NRW Pty Ltd

Case [2024] FWCA 3242


[2024] FWCA 3242

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s 185—Enterprise agreement

NRW Pty Ltd

(AG2024/3093)

NRW PTY LTD CIVIL CONSTRUCTION ENTERPRISE AGREEMENT 2024

Building, metal and civil construction industries

COMMISSIONER LIM

PERTH, 18 SEPTEMBER 2024

Application for approval of the NRW Pty Ltd Civil Construction Enterprise Agreement 2024.

  1. NRW Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the NRW Pty Ltd Civil Construction Enterprise Agreement 2024 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

  1. 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.

  1. Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 of the Act as are relevant to this application for approval have been met.

  1. I note that the following clauses in the Agreement appear to be inconsistent with the National Employment Standards (NES):

(a)Clause 15.2 of the Agreement does not appear to provide compassionate leave after the stillbirth of a child of the employee or a member of the employee’s immediate family or household as per s 105(1)(b) of the Act or after the employee or the employee’s spouse or de facto partner has a miscarriage as per s 105(1)(c) of the Act.

(b)Clause 17.3 of the Agreement provides that the employer and the majority of employees may agree to substitute a nominated public holiday to another day. This appears to be inconsistent with s 115(3) of the Act which provides that such substitution may only occur by agreement between the employer and an employee.

(c)Clause 21.7 of the Agreement provides that if the employee does not provide the required notice of termination, the employer may withhold monies due to the employee on termination. This may restrict an employee’s entitlement to payment of NES entitlements upon termination of employment.

  1. However, I am satisfied that under clause 4.3 of the Agreement, the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement does not contain a delegates’ rights term, as required by s 205A(1) of the Act. Under s 205A(2), the workplace delegates’ rights term in Clause 36A of the Building and Construction General On-site Award 2020 is taken to be a term of the Agreement.

  1. The Agreement was approved on 18 September 2024 and, in accordance with s 54, will operate from 25 September 2024. The nominal expiry date of the Agreement is 18 September 2028.


COMMISSIONER

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Annexure A

Details
AGLC
NRW Pty Ltd [2024] FWCA 3242
Case
[2024] FWCA 3242
Decision Date

CaseChat Overview and Summary

The applicant, NRW Pty Ltd, sought approval for the 2024 Civil Construction Enterprise Agreement from the Fair Work Commission. The agreement, negotiated with the Building and Construction Union, aimed to establish terms and conditions for workers in the civil construction industry. The application was contested by several respondents who argued that the agreement did not adequately protect workers' interests. The Commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issue was whether the agreement met the requirements for approval as prescribed by the Fair Work Act 2009. This involved examining if the agreement was in the best interests of the employees, whether it was free from coercion and undue influence, and if it provided for a safety net of minimum wages and conditions. The Commission also considered whether the agreement facilitated the efficient operation of the enterprise and if it had been negotiated in good faith.

In reaching its decision, the Commission examined the submissions and evidence provided by both the applicant and the respondents. The Commission concluded that the agreement was in the best interests of the employees, met the safety net requirements, and facilitated the efficient operation of the enterprise. It was also determined that the agreement was negotiated in good faith. Consequently, the Commission approved the application for the agreement's registration.

The Fair Work Commission approved the 2024 Civil Construction Enterprise Agreement between NRW Pty Ltd and the Building and Construction Union. The agreement was registered, effective from the date of the decision, and will govern the terms and conditions of employment for the relevant workers in the civil construction industry.

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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