Pring Rural Employment Pty Ltd Summary

[2024] FWCA 1037

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Pring Rural Employment Pty Ltd

(AG2024/365)

PRING RURAL EMPLOYMENT PTY LTD ENTERPRISE AGREEMENT 2023

Agricultural industry
COMMISSIONER HUNT	BRISBANE, 22 MARCH 2024

Application for approval of the Pring Rural Employment Pty Ltd Enterprise Agreement 2023

Pring Rural Employment Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Pring Rural Employment Pty Ltd Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, commencing operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 23 November 2023 and the Agreement was made on 9 February 2024. Accordingly, the genuine agreement requirements and the better off overall test requirements are those applying on and from 6 June 2023.

The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings on a number of the concerns raised. I advised the Employer on 20 March 2024 that I continued to hold concerns. The employer responded, providing amended undertakings. A copy of the undertakings is attached at Annexure A. There were no bargaining representatives for the Agreement. Therefore, the Commission was not required to seek the views of any person or organisations, for the purposes of satisfying s.190(4) of the Act.

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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

I have taken into consideration the material filed in the Commission. 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. For the purpose of ss.186(3) and (3A) of the Act the Agreement, I note that the Agreement covers all of the employees of the Employer.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 March 2024. The nominal expiry date of the Agreement is 22 March 2028.

COMMISSIONER

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Annexure A – Undertakings

CaseChat Overview and Summary

Pring Rural Employment Pty Ltd applied to the Fair Work Commission for approval of the Pring Rural Employment Pty Ltd Enterprise Agreement 2023. The application arose from negotiations between the company and its employees, represented by the Rural Workers Union. The agreement sought to set out the terms and conditions of employment for workers in the rural sector, including wages, hours of work, leave entitlements, and dispute resolution mechanisms.

The legal issues before the Commission included whether the agreement complied with the requirements of the Fair Work Act 2009, including the ‘better off overall test’. This test requires that the proposed agreement must provide employees with a minimum of the national minimum wage and entitlements, and be at least as favourable as the applicable award or registered agreement. The Commission also had to consider whether the agreement was made in good faith and whether it complied with the ‘public interest test’, which requires that the agreement does not have an unreasonable detrimental effect on the broader community.

The Commission found that the agreement met the better off overall test and was made in good faith. The Commission noted that the agreement provided for a pay increase above the national minimum wage and included provisions for additional leave entitlements and improved dispute resolution mechanisms. The Commission also found that the agreement did not have an unreasonable detrimental effect on the broader community, and therefore met the public interest test. The Commission approved the agreement, subject to certain minor amendments.

The final orders of the Commission were that the Pring Rural Employment Pty Ltd Enterprise Agreement 2023 be approved, subject to the amendments made by the Commission. The amended agreement was to be registered with the Fair Work Commission and would apply to all employees of Pring Rural Employment Pty Ltd covered by the agreement. The parties were directed to provide a copy of the amended agreement to the Fair Work Commission within 28 days of the decision.

Pring Rural Employment Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established