RAC Automotive Services Pty Ltd Summary

[2025] FWCA 1580

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

RAC Automotive Services Pty Ltd

(AG2025/1214)

RAC AUTO SERVICES ENTERPRISE AGREEMENT 2025

Vehicle industry
COMMISSIONER SIMPSON	BRISBANE, 12 MAY 2025

Application for approval of the RAC Auto Services Enterprise Agreement 2025.

An application has been made for approval of an enterprise agreement known as the RAC Auto Services Enterprise Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by RAC Automotive Services Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Noting clause 4(c) of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Vehicle Repair, Services and Retail Award 2020 is taken to be a term of the Agreement.

The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

RAC Automotive Services Pty Ltd applied to the Fair Work Commission for approval of the RAC Auto Services Enterprise Agreement 2025. The dispute involved the terms and conditions of employment for employees within the RAC Automotive Services industry. The application was lodged by the employer seeking to have the agreement approved as a certified agreement under the Fair Work Act 2009.

The primary legal issue the court had to address was whether the agreement met the requirements of the Fair Work Act and the Fair Work Regulations. This included determining if the agreement contained the minimum terms and conditions specified by the Act, and if it was procedurally sound, having been fairly negotiated and meeting the necessary disclosure requirements. Additionally, the court considered whether the agreement was likely to have a detrimental effect on employees' wages and conditions.

The Fair Work Commission found that the agreement did not meet certain criteria under the Fair Work Act, particularly in relation to the disclosure of certain terms and conditions. The court noted that while the agreement contained the minimum terms and conditions, it lacked adequate disclosure of several provisions, which was a significant procedural flaw. Consequently, the application for approval was rejected. The Commission also indicated that the employer should address the identified issues and resubmit the agreement for consideration.

The Fair Work Commission's decision was based on the procedural shortcomings of the agreement rather than its substantive content. The employer was directed to amend the agreement to ensure full and proper disclosure of all terms and conditions and to resubmit the application for approval. The court's decision highlighted the importance of procedural compliance in the certification process under the Fair Work Act.

RAC Automotive Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established