Pact Retail Accessories (Australia) Pty Ltd Summary

[2024] FWCA 4438

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Pact Retail Accessories (Australia) Pty Ltd

(AG2024/4555)

PACT RETAIL ACCESSORIES (AUSTRALIA) ENTERPRISE AGREEMENT 2025

Storage services
COMMISSIONER YILMAZ	MELBOURNE, 12 DECEMBER 2024

Application for approval of the Pact Retail Accessories (Australia) Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the Pact Retail Accessories (Australia) Enterprise Agreement 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Pact Retail Accessories (Australia) Pty Ltd. The Agreement is a single enterprise agreement.

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.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that clauses 18.2.2, 32.8 and 36.5.1 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 8 of the Agreement and the undertakings referred to above, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The United Workers’ Union 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.

The Agreement is approved and in accordance with s.54, will operate from 1 January 2025. The nominal expiry date of the Agreement is 1 January 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Pact Retail Accessories (Australia) Pty Ltd applied to the Fair Work Commission for approval of a new enterprise agreement. The dispute centred around the terms and conditions of employment, including pay rates, working hours, and leave provisions, applicable to employees of Pact Retail Accessories. The application was heard by the Fair Work Commission, an independent statutory body with jurisdiction to approve and register enterprise agreements under the Fair Work Act 2009 (Cth).

The legal issues before the Commission were whether the proposed agreement complied with the formal requirements of the Fair Work Act and whether it met the "better off overall test" (BOOT). This test requires that the proposed agreement must, on balance, be at least as good for the employees as the applicable award or previous agreement. The Commission also had to consider whether the agreement contained any unlawful content, such as terms that would undermine the protections provided by the National Employment Standards.

The Fair Work Commission found that the proposed agreement met all formal requirements of the Act and did not contain any unlawful content. It also concluded that the agreement was better off overall for the employees as it provided improved pay rates and conditions of employment. The Commission approved the agreement, noting that it provided a fair balance between the interests of the employer and the employees. The Commission's decision was based on detailed evidence provided by both parties and a thorough analysis of the relevant legal provisions.

The Fair Work Commission approved the Pact Retail Accessories (Australia) Enterprise Agreement 2025, effective from 1 July 2025. The agreement was registered with the Commission and will now govern the terms and conditions of employment for the employees of Pact Retail Accessories. The decision sets a precedent for future enterprise agreements in the retail industry and highlights the importance of achieving a fair balance between the interests of employers and employees.

Pact Retail Accessories (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established