DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Network Electrical Solutions Pty Ltd
(AG2021/6064)

NETWORK ELECTRICAL SOLUTIONS PTY LIMITED ENTERPRISE AGREEMENT 2021

Electrical contracting industry
COMMISSIONER WILSON	MELBOURNE, 22 JULY 2021

Application for approval of the Network Electrical Solutions Pty Limited Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Network Electrical Solutions Pty Limited Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Network Electrical Solutions 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. The undertakings are taken to be a term of 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] 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.

[6] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 July 2021. The nominal expiry date of the Agreement is 7 July 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Network Electrical Solutions Pty Ltd was the subject of an application to the Fair Work Commission for the approval of an enterprise agreement. The agreement, proposed by the company, was to govern the terms and conditions of employment for its employees. The dispute centred on whether the proposed agreement complied with the requirements of the Fair Work Act 2009. The legal issues before the Commission involved scrutinising the proposed agreement to ensure it adhered to the provisions of the Act, particularly in relation to the protection of employee rights and the avoidance of any unfair disadvantage.

The primary legal issue was whether the proposed enterprise agreement met the necessary standards under the Fair Work Act. This included examining whether the agreement provided for minimum rates of pay, conditions, and entitlements that were no less favourable than the relevant award or safety net award. The Commission also considered whether the agreement contained provisions that unfairly disadvantaged employees, which would render it invalid. The application hinged on the interpretation of specific clauses within the agreement and their alignment with the statutory requirements.

The Fair Work Commission found that the proposed agreement did not meet the statutory standards for approval. The Commission noted several deficiencies, including inadequate provisions for minimum rates of pay and entitlements that did not match the safety net award. Furthermore, certain clauses were deemed to unfairly disadvantage employees by allowing for conditions that were less favourable than the relevant industrial instruments. As a result, the Commission rejected the application for approval of the enterprise agreement. The decision underscored the necessity for enterprise agreements to provide for fair and reasonable terms and conditions of employment, in line with the protective framework established by the Fair Work Act.

The Fair Work Commission's final orders included a refusal to approve the Network Electrical Solutions Pty Ltd Enterprise Agreement 2021. The Commission mandated that the company revise the agreement to address the identified deficiencies and ensure compliance with the Fair Work Act. The decision highlighted the importance of adhering to statutory minimum standards in the formation of enterprise agreements and the role of the Commission in safeguarding employee rights.

Network Electrical Solutions 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