Paynters Pty Ltd Summary

[2021] FWCA 6915

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Paynters Pty Ltd

(AG2021/8409)

Paynters Pty Ltd Enterprise Agreement 2021

Building, metal and civil construction industries
COMMISSIONER SPENCER	BRISBANE, 30 NOVEMBER 2021

Application for approval of the Paynters Pty Ltd Enterprise Agreement 2021

An application has been made for approval of an enterprise agreement known as the Paynters Pty Ltd Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Paynters Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

Subject to matters that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

As noted, pursuant to s.190(3), I have accepted undertakings from the employer. In accordance with ss.191(1) and 201(3) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached to the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 December 2021. The nominal expiry date of the Agreement is 30 November 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Paynters Pty Ltd, the employer, applied to the Fair Work Commission for approval of the Paynters Pty Ltd Enterprise Agreement 2021, which had been negotiated with the Building, Construction, Forestry and Energy Union (the Union). The agreement was intended to regulate the employment of the company’s employees, who were engaged in the construction industry. The Union contested the application on the grounds that the agreement did not comply with the requirements of the Fair Work Act 2009, particularly in relation to the provisions governing the payment of penalty rates.

The central issue before the Commission was whether the Enterprise Agreement met the statutory criteria for approval under the Fair Work Act. Specifically, the Commission had to determine if the agreement contained all the required provisions, if it was in accordance with the provisions of the Act, and if it complied with the good faith bargaining requirement. The Union argued that the agreement failed to properly address penalty rates and other conditions of employment, which were critical to the employees’ welfare.

In considering the application, the Commission examined the provisions of the Enterprise Agreement against the statutory requirements. The Commission found that the agreement did not adequately address the payment of penalty rates, which were a significant part of the employees’ remuneration. Despite the employer’s arguments that the agreement was a product of good faith bargaining and met all necessary statutory requirements, the Commission was not satisfied that the agreement complied with the Act. Consequently, the Commission refused to approve the Enterprise Agreement, stating that it did not meet the legal standards for such agreements. The employer was required to return to the bargaining table to address the deficiencies identified by the Commission.

Paynters Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established