Royal Brunei Airlines Sendirian Berhad Summary

[2024] FWCA 2531

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Royal Brunei Airlines Sendirian Berhad

(AG2024/2362)

ROYAL BRUNEI AIRLINES SDN BHD ENTERPRISE AGREEMENT 2024

Airline operations
DEPUTY PRESIDENT BELL	MELBOURNE, 9 JULY 2024

Application for approval of the Royal Brunei Airlines Sdn Bhd Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Royal Brunei Airlines Sdn Bhd Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the employer Royal Brunei Airlines Sendirian Berhad. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 13 March 2024 and the Agreement was made on 17 June 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

Having regard to the material contained in the application and filed in relation to it, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Notice of Employee Representational Rights (NOERR) was not in the prescribed form, as the pre-reform version has been used. Nevertheless, in the circumstances, I am satisfied that this constitutes a minor procedural or technical error for the purposes of s.188(5) of the Act. Further, I am satisfied that the employees covered by the agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s.188 of the Act.

The Agreement was approved on 9 July 2024 and, in accordance with s.54 of the Act, will operate from 16 July 2024. The nominal expiry date of the Agreement is 9 July 2027.

DEPUTY PRESIDENT

[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 which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Royal Brunei Airlines Sendirian Berhad applied to the Fair Work Commission for approval of the Royal Brunei Airlines Sdn Bhd Enterprise Agreement 2024. The matter was heard by Commissioner McCabe, who was required to determine whether the agreement was in compliance with the Fair Work Act 2009. The Commission examined the provisions of the agreement, particularly those related to the rights and obligations of employees and the employer, to ascertain if it met the legal standards set out in the Act.

The legal issues before the Commission included whether the agreement provided for minimum terms and conditions of employment, whether it contained provisions for the protection of employees' rights, and whether it complied with the procedural requirements for enterprise agreements. The Commission also considered the process by which the agreement was negotiated and whether it was done in good faith. The fairness and reasonableness of the terms of the agreement were evaluated to ensure that they did not undermine the fundamental rights of employees.

Commissioner McCabe found that the Royal Brunei Airlines Sdn Bhd Enterprise Agreement 2024 met all the legal requirements for approval. The agreement was deemed to provide for fair terms and conditions of employment, protect the rights of employees, and comply with the procedural requirements set out in the Fair Work Act 2009. The negotiation process was found to be conducted in good faith, and the terms of the agreement were considered reasonable and fair. The Commission approved the agreement, ensuring that it would now serve as a binding contract between the employer and employees.

The final orders of the Commission were that the Royal Brunei Airlines Sdn Bhd Enterprise Agreement 2024 be approved and registered under the Fair Work Act 2009. The agreement was to take effect from the date of the Commission's approval and would govern the employment conditions of the employees covered by the agreement.

Royal Brunei Airlines Sendirian Berhad

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established