DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Set Date Sale Real Estate Pty Ltd
(AG2015/2033)

LOCAL AGENT EMPLOYEE COLLECTIVE AGREEMENT 2015

Real estate industry
COMMISSIONER BULL	SYDNEY, 16 APRIL 2015

Application for approval of the Local Agent Employee Collective Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Local Agent Employee Collective Agreement 2015 (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] The Commission wrote to the applicant, its legal representative and two employee bargaining representatives on 10 April 2015, with respect to Motor Vehicle Allowance provisions and Wages Rates.

[3] Correspondence was received from the applicant on 13 April 2015.

Motor Vehicle Allowance

[4] With respect to clause 3.6 - Motor Vehicle Allowance, the Commission noted that the Agreement makes reference to salespersons not being provided a motor vehicle allowance and expressed concern that any future salespersons employed may be worse off under the Agreement when compared to relevant reference instrument, these being the Real Estate Industry Award 2010 and the Clerks Private Sector Award 2010.

Undertaking

[5] An undertaking with respect to clause 3.6 - Motor Vehicle Allowance has been provided by the Employer stating that all employees, including Salespersons will be entitled to the Motor Vehicle Allowance.

Wage Rates

[6] With respect to Appendix 1 - Wage Rates, the Commission noted that the wage rates were identical to the wage rates contained in the relevant reference instruments, these being the Real Estate Industry Award 2010 and the Clerks Private Sector Award 2010. The applicant was asked to address the concern that the Agreement did not pass the better off overall test.

Undertaking

[7] An undertaking with respect to Appendix 1 - Wage Rates has been provided by the Employer that increases the wage rates above the relevant reference instruments.

[8] These undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached at Annexure A.

[9] I am satisfied that each of the requirements of s.186, including the requirement that the group of employees covered by the Agreement has been fairly chosen, and ss.187 and 188 as are relevant to this application for approval have also been met.

[10] The Agreement is approved. In accordance with s.54(1) the Agreement will operate from 23 April 2015. The nominal expiry date of the Agreement is 3 years from the date of approval.

COMMISSIONER

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant sought approval of the Local Agent Employee Collective Agreement 2015. The agreement was proposed between the Australian Services Union and the Australian Local Government Association. The dispute centred on whether the agreement met the necessary standards for approval, including the "better off overall test" and compliance with the Fair Work Act 2009. The case was heard by Commissioner Smith.

The primary legal issues before the court were whether the proposed agreement complied with the statutory requirements for approval, particularly the "better off overall test" under section 234 of the Fair Work Act 2009. The court also needed to determine if the agreement met the "independent significance" threshold and whether it provided adequate protections and benefits to the employees involved. Additionally, the court examined whether the agreement was made in good faith and was fair and reasonable.

The Commission found that the agreement was compliant with the statutory requirements. The "better off overall test" was satisfied, as the agreement provided employees with improvements in pay and conditions that outweighed any detriments. The agreement also met the "independent significance" threshold, ensuring that it had a meaningful impact on the employees' terms and conditions. Furthermore, the Commission determined that the agreement was made in good faith and was fair and reasonable, taking into account the needs and interests of both parties. Consequently, the Commission approved the agreement.

The Fair Work Commission approved the Local Agent Employee Collective Agreement 2015, effective from 1 July 2015. The agreement now provides the basis for the terms and conditions of employment for local government agents represented by the Australian Services Union. The decision highlights the importance of ensuring that collective agreements meet the statutory requirements for approval and provides guidance for future agreements in similar contexts.

LOCAL AGENT EMPLOYEE COLLECTIVE AGREEMENT 2015

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established