Precept Services Business Trust ITF Precept Services Pty Ltd T/A Precept Services Pty Ltd

[2014] FWCA 3371

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Precept Services Business Trust ITF Precept Services Pty Ltd T/A Precept Services Pty Ltd
(AG2014/938)

PRECEPT SERVICES PTY LTD ENTERPRISE AGREEMENT 2014 - 2018

Electrical contracting industry
DEPUTY PRESIDENT GOSTENCNIK	CANBERRA, 21 MAY 2014

Application for approval of the Precept Services Pty Ltd Enterprise Agreement 2014 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Precept Services Pty Ltd Enterprise Agreement 2014 - 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Precept Services Business Trust ITF Precept Services Pty Ltd. The agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The notice of employee representational rights issued by the Applicant to employees of Precept Services Business Trust ITF Precept Services Pty Ltd did not strictly comply with the prescribed form as required under s. 174 of the Act. This is because it referred to “Fair Work Australia” instead of “Fair Work Commission”. It is obvious that the Applicant had used the form approved prior to 1 January 2013. I am however satisfied that s. 25B of the Acts Interpretation Act 1901 applies to the notice with the consequence that reference to “Fair Work Australia” is taken to be of reference to “Fair Work Commission”. The provisions of s. 174 do not express a contrary intention which would have the result that s. 25B not apply. In the circumstances I am also satisfied the issuing of the notice in the form pre-2013 did not have any effect on the employee’s rights to appoint a bargaining representative.

[6] The Agreement was approved on 21 May 2014 and, in accordance with s.54, will operate from 28 May 2014. The nominal expiry date of the Agreement is 21 May 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved Precept Services Business Trust ITF, which sought approval for the Precept Services Pty Ltd Enterprise Agreement 2014-2018. The dispute was heard by the Fair Work Commission, which is responsible for overseeing and approving enterprise agreements under the Fair Work Act 2009. The nature of the agreement was to establish terms and conditions of employment for the employees of Precept Services Pty Ltd. The Trust argued that the agreement was fair and reasonable, while no other party contested the application.

The legal issues the court needed to address were whether the agreement complied with the statutory requirements and whether it was fair and reasonable in all its terms. The Fair Work Act mandates that an enterprise agreement must not provide for terms and conditions that are less favourable than the applicable award or safety net. The court had to ensure that the agreement did not undercut minimum standards and that it was made in good faith. Additionally, the court considered whether the agreement had been genuinely negotiated and if the parties had taken all reasonable steps to reach an agreement.

The Fair Work Commission examined the agreement's provisions, taking into account the statutory obligations and the specific circumstances of the employees. The court found that the agreement complied with the requirements of the Fair Work Act and was fair and reasonable. The Trust had demonstrated that it had genuinely negotiated the agreement and had made all reasonable efforts to reach a consensus. The agreement was considered to be in the best interests of the employees, providing them with terms and conditions that were not less favourable than the applicable award or safety net. The court approved the agreement based on these findings.

The final orders of the court were to approve the Precept Services Pty Ltd Enterprise Agreement 2014-2018 as meeting the statutory requirements and being fair and reasonable. This approval allowed the agreement to be registered, and it would govern the terms and conditions of employment for the employees of Precept Services Pty Ltd for the specified period. The decision reinforced the importance of ensuring that enterprise agreements align with legal standards and protect the interests of employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established