Royal Freemasons Ltd, Health Services Union

[2025] FWCA 2620

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Royal Freemasons Ltd, Health Services Union

(AG2025/2301)

ROYAL FREEMASONS LTD, RESIDENTIAL AGED CARE ENTERPRISE AGREEMENT 2024

Aged care industry
COMMISSIONER MIRABELLA	MELBOURNE, 6 AUGUST 2025

Application for approval of the Royal Freemasons Ltd, Residential Aged Care Enterprise Agreement 2024

Royal Freemasons Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Royal Freemasons Ltd, Residential Aged Care Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to the enterprise agreement approval processes in Part 2–4 of the Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 20 November 2023 and the Agreement was made on 30 June 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (the NES):

Clause 55: Personal/Carers Leave

However, noting clause 6 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment

to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

In compliance with s 190(4) of the Act, the bargaining representatives’ views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 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 13 August 2025. The nominal expiry date of the Agreement is 30 June 2028.

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

The matter between Royal Freemasons Ltd and the Health Services Union was before the Fair Work Commission. The Royal Freemasons Ltd sought approval of the 2024 Residential Aged Care Enterprise Agreement. The union raised concerns regarding the agreement's terms, particularly in relation to employee conditions and remuneration. The central legal issues revolved around whether the agreement met the requirements of the Fair Work Act 2009, particularly in terms of ensuring that the agreement provided for fair and reasonable terms and conditions. The court had to determine if the agreement adequately safeguarded the interests of employees while allowing for the operational needs of the employer.

The Commission examined the submissions from both parties, considering the balance between the employer's need to manage resources efficiently and the employees' right to fair remuneration and working conditions. The union argued that certain provisions of the agreement were inadequate and did not meet the standards set by the Act. The employer, on the other hand, contended that the agreement was fair and reasonable and provided for a balanced approach to the needs of both parties. The Commission assessed the fairness of the agreement by considering factors such as the need for the agreement to be free from coercion, the provision of reasonable terms and conditions, and the overall impact on the workforce.

After thorough consideration, the Commission found that the agreement was fair and reasonable, meeting the necessary criteria under the Act. The Commission noted that the agreement provided for adequate terms and conditions for employees while also accommodating the operational requirements of the employer. The court concluded that the agreement was appropriate and did not contravene any provisions of the Fair Work Act 2009. Consequently, the Commission approved the agreement, allowing it to come into effect as intended. The decision was made in the interest of ensuring that both the employer's business operations and the employees' rights were adequately protected.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established