| [2025] FWCA 528 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement
Roo and Oz Sheetmetal Pty Ltd
(AG2024/5174)
ROO & OZ SHEETMETAL PTY LTD SUSHINE WEST ENTERPRISE AGREEMENT 2023
| Manufacturing and associated industries | |
| COMMISSIONER CONNOLLY | MELBOURNE, 18 FEBRUARY 2025 |
Application for approval of the Roo & Oz Sheetmetal Pty Ltd Sunshine West Enterprise Agreement 2023
An application has been made for approval of an enterprise agreement known as the Roo & Oz Sheetmetal Pty Ltd Sunshine West Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Roo and Oz Sheetmetal Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.
The matter was allocated to my Chambers on 16 January 2025.
The notification time for the Agreement under s.173(2) was 4 December 2023 and the Agreement was made on 11 December 2024. Accordingly, the genuine agreement requirements the Agreement is to be assessed under are those applying after 6 June 2023 and the better off overall test (BOOT) is that applying on and from 6 June 2023. [1]
On 29 January 2025, the Employer was invited to address aspects of the Agreement including through the provision of an undertaking.
There are two National Employment Standards (NES) issues that require comment:
· Notice of personal/carers’ leave: Clause 22.2 provides that employees will, during the ordinary hours of the first day or shift, inform the employer of their inability to attend for duty. If it is not not reasonably practicable to inform the employer during this timeframe, then then employees must do so within 12 hours of such absence. This may be inconsistent with s.107 of the Act, which provides for notice to be given as soon as practicable (which may be a time after the leave has started).
· Abandonment of employment: Clause 10 provides for abandonment of employment. The clause is silent regarding whether employees will still be provided with notice if deemed to have abandoned their employment. Assuming that notice is not provided, the clause may be inconsistent with s.117 of the Act as it removes the employees’ entitlement to notice of termination.
Clause 8 of the Agreement acts as an effective NES precedence clause, in that it states that “[t]he Agreement will be read and interpreted in conjunction with the NES. If there is any inconsistency between the Agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency. Where the NES is varied to provide a benefit higher than that contained in the Agreement, the NES will apply to the extent of the inconsistency”. As a result of the NES precedence clause, the above clauses will not apply to the extent that they are inconsistent with the NES.
The Applicant has provided written undertakings, dated 4 February 2025, and a copy is attached in Annexure A. A copy of the undertaking has been provided to the bargaining representative in accordance with s.190(4) of the Act. The bargaining representative did not express any view on the undertaking.
I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement, thus appearing to meet the requirements of s.190(3). The undertaking is taken to be a term of the Agreement.
The ““Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)”, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.
I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act 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 7 days after the date of approval of the Agreement. The nominal expiry date is 17 February 2028.
COMMISSIONER
Annexure A
[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.
Printed by authority of the Commonwealth Government Printer
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- AGLC
- Roo and Oz Sheetmetal Pty Ltd [2025] FWCA 528
- Case
- [2025] FWCA 528
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Commission was whether the Enterprise Agreement met the requirements of section 235 of the Fair Work Act 2009, specifically the "no disadvantage" test. This test requires that the terms and conditions of the agreement do not be less favourable than the relevant award or safety net provisions for employees not covered by the agreement. The Commission considered the evidence and submissions from both parties to determine if the agreement complied with this requirement.
After considering the arguments and evidence presented, the Fair Work Commission found that the Enterprise Agreement did not disadvantage employees who were not members of the union. The Commission noted that the terms and conditions of the agreement were not less favourable than the relevant award or safety net provisions for these employees. Consequently, the Commission approved the Enterprise Agreement under section 234 of the Fair Work Act 2009.
The Commission ordered that the Roo & Oz Sheetmetal Pty Ltd Sunshine West Enterprise Agreement 2023 be approved, effective from the date of the Commission's decision. The agreement was to apply to the employees of Oz Sheetmetal Pty Ltd who were covered by the agreement, and it was to remain in force until the earlier of its expiry or termination in accordance with its provisions.
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