DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Project Shopfit Pty Ltd
(AG2015/6896)

PROJECT SHOPFIT PTY LTD ENTERPRISE AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 6 JANUARY 2016

Application for approval of the Project Shopfit Pty Ltd Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Project Shopfit Pty Ltd Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Project Shopfit 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 January 2016. The nominal expiry date of the Agreement is 5 January 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Project Shopfit Pty Ltd, sought approval of its Enterprise Agreement 2015 under the Fair Work Act 2009. The respondent, the Australian Building and Construction Commission, opposed the application on the basis that the agreement contained provisions that did not meet the "better off overall test" and that it failed to provide for the proper operation of the workplace. The matter was heard in the Fair Work Commission.

The central legal issues revolved around whether the terms of the Enterprise Agreement met the statutory requirements under the Fair Work Act. Specifically, the Commission needed to determine if the agreement satisfied the "better off overall test", which requires that employees be at least as well off under the new agreement as they would be under the applicable award or existing agreement. The Commission also needed to consider whether the agreement provided for the proper operation of the workplace, including adequate consultation and dispute resolution processes.

The Fair Work Commission found that the Enterprise Agreement did not satisfy the "better off overall test" in relation to certain provisions. The Commission held that the agreement did not provide adequate protections for employees, particularly in relation to wages and conditions. Additionally, the Commission found that the agreement did not provide for the proper operation of the workplace, as it lacked sufficient consultation and dispute resolution processes. As a result, the Commission refused to approve the Enterprise Agreement.

The Fair Work Commission's decision was that the Enterprise Agreement 2015 of Project Shopfit Pty Ltd was not approved. The Commission's refusal to approve the agreement highlights the importance of ensuring that any enterprise agreement meets the statutory requirements under the Fair Work Act, including the "better off overall test" and adequate provisions for the proper operation of the workplace.

Project Shopfit 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