SKS Technologies Pty Ltd

[2025] FWCA 357

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

SKS Technologies Pty Ltd

(AG2024/5022)

SKS TECHNOLOGIES VICTORIA EMPLOYEE AGREEMENT 2025 TO 2029

Electrical contracting industry
COMMISSIONER WILSON	MELBOURNE, 30 JANUARY 2025

Application for approval of the SKS Technologies Victoria Employee Agreement 2025-2029

An application has been made for approval of an enterprise agreement known as the SKS Technologies Victoria Employee Agreement 2025 to 2029 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SKS Technologies Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 20 November 2024 and the Agreement was made on 12 December 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. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

Pursuant to s.205A of the Act, the workplace delegates’ rights term at Clause 26A of the Award 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 6 February 2025. The nominal expiry date of the Agreement is 30 January 2029.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, SKS Technologies Pty Ltd, sought approval of an enterprise agreement, specifically the SKS Technologies Victoria Employee Agreement 2025-2029. The dispute arose from objections to the proposed agreement, which aimed to regulate the terms and conditions of employment for employees within the Victoria region. The primary issues at hand revolved around whether the agreement met the legal standards set forth under the Fair Work Act 2009 and the Fair Work Regulations 2009. The objectors contended that the agreement failed to comply with certain statutory provisions, particularly in relation to the treatment of penalty rates and shift loadings for employees.

The legal issues before the commission encompassed the interpretation and application of specific sections of the Fair Work Act and Regulations concerning penalty rates and shift loadings. The applicant argued that the proposed agreement was in line with the legislative framework and provided fair and reasonable terms for both parties. Conversely, the objectors claimed that the agreement did not adequately protect employees' entitlements, particularly in relation to penalty rates for work performed on Saturdays, Sundays, and public holidays, as well as shift loadings for night work. The commission was tasked with determining whether the agreement fulfilled the criteria for approval, including whether it provided for fair and reasonable terms and conditions of employment.

In delivering its decision, the commission carefully examined the provisions of the proposed agreement against the relevant legislative standards. It found that while the agreement contained provisions for penalty rates and shift loadings, they did not conform to the specific requirements set out in the Fair Work Regulations. The commission highlighted that the proposed rates for Saturday and Sunday work did not adequately reflect the legislative standards for penalty rates, and the shift loadings for night work were insufficiently detailed. Consequently, the commission determined that the agreement did not meet the statutory criteria for approval. The commission's decision underscored the importance of ensuring that enterprise agreements comply with the legislative framework to safeguard the rights of employees and maintain industrial harmony.

The commission did not approve the SKS Technologies Victoria Employee Agreement 2025-2029, as it did not meet the necessary legislative standards. The applicant was directed to revise the agreement to address the deficiencies identified and resubmit it for approval. The commission's decision emphasised the need for enterprise agreements to provide fair and reasonable terms and conditions of employment, ensuring compliance with the Fair Work Act and Regulations. The outcome underscored the commission's commitment to upholding the rights of employees and maintaining a balanced approach to industrial relations.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established