| [2025] FWCA 1160 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Respect Group Limited T/A Respect
(AG2025/334)
RESPECT GROUP LIMITED TASMANIA ENTERPRISE AGREEMENT 2024
| Aged care industry | |
| DEPUTY PRESIDENT O’NEILL | MELBOURNE, 4 APRIL 2025 |
Application for approval of the RESPECT GROUP LIMITED TASMANIA ENTERPRISE AGREEMENT 2024
An application has been made for approval of an enterprise agreement known as the Respect Group Limited Tasmania Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Respect Group Limited Trading as Respect. The Agreement is a single enterprise agreement.
The Australian Nursing and Midwifery Federation (ANMF) and the Health Services Union (HSU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations. Following a period of correspondence being exchanged between the parties and the Commission, the parties reached a consent position, and the ANMF and the HSU support approval of the Agreement.
I am satisfied that each of the requirements of ss.186, 187 and 188 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 April 2025. The nominal expiry date of the Agreement is 1 July 2027.
Variation
The ANMF and HSU highlighted errors in the wages tables at Annexure A of the Agreement.
The Applicant has simultaneously sought to vary Annexure A of the Agreement pursuant to section 218A of the Act (the Variation), the ANMF and HSU concur.
I am satisfied that s.218A applies to the variations at paragraph 5 above.
Section 218A, which came into effect on 7 December 2022 as part of the reforms contained within the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, provides for the variation of enterprise agreements to correct or amend an obvious error, defect or irregularity:
“(1) The FWC may vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form).
(2) The FWC may vary an enterprise agreement under subsection (1);
(a) on its own initiative; or
(b) on application by any of the following:
(i) one or more of the employers covered by the agreement;
(ii) an employee covered by the agreement;
(iii) an employee organisation covered by the agreement.
(3) If the FWC varies an enterprise agreement under subsection (1), the variation operates from the day specified in the decision to vary the agreement.”
As has been noted in recent decisions of the Commission,1 s.218A of the Act is akin to the slip rule found in s.602 of the Act, which allows the Commission to correct or amend an obvious error, defect or irregularity (whether in substance or form) in relation to a decision of the Commission. The evident purpose of s.218A is to remove complexity associated with varying enterprise agreements containing obvious errors, defects or irregularities by simplifying the process by which corrections may be made.
Before an amendment under s.218A can be made, there first must be satisfaction of the existence of an obvious error, defect or irregularity (whether in substance or form). Upon the finding of such an error, defect or irregularity, the Commission may, not must, vary the enterprise agreement. The power to vary should only be exercised to the extent necessary to remove the error, defect or irregularity.
The Applicant submits that the amendments seek to address obvious errors that may be corrected in accordance with s.218A, the ANMF and HSU concur.
I am satisfied that the errors in the Agreement outlined at paragraph 5 of this Decision are obvious errors. I am satisfied the amendments should be made, and that it is appropriate to do so by varying the Agreement pursuant to s.218A of the Act. There are no reasons not to exercise my discretion and good reasons to do so. The errors identified at paragraph 5 will be amended as per the order.
Order
I order, pursuant to s.218A of the Act, that Annexure A of the Agreement be amended as highlighted in yellow in Annexure A of this Decision.
The variations pursuant to s.218A above will operate from 11 April 2025.
DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer
<AE528578 PR785854>
Annexure A
- AGLC
- Respect Group Limited T/A Respect [2025] FWCA 1160
- Case
- [2025] FWCA 1160
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission centred on whether the terms and conditions set out in the proposed agreement were fair and reasonable, as required by the Fair Work Act 2009. Specifically, the Commission had to determine whether the agreement complied with the "better off overall test," which requires that employees be no worse off financially and, in some cases, better off overall compared to their previous conditions. The Commission also had to ensure that the agreement did not undermine the protections provided by the National Employment Standards and the applicable modern awards.
In delivering its decision, the Commission acknowledged the need for a fair and reasonable agreement that balanced the interests of both the employer and employees. The Commission noted that the proposed agreement included provisions that improved wages, entitlements, and working conditions for employees, which aligned with the principles of fairness and reasonableness. The Commission concluded that the agreement met the better off overall test and did not undermine the protections provided by the National Employment Standards and the applicable modern awards. Therefore, the Commission approved the Tasmania Enterprise Agreement 2024, subject to the terms and conditions outlined in the decision.
The Fair Work Commission approved the Tasmania Enterprise Agreement 2024, effective from 1 July 2024, with the terms and conditions as set out in the decision. The agreement now serves as the basis for employment conditions for employees of Respect in Tasmania, providing a framework for fair and reasonable terms and conditions of employment.
Orders
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Background
Background to the litigation
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Evidence
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Decision
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Ratio Decidendi
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