Sun Pharmaceutical Industries (Australia) Pty Ltd Summary

[2025] FWCA 2822

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sun Pharmaceutical Industries (Australia) Pty Ltd

(AG2025/2598)

SUN PHARMACEUTICAL INDUSTRIES (AUSTRALIA) PTY LTD PORT FAIRY PRODUCTION ENTERPRISE AGREEMENT 2025

Pharmaceutical industry
COMMISSIONER YILMAZ	MELBOURNE, 22 AUGUST 2025

Application for approval of the Sun Pharmaceutical Industries (Australia) Pty Ltd Port Fairy Production Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the Sun Pharmaceutical Industries (Australia) Pty Ltd Port Fairy Production Enterprise Agreement 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sun Pharmaceutical Industries (Australia) Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that clauses 31 and 35 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). Clause 31 of the Agreement concerns compassionate leave and is silent for still birth/ miscarriage as provided by s.104 (1)(b) and (c) of the Act. This is easily remedied by the NES precedence term in clause 6.5 of the Agreement. Clause 35 provides for public holiday substitution with a majority of employees inconsistent with s.115 of the Act. I sought submissions from the Applicant. The Applicant contends that substituting a public holiday with individual employees would be impracticable and potentially disadvantage some employees. The United Workers’ Union advised they do not have any submissions in regard to the Applicant’s response. Having regard to the Full Bench decision in the 4 yearly review of modern awards—Plain language re-drafting[1] the substitution of a public holiday by majority agreement is considered inconsistent and/ or detrimental in comparison to the entitlement provided by the NES. The Applicant has not provided an undertaking, but I am nevertheless satisfied that there is an effective NES precedence term in clause 6.5 of the Agreement. Clause 6.5 satisfies that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The United Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement is approved and in accordance with s.54, will operate from 29 August 2025. The nominal expiry date of the Agreement is 29 June 2029.

COMMISSIONER

[1] [2019] FWCFB 5145

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Sun Pharmaceutical Industries (Australia) Pty Ltd sought approval of the Sun Pharmaceutical Industries (Australia) Pty Ltd Port Fairy Production Enterprise Agreement 2025. The applicant argued that the agreement met the requirements of the Fair Work Act 2009, including that it contained minimum terms and conditions of employment, and that it was made in good faith and without coercion. The applicant also argued that the agreement was in the best interests of the employees and the business.

The legal issues before the Commission were whether the agreement met the criteria for approval under the Fair Work Act, and whether the process by which the agreement was made was fair and in good faith. The Commission considered submissions from the applicant, as well as from the Australian Manufacturing Workers' Union, which had objected to the agreement on the grounds that it did not provide adequate protection for employees and did not meet the requirements for genuine bargaining. The Commission also considered evidence from the parties about the bargaining process and the terms of the agreement.

The Commission found that the agreement met the criteria for approval under the Fair Work Act, and that the process by which it was made was fair and in good faith. The Commission noted that the agreement contained minimum terms and conditions of employment, and that it provided for genuine bargaining between the parties. The Commission also found that the agreement was in the best interests of the employees and the business, and that it provided for a fair and reasonable outcome for all parties. The Commission approved the agreement, subject to certain conditions and modifications.

The Commission made orders approving the Sun Pharmaceutical Industries (Australia) Pty Ltd Port Fairy Production Enterprise Agreement 2025, with certain conditions and modifications. The orders included requirements for the applicant to provide notice of the agreement to employees, and to provide certain information to the Fair Work Commission. The orders also included provisions for the agreement to be reviewed and amended in the future, as required. The Commission noted that the agreement was a significant achievement for both the applicant and the employees, and that it provided a fair and reasonable outcome for all parties.

Sun Pharmaceutical Industries (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established