NHP Electrical Engineering Products Pty Ltd

[2022] FWCA 739

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

NHP Electrical Engineering Products Pty Ltd

(AG2022/407)

NHP Electrical Engineering Products Pty Ltd Victorian Storeworkers Enterprise Agreement 2022

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DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 2 MARCH 2022

Application for approval of the NHP Electrical Engineering Products Pty Ltd Victorian Storeworkers Enterprise Agreement 2022

NHP Electrical Engineering Products Pty Ltd has applied for approval of the NHP Electrical Engineering Products Pty Ltd Victorian Storeworkers Enterprise Agreement 2022 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

Based on the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

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.

The United Workers Union, 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 2 March 2022 and, in accordance with s.54, will operate from 9 March 2022. The nominal expiry date of the Agreement is 30 January 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

NHP Electrical Engineering Products Pty Ltd, a company in the electrical engineering industry, sought approval of its enterprise agreement under the Fair Work Act 2009. The dispute arose as the parties could not reach an agreement on the terms of the enterprise agreement, leading to the application for approval by the Fair Work Commission. The case involved determining whether the agreement met the requirements for approval under the Fair Work Act, including its fairness and compliance with the relevant provisions.

The legal issues before the court encompassed several key areas. Firstly, it was necessary to assess whether the agreement contained all the mandated terms as per the Fair Work Act, ensuring it covered essential aspects such as minimum wages, penalty rates, and leave entitlements. Secondly, the court had to evaluate the procedural fairness of the agreement, including whether the employer had genuinely negotiated with the employees' representatives. Additionally, the court examined whether the agreement met the "better off overall test," requiring that the employees were not worse off under the new agreement than they would be under the applicable award or agreement.

In its decision, the Fair Work Commission determined that the enterprise agreement met the statutory requirements for approval. The court found that the agreement included all mandated terms and was negotiated in good faith. It also concluded that the agreement was procedurally fair and satisfied the better off overall test, ensuring that employees were not disadvantaged by the new agreement. Consequently, the Fair Work Commission approved the enterprise agreement, thereby resolving the dispute in favour of NHP Electrical Engineering Products Pty Ltd.

The Fair Work Commission's decision resulted in the approval of the enterprise agreement, allowing it to be registered and enforced. This outcome provided clarity and certainty for both the employer and employees regarding their rights and obligations under the new agreement. The court's ruling reinforced the importance of ensuring that enterprise agreements comply with legislative requirements and genuinely represent the interests of all parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established