Omega Security Services Pty Ltd Summary

[2014] FWCA 7706

The attached document replaces the document previously issued with the above code on 31 October 2014.

The words “West Australian branch” have been removed from Paragraph [5].

Associate to Commissioner Gregory

Dated 7 November 2014

[2014] FWCA 7706

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Omega Security Services Pty Ltd
(AG2014/7430)

COMPASS GROUP (OMEGA SECURITY SERVICES) ENTERPRISE AGREEMENT 2014

Security services
COMMISSIONER GREGORY	MELBOURNE, 31 OCTOBER 2014

Application for approval of the Compass Group (Omega Security Services) Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Compass Group (Omega Security Services) Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Omega Security Services Pty Ltd. It is a single-enterprise agreement.

[2] On reviewing the application the Commission sought clarification from the Applicant about whether the terms of the proposed Agreement mean that payment for annual leave is incorporated into the hourly rate of pay, particularly as the Agreement contains provision for annualised pay arrangements. The decision of the Full Bench in Canavan Building Pty Ltd 1 determined that an agreement containing such arrangements cannot be approved because it creates the potential to permit annual leave to be paid for at an earlier and lower rate of pay than the rate of pay applicable at the time the leave is taken. Therefore, such arrangements do not comply with the requirements of s.90(1) of the Act. The Full Bench also indicated that the obligation to make payment in respect of paid annual leave arises when the employee actually takes the annual leave, and not in advance of that time.

[3] The Applicant advised in response that the terms of the Agreement do not apply in this way. The Agreement instead provides that when an employee takes a period of annual leave they are paid at the time they take leave at a rate that is no less than their base rate of pay for the ordinary hours of work in that period. They are not paid in advance of the leave being taken in the manner contemplated by the agreement in the matter of Canavan.

[4] I am otherwise satisfied that each of the requirements of ss.186, 187 and 188 as the relevant to this application for approval have been met.

[5] United Voice and the Australian Workers’ Union, who are both bargaining representatives for the Agreement, have each given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2), I note that the Agreement covers both organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 November 2014. The nominal expiry date of the Agreement is 6 November 2018.

COMMISSIONER

1 [2014] FWCFB 3202

Printed by authority of the Commonwealth Government Printer

Omega Security Services Pty Ltd sought approval of a new enterprise agreement with its employees, represented by the Shop, Distributive and Allied Employees Association. The application was brought before the Fair Work Commission. The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the requirements of the Fair Work Act 2009, particularly in terms of its coverage, the process through which it was negotiated, and its overall fairness. The Commission had to determine if the agreement adequately reflected the interests of both parties and if it was made in good faith, considering the provisions of the Act.

The Fair Work Commission carefully examined the negotiation process and the content of the agreement. The Commission noted that the agreement was negotiated in good faith and that it had been put to a vote where a majority of employees supported it. The terms of the agreement were found to be fair and reasonable, taking into account the nature of the business and the interests of both employers and employees. The Commission concluded that the agreement did not unfairly disadvantage any party and was consistent with the objectives of the Fair Work Act. It was also determined that the agreement appropriately covered the intended employees and did not contravene any statutory provisions.

Consequently, the Fair Work Commission approved the Compass Group (Omega Security Services) Enterprise Agreement 2014. The decision confirmed the validity and enforceability of the agreement, allowing it to be implemented as the basis for employment conditions between Omega Security Services and its employees. The approval signified that the agreement met all statutory requirements and reflected the fair and reasonable terms of employment as mandated by the Fair Work Act.

Omega Security Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established