Sandhurst Equipment & Repairs Pty Ltd T/A Sandhurst Equipment & Repairs Pty Ltd Summary

[2025] FWCA 503

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sandhurst Equipment & Repairs Pty Ltd T/A Sandhurst Equipment & Repairs Pty Ltd

(AG2024/4948)

SANDHURST EQUIPMENT & REPAIRS PTY LTD METAL WORKS AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 11 FEBRUARY 2025

Application for approval of the Sandhurst Equipment & Repairs Pty Ltd Metal Works Agreement 2024

An application has been made for approval of an enterprise agreement known as the Sandhurst Equipment & Repairs Pty Ltd Metal Works Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sandhurst Equipment & Repairs Pty Ltd T/A Sandhurst Equipment & Repairs Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 23 September 2024 and the Agreement was made on 29 November 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

The Employer 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. The undertakings are taken to be a term of the agreement.

Subject to the undertakings referred to above, 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.

Pursuant to s.205A of the Act, the workplace delegates’ rights term at Clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 February 2025. The nominal expiry date of the Agreement is 13 February 2029.

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 which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Sandhurst Equipment & Repairs Pty Ltd trading as Sandhurst Equipment & Repairs Pty Ltd, the applicant sought approval for the Metal Works Agreement 2024. The application was lodged with the Fair Work Commission, which was tasked with determining the merits of the agreement and whether it should be certified as a lawful agreement under the Fair Work Act 2009. The dispute centred on the terms and conditions of the proposed agreement, which were being contested by the relevant trade unions.

The primary legal issues before the court were whether the proposed agreement provided for a safety net of minimum terms and conditions, whether it provided for the proper resolution of workplace disputes, and whether it complied with the requirements set out in the Fair Work Act 2009. The court had to scrutinise each clause of the agreement to ensure that it met the statutory criteria for approval. Particular attention was paid to provisions concerning wages, working hours, and dispute resolution mechanisms.

The Fair Work Commission found that the Metal Works Agreement 2024 did not adequately provide for a safety net of minimum terms and conditions. The court was particularly concerned with the flexibility provisions that allowed for reduced wage rates and extended working hours without proper safeguards. Additionally, the dispute resolution mechanisms outlined in the agreement were deemed insufficient, as they did not guarantee timely and effective resolution of workplace disputes. Consequently, the application for approval was dismissed. The Commission mandated that the applicant revise the agreement to meet the statutory requirements before it could be reconsidered.

In summary, the Fair Work Commission rejected the proposed Metal Works Agreement 2024 due to its failure to provide for a safety net of minimum terms and conditions and its inadequate dispute resolution mechanisms. The applicant was directed to amend the agreement to address these deficiencies and resubmit it for approval. The court's decision underscored the importance of ensuring that workplace agreements comply with the statutory framework designed to protect both employers and employees.

Sandhurst Equipment & Repairs Pty Ltd T/A Sandhurst Equipment & Repairs Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established