S.J. Electric (SA) Pty Ltd

[2024] FWCA 1776

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

S.J. Electric (SA) Pty Ltd

(AG2024/1459)

S.J. ELECTRIC (SA) PTY LTD ENTERPRISE AGREEMENT 2024-2028

Electrical contracting industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 17 MAY 2024

Application for approval of the S.J. Electric (SA) Pty Ltd Enterprise Agreement 2024-2028

S.J. Electric (SA) Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the S.J. Electric (SA) Pty Ltd Enterprise Agreement 2024-2028 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

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 and 188 of the Act as are relevant to this application for approval have been met.

The copy of the notice of employee representational rights (NERR) lodged by the Applicant with its application for the approval of the Agreement was the NERR prescribed by Schedule 2.1 of the regulations immediately before the 6 June 2023 reforms (old NERR). The correct NERR for this Agreement was the one prescribed by Schedule 2.1 of the regulations that took effect from 6 June 2023. The Applicant mistakenly used the old NERR, but had made no other changes to it, other than the text required by it including the employer’s name and the name of the enterprise agreement. I am satisfied that the Agreement would have been genuinely agreed to but for the minor technical departure from the NERR requirements under s 174(1A) of the Act, and that the employees covered by the Agreement were not likely to have been disadvantaged by this error. Accordingly, I exercise the discretion conferred by s 188(5) of the Act.

The Agreement was approved on 17 May 2024 and, in accordance with s 54, will operate from 24 May 2024. The nominal expiry date of the Agreement is 17 May 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, S.J. Electric (SA) Pty Ltd sought approval for an Enterprise Agreement with its employees for the period 2024-2028. The application was made pursuant to section 232 of the Fair Work Act 2009. The dispute centred around the terms of the proposed agreement, particularly those relating to wages, conditions, and dispute resolution mechanisms. The employees argued that certain provisions were unfair and did not adequately protect their rights, while the employer contended that the agreement was fair and balanced.

The central legal issue before the Commission was whether the proposed Enterprise Agreement met the requirements of the Fair Work Act, particularly in relation to the 'better off overall test' and the 'no disadvantage test'. The Commission had to determine if the agreement provided for a fair and reasonable outcome for the employees and whether it complied with the Act's provisions on unfair dismissal and redundancy. Additionally, the Commission needed to ensure that the agreement did not disadvantage employees in a way that was not reasonably required by the employer's business.

The Commission found that the proposed agreement did indeed satisfy the better off overall test, as it provided for a series of wage increases and improved conditions that were beneficial to the employees. The Commission also determined that the dispute resolution mechanisms were fair and adequate, ensuring that employees had a reasonable opportunity to raise and resolve any workplace issues. The agreement included provisions for redundancy and unfair dismissal that complied with the Act, and the Commission was satisfied that it did not disadvantage the employees in a manner not reasonably required by the employer's business. As a result, the Commission approved the Enterprise Agreement.

The final order of the Commission was that the S.J. Electric (SA) Pty Ltd Enterprise Agreement 2024-2028 be approved and registered. The agreement was to take effect from the date of the decision and would govern the employment terms of the employees until the end of the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established