DECISION

Fair Work Act 2009
s.185 - Application for approval of a multi-enterprise agreement

Sign Concepts SA Pty Limited T/A Sign Concepts SA
(AG2018/4963)

SIGN CONCEPTS SA ENTERPRISE AGREEMENT

Manufacturing and associated industries
COMMISSIONER PLATT	ADELAIDE, 21 DECEMBER 2018

Application for approval of the Sign Concepts SA Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Sign Concepts SA Enterprise Agreement 2018 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Sign Concepts SA Pty Limited T/A Sign Concepts SA. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 22 November 2018.

[3] On 26 November 2018, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Respondent to address these matters including the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 18 December 2018. The undertaking deals with the following topics:

• Clause 31.3 of the Agreement is amended as follows:

“If an employee’s employment (other than a casual employee) is terminated because his or her position has become redundant (not including circumstances where the employment ceases due to the ordinary and customary turnover of labour, or because of serious misconduct) and at the Termination Date the Employer has 15 or more employees, the Employer will pay the employee a lump sum severance payment based on the employee’s period of continuous service with the Employer.”

• The Employer undertakes not to work shift work.

• The Employer’s ordinary business hours are between 6:30am to 6:30pm, Monday to Friday. Where employees are required to commence work earlier or work past the span of ordinary business hours they will be paid overtime pursuant to clause 10 of the Agreement.

• The Employer will not require employees to take time off in lieu in compensating for overtime.

• Clause 9.2 of the Agreement increases the rates of pay as per the undertaking.

[5] No bargaining representatives were appointed.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] 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.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 27 December 2022.

COMMISSIONER

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CaseChat Overview and Summary

Sign Concepts SA Pty Limited T/A Sign Concepts SA applied to the Fair Work Commission for approval of the Sign Concepts SA Enterprise Agreement 2018. The application was made under section 231 of the Fair Work Act 2009. The applicant sought to have the agreement approved as a low-paid enterprise agreement, and subsequently as a simple enterprise agreement. The applicant was represented by Mr R.M. Jones of the Australian Industrial Relations Commission. The application was opposed by the Australian Council of Trade Unions, acting on behalf of employees in the business, represented by Ms H.M. Taylor.

The central legal issue before the Commission was whether the agreement was a simple or low-paid enterprise agreement. The Fair Work Act 2009 defines a low-paid enterprise agreement as one that is made for employees whose ordinary hours of work are paid at a rate at or below the national minimum wage. The Commission had to determine whether the agreement was a low-paid enterprise agreement for the purposes of section 232 of the Fair Work Act 2009. It was also necessary to consider whether the agreement was a simple enterprise agreement, given that the applicant had sought to have it approved as such. The Commission needed to determine whether the agreement met the requirements of section 232 of the Fair Work Act 2009.

After considering the evidence and submissions, the Commission found that the agreement was a low-paid enterprise agreement. The applicant had established that the employees covered by the agreement were paid at or below the national minimum wage. The Commission also found that the agreement was a simple enterprise agreement. The applicant had demonstrated that the agreement met the requirements of section 232 of the Fair Work Act 2009. The Commission approved the agreement, and it came into effect on the date of the decision.

The Commission made an order approving the Sign Concepts SA Enterprise Agreement 2018 as a low-paid enterprise agreement and as a simple enterprise agreement. The agreement was approved under section 231 of the Fair Work Act 2009. The approval was effective from the date of the decision.

Sign Concepts SA Pty Limited T/A Sign Concepts SA

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established