Madad Sales Pty Ltd T/A Sealy of Australia

[2024] FWCA 4573

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Madad Sales Pty Ltd T/A Sealy of Australia

(AG2024/4690)

SEALY OF AUSTRALIA ENTERPRISE AGREEMENT 2024 - 2026

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 19 DECEMBER 2024

Application for approval of the Sealy of Australia Enterprise Agreement 2024-2026

Madad Sales Pty Ltd T/A Sealy of Australia (the Employer) has made an application for approval of an enterprise agreement known as the Sealy of Australia Enterprise Agreement 2024 – 2026 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (Cth) (the FW Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the FW Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 9 August 2024 and the Agreement was made on 28 November 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190, as are relevant to this application for approval, has been met.

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

· Clause 18.1: Redundancy Entitlement

· Clause 20.1.5: Notice of Termination

· Clause 34: Parental Leave

· Clauses 35.3.3 and 35.4.3: Notice of Personal/Carer’s Leave

· Clause 37.4.1: Public Holiday Substitution

However, noting clause 3.5 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Construction, Forestry and Maritime Employees Union being a bargaining representative for the Agreement, has given notice under s 183 of the FW Act that it wants the Agreement to cover it. In accordance with s 201(2) (and based on the declaration provided by the organisation), I note that the Agreement covers the organisation.

The Agreement was approved on 19 December 2024 and, in accordance with s.54, will operate from 26 December 2024. The nominal expiry date of the Agreement is 15 October 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Madad Sales Pty Ltd, trading as Sealy of Australia, applied for the approval of the Sealy of Australia Enterprise Agreement 2024-2026 before the Fair Work Commission. The applicant sought to finalise the terms of employment for the employees within its organisation, aiming for an agreement that would govern their working conditions over the specified period. The dispute primarily centred around the provisions of the Fair Work Act 2009, focusing on whether the agreement met the statutory requirements for approval by the Commission.

The central legal issue before the Commission was whether the Sealy of Australia Enterprise Agreement 2024-2026 complied with the statutory criteria for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement fairly and accurately reflected the terms of employment for the relevant employees, ensuring it adhered to the legal framework governing enterprise agreements. Additionally, the Commission considered whether the agreement had been made free from any improper influence or coercion, which would render it invalid.

The Commission found that the Sealy of Australia Enterprise Agreement 2024-2026 was compliant with the requirements of the Fair Work Act 2009. It confirmed that the agreement accurately reflected the terms of employment for the employees, and there was no evidence of any improper influence or coercion in its formation. The agreement was deemed to provide for fair and reasonable terms, considering the interests of both the employer and the employees. Consequently, the Commission approved the agreement, recognising it as a valid and enforceable enterprise agreement for the specified period.

The Fair Work Commission approved the Sealy of Australia Enterprise Agreement 2024-2026, effective from the date of the decision and continuing until the end of the specified period. This decision finalises the terms of employment for the employees, and the agreement will govern their working conditions accordingly. The approval ensures that the agreement meets the statutory requirements under the Fair Work Act 2009 and provides a fair framework for both the employer and employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established