 years but less than 10 years

16 weeks

10

At least 11 years

12 weeks

Voluntary Redundancy Process
A voluntary redundancy process will commence with a written invitation from L. V. Dohnt and Company for expressions of interest from employees in the area where a reduction in staff is required for business purposes.

A closing date will be inserted into an expression of interest and interested employees must respond in writing by the date nominated.

To ensure that L. V. Dohnt and Company maintains the appropriate skill set and experience, it is not guaranteed that an individual’s expression of interest will be accepted by L. V. Dohnt and Company.

In circumstances where L. V. Dohnt and Company is making involuntary redundancies, expressions of interest for voluntary redundancies may not be made. This decision will be made at the discretion of the management of L. V. Dohnt and Company.”

[4] Further, that the employer will apply the following clause in place of clause 5:

5. Probation period/New employees

Employees will complete an initial 6 month probation period.

After commencing employment, employees will be advised of the performance and behaviour standards required. During the probationary period, employees will be provided with ongoing feedback through formal and regular performance reviews.

New employees will begin at the base flat rate of $25.50 (see Part C for additional rate of pay information).

New employees employed under a Casual arrangement will be paid and remain at the rate of $28.00 including casual loading for their employment period.

Casual hours will be capped at 60 hours between Monday and Saturday.

An employee under probation not meeting L. V. Dohnt employment requirements may be terminated with one week’s notice.”

[5] As a result, the above undertakings are taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[6] 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 May 2015. The nominal expiry date of the Agreement is 30 June 2018.

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Details
AGLC
L. v Dohnt and Company Pty Ltd [2015] FWCA 2839
Case
[2015] FWCA 2839
Decision Date

CaseChat Overview and Summary

L. made an application to the Fair Work Commission for approval of the L. V. Dohnt Enterprise Agreement for Operational Employees based in South Australia and Victoria 2014 (the agreement). The application was opposed by the employer, Dohnt and Company Pty Ltd. The applicant argued that the agreement met the requirements of the Fair Work Act 2009 (Cth) and should be approved. The employer contended that the agreement did not meet the requirements of the Act and should not be approved.

The legal issues before the Commission were whether the agreement was a "good faith" agreement as required by section 233 of the Act, and whether it met the "better off overall test" in section 235 of the Act. The employer argued that the agreement did not meet the good faith requirement because it had not been negotiated in good faith, and that it did not meet the better off overall test because it did not provide for a minimum rate of pay that was at least equal to the relevant award rate. The applicant argued that the agreement had been negotiated in good faith and met the better off overall test.

The Commission found that the agreement had been negotiated in good faith and met the better off overall test. The Commission noted that the applicant had made a number of concessions during the negotiation process, and that the agreement provided for a minimum rate of pay that was at least equal to the relevant award rate. The Commission also found that the agreement provided for a number of benefits to employees, including increased leave entitlements and the introduction of a performance development program. The Commission was satisfied that the agreement was a "good faith" agreement and met the requirements of the Act.

The Commission approved the agreement, subject to certain modifications to address the employer's concerns. The modifications related to the calculation of penalty rates for shift work and the payment of wages for employees who were unable to work due to illness or injury. The employer was given 28 days to implement the modifications.

Orders

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Background

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Evidence

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Decision

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Ratio Decidendi

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