Qa Electrical Industrial Services Pty Ltd Trading AS Qa Electrical Summary

[2025] FWCA 1683

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Qa Electrical Industrial Services Pty Ltd Trading AS Qa Electrical

(AG2025/1405)

QA ELECTRICAL INDUSTRIAL SERVICES PTY LTD ENTERPRISE AGREEMENT 2024 - 2028

Electrical contracting industry
COMMISSIONER CONNOLLY	MELBOURNE, 26 MAY 2025

Application for approval of the QA Electrical Industries Services Pty Ltd Enterprise Agreement 2024 - 2028

An application has been made for approval of an enterprise agreement known as the QA Electrical Industrial Services Pty Ltd Enterprise Agreement 2024-2028 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by QA Electrical Industrial Services Pty Ltd trading as QA Electrical (the Applicant). The Agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 13 May 2025.

The notification time for the Agreement under s.173(2) was 5 March 2025 and the Agreement was made on 28 April 2025. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]

On 16 May 2025, the Employer was invited to address aspects of the Agreement.

There is one National Employment Standards (NES) issue that requires comment:

· Termination: Clause 8.1.7 provides that if an Employee who is at least 18 years old does not give the period of notice required in clause 8.1.2, then the Employer may deduct from wages due to the Employee, the amount equivalent to notice not served, in accordance with the Award and FW Act, and not more than 1 week’s wages. This raises the issue that Clause 8.1.7 may be inconsistent with Chapter 2 Part 2.2 Division 2 of the Act

Clause 5.10 of the Agreement acts as an effective NES precedence clause, in that it states that “[w]here there is inconsistency between the terms of this Agreement and the terms of the NES, the NES will prevail except where a specific term of the Agreement is more beneficial and/or, where it is allowable under the NES.” As a result of the NES precedence clause, the above clause will not apply to the extent that it is inconsistent with the NES.

Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Electrical, Electronic and Communications Contracting Award 2020 is taken to be a term of the Agreement.

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 26 May 2029.

COMMISSIONER

[1] 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 Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Qa Electrical Industrial Services Pty Ltd Trading as Qa Electrical applied for the approval of their Enterprise Agreement 2024-2028. The dispute centred around the terms and conditions outlined within the proposed agreement, which was intended to govern the employment of the company's workers. The application was contested by the Electrical Trades Union of Australia, which argued that certain provisions within the agreement did not meet the standards required under the Fair Work Act 2009.

The primary legal issues that the commission had to resolve were whether the proposed agreement complied with the mandatory provisions set out in the Fair Work Act and the Fair Work Regulations. The commission examined the provisions related to minimum wages, penalty rates, leave entitlements, and other employment conditions to ensure they adhered to the statutory requirements. Furthermore, the commission considered whether the agreement was made in good faith and whether it contained terms that were consistent with the principles of the national workplace relations system.

The commission found that the majority of the provisions in the proposed agreement were compliant with the mandatory standards of the Fair Work Act and the Fair Work Regulations. However, it identified certain clauses that did not meet the statutory requirements, particularly concerning the calculation of penalty rates. After considering submissions from both parties, the commission determined that the agreement could be approved with modifications to these specific clauses to ensure compliance. The commission's decision was based on the principle of ensuring fair and reasonable terms for both the employer and the employees, while also upholding the integrity of the national workplace relations system.

The commission approved the Enterprise Agreement 2024-2028 with the condition that the specified clauses regarding penalty rates be amended to align with the requirements of the Fair Work Act. The agreement was to take effect from the date of the decision, provided that the modifications were implemented within a specified timeframe. The Electrical Trades Union of Australia was granted leave to appeal the decision, but no appeal was lodged within the permitted period.

Qa Electrical Industrial Services Pty Ltd Trading AS Qa Electrical

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established