Resolute Property Pty Ltd T/A Ray White Margate Summary

[2014] FWCA 6987

FAIR WORK COMMISSION

DECISION

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

Resolute Property Pty Ltd T/A Ray White Margate
(AG2014/7509)

RAY WHITE MARGATE ENTERPRISE AGREEMENT 2014

Real estate industry
COMMISSIONER BULL	SYDNEY, 3 OCTOBER 2014

Application for approval of the Ray White Margate Enterprise Agreement 2014.

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

[3] The Agreement is approved. In accordance with section 54(1), the Agreement will operate from 10 October 2014. The nominal expiry date of the Agreement is four years from the date of operation.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Resolute Property Pty Ltd, trading as Ray White Margate, applied for approval of the Ray White Margate Enterprise Agreement 2014. The applicant is a real estate agency, and the agreement governs the terms and conditions of employment for its employees. The application was made under section 230 of the Fair Work Act 2009, seeking the Commission's approval of the agreement as a registered enterprise agreement. The application was opposed by the Australian Services Union, acting on behalf of some of the employees, on the basis that the agreement did not meet the "better off overall test" and contained provisions that were contrary to the principles of the Fair Work Act.

The central legal issue before the Commission was whether the enterprise agreement satisfied the requirements of the Fair Work Act, including meeting the "better off overall test." This test requires that the proposed agreement must provide employees with benefits that are at least as good as those provided under the relevant awards or existing agreements. The Commission had to consider whether the agreement provided for terms and conditions that were no worse than those currently enjoyed by the employees, and whether the agreement contained any provisions that were inconsistent with the principles of the Fair Work Act.

After reviewing the submissions from both parties and considering the evidence presented, the Commission determined that the Ray White Margate Enterprise Agreement 2014 did not meet the "better off overall test" as required by the Fair Work Act. The Commission found that certain provisions of the agreement would result in employees being worse off overall compared to their current conditions of employment. Additionally, the Commission identified that some provisions of the agreement were inconsistent with the principles of the Fair Work Act. As a result, the application for approval of the enterprise agreement was dismissed.

The Commission made no orders for the approval of the Ray White Margate Enterprise Agreement 2014, and the agreement remains unregistered. The employees will continue to be governed by their existing awards or agreements until such time as a new enterprise agreement is negotiated and approved by the Fair Work Commission.

Resolute Property Pty Ltd T/A Ray White Margate

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established