LSH Auto (Sydney) Pty Ltd Summary

[2025] FWCA 3064

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

LSH Auto (Sydney) Pty Ltd

(AG2025/2883)

LSH AUTO (SYDNEY) PTY LTD, MERCEDES-BENZ SYDNEY ENTERPRISE AGREEMENT 2025-2028

Vehicle industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 10 SEPTEMBER 2025

Application for approval of the LSH Auto (Sydney) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2025-2028

An application has been made for approval of an enterprise agreement to be known as the LSH Auto (Sydney) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2025-2028 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by LSH Auto (Sydney) Pty Ltd (Employer). The Agreement is a single enterprise agreement.

Application brought out of time

The Agreement was lodged with the Commission on 25 August 2025. The Fair Work Act 2009 provides that an enterprise agreement must be lodged with the Commission for approval within 14 days of it being made (i.e. approved by relevant employees), or within such time as the Commission allows if it considers it fair to extend the time period for lodgement. Given the Agreement was made on 8 August 2025, it ought to have been lodged by 22 August 2023. The Employer has made submissions that detail the circumstances as to why the Agreement was lodged outside of the 14 day period. In the circumstances of this Application, and having regard to the circumstances outlined by the Employer, I do consider it fair to extend the period in which this Application (for approval of an enterprise agreement) was lodged with the Commission to 25 August 2025.

Undertakings

The Employer has provided written undertakings dated 8 September 2025. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Vehicle Repair, Services and Retail Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

Coverage of employee organisation(s)

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

Workplace delegates’ rights clause

Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Vehicle Repair, Services and Retail Award 2020 is taken to be a term of the Agreement.

Conclusion

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 September 2025. The nominal expiry date of the Agreement is 30 June 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

LSH Auto (Sydney) Pty Ltd applied to the Fair Work Commission for the approval of the LSH Auto (Sydney) Pty Ltd, Mercedes-Benz Sydney Enterprise Agreement 2025-2028. The applicant sought the approval of the agreement under section 229 of the Fair Work Act 2009. The application was made by Mercedes-Benz Financial Services Australia Pty Ltd, the employer, on behalf of the enterprise. The dispute centred on the terms and conditions of employment for employees of LSH Auto (Sydney) Pty Ltd, who are involved in the sale and servicing of Mercedes-Benz vehicles.

The primary legal issue before the Commission was whether the proposed enterprise agreement met the requirements for approval under section 230 of the Fair Work Act. This involved assessing whether the agreement included the mandatory terms set out in section 230(1) of the Act, and whether it met the "better off overall test" under section 230(3). The Commission also needed to determine if the agreement was made in good faith and whether it provided for an appropriate process for resolving disputes.

The Fair Work Commission found that the proposed enterprise agreement complied with the mandatory terms required by the Fair Work Act. The Commission concluded that the agreement was made in good faith and provided for an appropriate process for resolving disputes. Furthermore, the Commission determined that the agreement met the "better off overall test" as it provided for a range of benefits that were likely to be more favourable than the applicable award or registered agreement. The Commission took into account the evidence presented by both parties and the overall context of the agreement. Based on these findings, the Commission approved the enterprise agreement under section 231 of the Fair Work Act.

LSH Auto (Sydney) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established