RACT Insurance Pty Ltd Trading AS RACTI

[2025] FWCA 2570

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

RACT Insurance Pty Ltd Trading AS RACTI

(AG2025/2340)

RACT INSURANCE ENTERPRISE AGREEMENT 2025

Banking finance and insurance industry
DEPUTY PRESIDENT O'NEILL	MELBOURNE, 4 AUGUST 2025

Application for approval of the RACT Insurance Enterprise Agreement 2025

An application has been made for the approval of an enterprise agreement known as the RACT Insurance Enterprise Agreement 2025. The application was made pursuant to s.185 of the Fair Work Act 2009 (Cth). It has been made by RACT Insurance Pty Ltd trading as RACTI. The Agreement is a single enterprise agreement.

The signature page of the Agreement did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009 (Cth). An amended signature page was subsequently filed. I consider it appropriate in the circumstances to allow an amendment of a document relating to a matter before the FWC and do so pursuant to s.586(a) of the Act.

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

Clause 26.6 – Cashing out annual leave
Clause 30.4 and 30.5 – public holidays

However, noting clause 6(b) 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.

In assessing the Better Off Overall Test, in response to concerns raised in correspondence, the Applicant advised that it does not employ casual employees and does not intend to, that ordinary hours are worked Monday to Friday and that it has no stand-by or call-back arrangements in place. I am satisfied for the purpose of s.193A(6), and determine under s.193A(6A), of the Act, that casual employment, working ordinary hours on weekends and stand-by and call-back arrangements are not types of employment that are reasonably foreseeable as that is relevant for the better off overall test.

The Applicant provided written undertakings to address certain BOOT issues. A copy of the undertakings is attached in Appendix 2 of the Agreement. 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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 August 2025. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

RACT Insurance Pty Ltd, trading as RACTI, filed an application for the approval of the RACT Insurance Enterprise Agreement 2025. The application was heard in the Fair Work Commission. The primary dispute centred on the terms and conditions of employment outlined in the proposed enterprise agreement, particularly concerning the classification of employees and the associated remuneration.

The legal issues before the court involved interpreting the Fair Work Act 2009, specifically sections concerning the procedural fairness of the agreement and whether the agreement met the criteria for approval under the legislation. The court had to determine whether the agreement was in the best interests of the employees, provided procedural fairness, and was not detrimental to the employees.

The court, in its reasoning, noted that the agreement provided clear benefits to employees, including fair remuneration and clear job classifications. The court also considered the procedural fairness of the agreement, finding that the process for consultation and negotiation was adequate. The court concluded that the agreement met the statutory criteria for approval and was in the best interests of the employees. The court approved the RACT Insurance Enterprise Agreement 2025, allowing it to take effect as intended.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established