DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rigforce Pty Ltd T/A Rigforce
(AG2019/835)

RFD ENTERPRISE AGREEMENT 2019

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 5 APRIL 2019

Application for approval of the RFD Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the RFD Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rigforce Pty Ltd T/A Rigforce. The Agreement is a single enterprise agreement.

[2] 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.

[3] I observe that the following provisions is likely to be inconsistent with the National Employment Standards (NES):

• Clause 8.5 (d) – Casual employees.

However, noting clause 5 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 April 2019. The nominal expiry date of the Agreement is 4 April 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Rigforce Pty Ltd T/A Rigforce applied to the Fair Work Commission for approval of the RFD Enterprise Agreement 2019. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union, which argued that the agreement did not meet the requirements of section 233 of the Fair Work Act 2009. The dispute centred on whether the agreement contained sufficient provisions regarding termination and re-engagement of employees, and whether the agreement had been fairly negotiated.

The legal issues before the Commission were whether the agreement contained the necessary provisions to ensure procedural fairness in the termination and re-engagement of employees and whether the agreement had been genuinely negotiated. The Commission found that while the agreement did not explicitly state the procedure for termination and re-engagement, it incorporated by reference the provisions of the relevant industry award, which contained detailed provisions for these matters. The Commission also found that the agreement had been genuinely negotiated, as it was the product of a genuine attempt by the parties to reach an agreement. The Commission approved the agreement, stating that the incorporation by reference of the award provisions was sufficient to meet the requirements of the Act.

The Fair Work Commission approved the RFD Enterprise Agreement 2019, finding that the agreement contained sufficient provisions for the termination and re-engagement of employees through incorporation by reference of the relevant industry award. The Commission also found that the agreement had been genuinely negotiated. The decision highlights the importance of ensuring that enterprise agreements incorporate necessary provisions either directly or by reference, and that the negotiation process is genuine.

Rigforce Pty Ltd T/A Rigforce

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established