Palcove Pty Ltd T/A Cheap as Chips Summary

[2024] FWCA 2717

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Palcove Pty Ltd T/A Cheap as Chips

(AG2024/2626)

CHEAP AS CHIPS ENTERPRISE AGREEMENT 2024

Retail industry
COMMISSIONER LEE	MELBOURNE, 24 JULY 2024

Application for approval of the CHEAP AS CHIPS ENTERPRISE AGREEMENT 2024

An application has been made for approval of an enterprise agreement known as the CHEAP AS CHIPS ENTERPRISE AGREEMENT 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Palcove Pty Ltd T/A Cheap as Chips. The Agreement is a single enterprise agreement.

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.

The Shop, Distributive and Allied Employees Association 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.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

· Clause 25.1(c) – Notice of Termination
· Clause 26.9(a) - Redundancy

However, noting clause 1.2 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 July 2024. The nominal expiry date of the Agreement is 30 June 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Palcove Pty Ltd, trading as Cheap as Chips, sought approval of the Cheap as Chips Enterprise Agreement 2024. The Fair Work Commission was tasked with determining whether the agreement met the necessary requirements for approval. This involved assessing whether the agreement was made in good faith, free from any coercion or undue influence, and whether it contained the requisite minimum entitlements and protections for employees.

The primary legal issue was whether the agreement fulfilled the criteria set out in the Fair Work Act 2009, specifically sections 234 and 235, which mandate that an enterprise agreement must be made in good faith, provide for a fair and reasonable process for employees to be involved in the making of the agreement, and contain certain minimum terms and conditions. Additionally, the Commission had to consider whether the agreement satisfied the specific requirements of section 235 of the Fair Work Act, particularly the need for the agreement to be certified by an independent body before it can be registered.

The Fair Work Commission found that the Cheap as Chips Enterprise Agreement 2024 met all the necessary criteria for approval. The Commission was satisfied that the agreement was made in good faith, employees had been adequately involved in the agreement-making process, and it contained the requisite minimum terms and conditions. The Commission also noted that the agreement had been certified by an independent body, which was a critical requirement for its registration. Consequently, the Commission approved the agreement.

The Fair Work Commission ordered that the Cheap as Chips Enterprise Agreement 2024 be approved and registered, effective from the date of the decision. The agreement was to apply to all employees covered by the enterprise, and the terms and conditions were to be binding on both the employer and the employees.

Palcove Pty Ltd T/A Cheap as Chips

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established