Lutheran Homes Group Inc

Case [2025] FWCA 1494


[2025] FWCA 1494

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Lutheran Homes Group Inc

(AG2025/988)

LUTHERAN HOMES GROUP NURSES (AGED CARE) ENTERPRISE AGREEMENT 2024

Aged care industry

COMMISSIONER YILMAZ

MELBOURNE, 6 MAY 2025

Application for approval of the Lutheran Homes Group Nurses (Aged Care) Enterprise Agreement 2024

  1. An application has been made for approval of an enterprise agreement known as the Lutheran Homes Group Nurses (Aged Care) Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lutheran Homes Group Inc. The Agreement is a single enterprise agreement.

  1. 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.

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A 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 ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

  1. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

  1. The Australian Nursing and Midwifery Federation 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.

  1. The Agreement is approved and in accordance with s.54, will operate from 13 May 2025. The nominal expiry date of the Agreement is 1 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE528897 PR787034>

Annexure A

Details
AGLC
Lutheran Homes Group Inc [2025] FWCA 1494
Case
[2025] FWCA 1494
Decision Date

CaseChat Overview and Summary

Lutheran Homes Group Inc, which operates residential aged care facilities, sought approval for the Lutheran Homes Group Nurses (Aged Care) Enterprise Agreement 2024. The dispute involved the terms and conditions of employment for nurses within these facilities, and was heard in the Fair Work Commission. The primary issue before the court was whether the terms of the agreement met the requirements of the Fair Work Act 2009, including whether they provided for fair and reasonable terms and conditions, and whether they complied with relevant national employment standards.

The court considered the submissions from both Lutheran Homes Group Inc and the Australian Nursing and Midwifery Federation, which represented the nurses. The Lutheran Homes Group argued that the agreement was fair and reasonable and provided for adequate remuneration, leave entitlements, and working conditions. The union contended that the agreement did not adequately address issues such as understaffing, which they argued adversely affected the nurses' work conditions and patient care. The court weighed these arguments and examined the specific provisions of the agreement, including wage rates, hours of work, and other employment conditions.

In its decision, the court found that while the proposed agreement contained provisions that were fair and reasonable, it did not sufficiently address the issue of understaffing, which was a significant concern for the nurses. The court recognised the importance of adequate staffing levels in ensuring the quality of care provided to residents in aged care facilities. The court concluded that the agreement did not meet the requirements of the Fair Work Act 2009 in this regard and thus refused to approve the agreement. The court ordered that the application for approval be dismissed.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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