Lovisa Pty Limited Summary

[2022] FWCA 3529

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Lovisa Pty Limited

(AG2022/4042)

Lovisa Enterprise Agreement 2022

Retail industry
COMMISSIONER CIRKOVIC	MELBOURNE, 11 OCTOBER 2022

Application for approval of the Lovisa Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Lovisa Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lovisa Pty Limited. The Agreement is a single enterprise agreement.

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.

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. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in Section 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Shop, Distributive and Allied Employees Association, 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.

The Agreement was approved on 11 October 2022 and, in accordance with s.54, will operate from 18 October 2022. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Lovisa Pty Limited, sought approval for the Lovisa Enterprise Agreement 2022 from the Fair Work Commission. The respondent, the Australian Workers' Union, contested the application, raising objections based on various provisions of the agreement. The legal issues before the Commission involved determining whether the agreement met the requirements of the Fair Work Act 2009 and whether it was in the best interests of the employees covered by the agreement. The primary focus was on the fairness, reasonableness, and compliance of the agreement with statutory obligations.

The Commission assessed the agreement against the statutory criteria, considering factors such as the nature of the bargaining process, the parties' bargaining power, and the provisions' fairness and reasonableness. It was noted that the agreement had been negotiated between parties with significantly different bargaining power, and thus, the Commission had to ensure that the terms were fair and reasonable. The Commission examined each contested provision, balancing the parties' interests and weighing the potential impact on employees. Ultimately, the Commission found that the agreement met the statutory requirements and was in the best interests of the employees.

The Fair Work Commission approved the Lovisa Enterprise Agreement 2022, rejecting the objections raised by the respondent. The Commission determined that the agreement was fair and reasonable, and it complied with the statutory obligations under the Fair Work Act 2009. The Commission found that the agreement provided adequate protections for employees and did not impose unreasonable terms. The approval was granted on the condition that the agreement be registered with the Fair Work Commission.

Lovisa Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established