DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Lucas Drilling Pty Limited T/A Lucas Drilling Pty Ltd
(AG2019/917)

DIRECTIONAL DRILLING EMPLOYEES AGREEMENT 2019

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 30 APRIL 2019

Application for approval of the Directional Drilling Employees Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Directional Drilling Employees Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lucas Drilling Pty Limited T/A Lucas Drilling 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.

[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] 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.

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

• Clause 2.3.6 – Termination of employment;

• Clause 5.1 – Annual leave;

• Clause 2.5.3 – Abandonment of employment.

However, noting clause 4 of the undertaking, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 May 2019. The nominal expiry date of the Agreement is 6 May 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Lucas Drilling Pty Limited T/A Lucas Drilling Pty Ltd recently sought approval of the Directional Drilling Employees Agreement 2019 in the Fair Work Commission. The applicant argued that the agreement contained terms and conditions of employment that were more favourable than the relevant national award. This application arose out of a dispute between the applicant and the union representing the employees, which led to the need for the court to assess the terms of the proposed agreement.

The central legal issue before the court was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the court had to determine if the agreement contained terms that were more beneficial to employees than those provided by the relevant award, and if the agreement was made in good faith. The court also had to consider whether the agreement complied with procedural requirements, including whether it had been certified as a genuine agreement.

In assessing the application, the court examined the terms of the proposed agreement, the evidence provided by both parties, and relevant legislative provisions. The court found that the agreement did indeed contain terms that were more favourable to employees than those in the award, and that the agreement had been made in good faith. The court also found that the agreement complied with all procedural requirements, including the certification process. Based on these findings, the court approved the Directional Drilling Employees Agreement 2019.

The final orders of the court approved the Directional Drilling Employees Agreement 2019, effective from the date of the decision. The court's approval means that the terms of the agreement will apply to the employees covered by the agreement, and will take precedence over the relevant award provisions. The union and the applicant are now bound by the terms of the approved agreement, which provides a more favourable set of employment conditions for the employees.

Lucas Drilling Pty Limited T/A Lucas Drilling Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established