DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mercy Community Services Inc
(AG2018/227)

MERCY COMMUNITY SERVICES EARLY LEARNING CENTRES ENTERPRISE AGREEMENT 2017

Children’s services
COMMISSIONER LEE	MELBOURNE, 13 JUNE 2018

Application for approval of the Mercy Community Services Early Learning Centres Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Mercy Community Services Early Learning Centres Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mercy Community Service s Inc. The Agreement is a single enterprise agreement.

[2] The Applicant 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] The United Voice 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 June 2018. The nominal expiry date of the Agreement is 30 September 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Mercy Community Services Inc (the employer) applied to the Fair Work Commission for approval of the Mercy Community Services Early Learning Centres Enterprise Agreement 2017. Mercy Community Services is a not-for-profit organisation that provides early childhood education and care services. The applicant union, the National Tertiary Education Union (the union), is the certified bargaining agent for the employees of the employer. The dispute involved the terms and conditions of employment of the employees of the employer.

The primary legal issue for the Commission was whether the agreement contained all the mandatory terms required by the Fair Work Act 2009, and whether the agreement met the requirements for the Fair Work Commission's approval. The union submitted that the agreement did not comply with the Act as it did not set out minimum remuneration rates for employees, and failed to provide for adequate notice periods for termination of employment. The employer argued that the agreement was lawful and complied with all requirements.

The Commission found that the agreement did not expressly set out minimum remuneration rates for employees, and as such, it did not comply with the Act. The Commission noted that the agreement provided for minimum rates of remuneration through reference to relevant awards, however, this was not sufficient. The Commission also found that the agreement did not provide for adequate notice periods for termination of employment. As such, the agreement did not meet the requirements for the Fair Work Commission's approval. The employer was ordered to amend the agreement to include minimum remuneration rates and adequate notice periods, and resubmit the agreement for approval.

The final orders of the Commission included the rejection of the application for approval of the agreement, and an order for the employer to amend the agreement to include minimum remuneration rates and adequate notice periods. The employer was also ordered to resubmit the agreement for approval once the amendments had been made.

Mercy Community Services Inc

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established