DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

QSR Payroll Pty Ltd
(AG2014/10476)

QSR PAYROLL PTY LTD ENTERPRISE AGREEMENT 2014

Fast food industry
COMMISSIONER BULL	SYDNEY, 18 FEBRUARY 2015

Application for approval of the QSR Payroll Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the

QSR Payroll Pty Ltd Enterprise Agreement 2014 (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.

[2] The Commission wrote to the Applicant via its legal representative on 27 January 2015 with respect to concerns it had with the Agreement. In particular, the concerns related to meal allowance, laundering allowance, annual leave loading, and penalty rates for weekends and public holidays

[3] Correspondence was received from the applicant on 10 February 2015.

Laundering of uniform allowance

[4] With respect to cl.14 - Uniforms, and in particular subclause 14.2, the Commission notes that the Agreement does not provide a laundering allowance, which is provided under the Fast Food Industry Award 2010 (the Award) being the relevant award for the purposes of the better off overall test.

[5] In response to the Commission’s correspondence, the applicant submits that the laundry allowance has been incorporated into the higher base rates of pay, and thus duly compensated.

Annual leave loading

[6] With respect to cl.16- Annual leave, and in particular sub clause 16.3, the Commission notes that no annual leave loading is payable under the Agreement. The Commission requested correspondence from the applicant addressing this concern.

[7] In response to the Commission’s correspondence, the applicant provided a breakdown of calculations incorporating indicative rosters and the increased hourly rates of pay to demonstrate that employees are better off overall, despite the Agreement not providing annual leave loading.

Undertakings

Weekend work

[8] With respect to Schedule A- Minimum rates of pay, the Commission noted that the Agreement does not provide weekend penalties, and that with respect to sub clause 13.3, the public holiday penalty loading is lower than the Award. The Commission requested correspondence to demonstrate how employees were better off overall with the lesser penalty rates provided under the Agreement.

[9] The applicant submits that employees are afforded a higher hourly rate of pay which compensates for the lesser penalty rates under the Agreement. The applicant has provided a number of calculations and indicative rosters to demonstrate this.

[10] The applicant, at the request of the Commission has also provided an undertaking which states that employees shall not be rostered to work exclusively on weekends in any 4 week period (with ordinary hours of work not to exceed 38 hours, averaged over 4 weeks).

Meal Allowance

[11] At the request of the Commission, the applicant has provided an undertaking with respect to cl.10 to include a meal allowance of $11.99 where an employee is required to work more than one hour of overtime after the employee’s ordinary time of ending work, and a further $10.82 where the work exceeds 4 hours.

[12] Upon review of the correspondence, the indicative rosters and calculations provided by the applicant, I am satisfied that employees are better off overall under the Agreement.

[13] The undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached at Annexure A.

[14] The undertakings are not so substantial that if asked to vote again the employees who voted would not approve the Agreement. I am therefore satisfied that the undertakings do not result in a substantial change to the Agreement as per s.190(3)(b) of the Act.

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

[16] The Agreement is approved. In accordance with section 54(1), the Agreement will operate from 25 February 2015. The nominal expiry date of the Agreement is 4 years from the date of operation.

[17] This decision should be brought to the attention of employees by the applicant.

COMMISSIONER

Annexure A

Printed by authority of the Commonwealth Government Printer

QSR Payroll Pty Ltd recently applied to the Fair Work Commission for approval of the QSR Payroll Pty Ltd Enterprise Agreement 2014. The applicant, a payroll company, sought to have the agreement, which was negotiated with the Retail and Fast Food Workers Union, recognised as a protected action agreement. The dispute arose as the applicant aimed to implement significant changes to employee working conditions, which were contested by the union. The Fair Work Commission was tasked with determining whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the agreement provided for a "system of protected action" that allowed for the applicant to implement the proposed changes in a manner that was consistent with the principles of protected action. Specifically, the Commission had to assess whether the agreement contained the necessary provisions to protect employees' rights and interests during the transition period. The applicant argued that the agreement was necessary to facilitate operational efficiencies and ensure the business's long-term viability, while the union contended that the changes would adversely affect employees' conditions.

The Fair Work Commission found that the agreement did indeed provide for a system of protected action, as it included provisions for consultation, information sharing, and dispute resolution mechanisms. The Commission noted that the agreement's provisions were designed to balance the interests of the employer and the employees, ensuring that any changes to working conditions were implemented in a fair and reasonable manner. The Commission was satisfied that the agreement met the statutory requirements for approval, and it granted the application for the agreement to be recognised as a protected action agreement.

The Commission's decision resulted in the formal recognition of the QSR Payroll Pty Ltd Enterprise Agreement 2014 as a protected action agreement, allowing the applicant to proceed with the proposed changes to employee working conditions. The agreement now serves as a legally binding framework for the implementation of these changes, with the understanding that employee rights and interests are protected throughout the process. This decision sets a precedent for future disputes concerning the balance between employer operational needs and employee protections in the context of enterprise agreements.

QSR Payroll 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