Shop, Distributive and Allied Employees' Association v Target Australia Pty Ltd

The Shop, Distributive and Allied Employees' Association (SDA) sought an interpretation of the Target Australia Pty Ltd Enterprise Agreement 2011 (the Agreement) concerning the calculation of annual leave entitlements for part-time and full-time employees. The case was heard in the Federal Court of Australia. The primary dispute centred on the interpretation of the term 'ordinary time earnings' as used in the Agreement, specifically whether it included penalties and loadings prescribed for rostered shifts, and if other allowances should be taken into account.

The court was required to determine the meaning of 'ordinary time earnings' within the context of calculating annual leave entitlements. This involved interpreting the term in light of the Agreement and relevant precedent, and applying the principles of construction for industrial agreements. The court also had to consider whether any other allowances should be factored into the calculation of these entitlements.

The court found that the term 'ordinary time earnings' should be interpreted broadly to include penalties and loadings prescribed for rostered shifts, as these form part of the employees' regular remuneration. The court reasoned that excluding these components would undermine the purpose of the Agreement by not fully accounting for the employees' earnings. Furthermore, the court held that other allowances, as specified in the Agreement, should be considered when calculating annual leave entitlements. This interpretation was based on the need to ensure fairness and clarity in the application of the Agreement.

The orders of the court directed the SDA to provide a minute of proposed orders for declaratory relief by a specified date, with the respondent to either agree with these or provide its own proposed orders. The court would then finalise the orders on the papers or, if necessary, at a case management hearing.