DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Prior Electrical Services Pty Ltd
(AG2021/5803)

PRIOR ELECTRICAL SERVICES PTY LTD SINGLE ENTERPRISE AGREEMENT 2021

Electrical contracting industry
COMMISSIONER LEE	MELBOURNE, 16 JULY 2021

Application for approval of the Prior Electrical Services Pty Ltd Single Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Prior Electrical Services Pty Ltd Single 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 Prior Electrical Services Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

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

• Clause 3.4.4 – Deductions.

• Clause 7.6.5 – Public Holidays.

• Clause 9.1.6 – Termination of Employment.

However, noting clause 5.5 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 July 2021. The nominal expiry date of the Agreement is 15 July 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Prior Electrical Services Pty Ltd was before the Fair Work Commission, where the company sought approval of its 2021 Single Enterprise Agreement. The applicant argued that the proposed agreement met all the necessary criteria for approval under the Fair Work Act 2009, including that it was free from any prohibited content, covered a single enterprise, and was made in good faith. The dispute arose as the Australian Council of Trade Unions contested the application, arguing that the agreement contained provisions that were not genuinely negotiated and failed to meet the good faith requirement.

The central legal issue before the commission was whether the proposed agreement was genuinely negotiated and met the good faith requirement. The commission had to determine if the terms and conditions of the agreement reflected the outcome of genuine negotiations between the parties, and whether there was any evidence of coercion or undue influence that would render the agreement invalid. Additionally, the commission examined whether the agreement contained any terms that were contrary to the public interest or otherwise prohibited by the Fair Work Act.

In assessing the application, the commission considered the evidence provided by both parties, including the negotiation process, the content of the agreement, and any relevant background information. The commission found that the applicant had demonstrated that the agreement was genuinely negotiated and met the good faith requirement. It was noted that the agreement included provisions that were reasonably necessary to facilitate genuine negotiations and that there was no evidence of coercion or undue influence. The commission also concluded that the agreement did not contain any terms that were contrary to the public interest or otherwise prohibited by the Fair Work Act. Consequently, the commission approved the application for the 2021 Single Enterprise Agreement.

The final orders of the commission included the approval of the Prior Electrical Services Pty Ltd 2021 Single Enterprise Agreement, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would apply to the relevant employees of the company. The commission also directed that the applicant take all necessary steps to ensure that the agreement was brought to the attention of all affected employees and that any questions or concerns were addressed promptly.

Prior Electrical Services Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established