Suncorp Insurance Services Limited Suncorp Staff Pty Ltd Australian Associated Motor Insurers Limited

[2025] FWCA 469

[2025] FWCA 469

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Suncorp Insurance Services Limited
Suncorp Staff Pty Ltd
Australian Associated Motor Insurers Limited

(AG2024/5274)

SUNCORP ENTERPRISE AGREEMENT 2025

Banking, finance and insurance industry
DEPUTY PRESIDENT WRIGHT	SYDNEY, 6 FEBRUARY 2025

Application for approval of the Suncorp Enterprise Agreement 2025

Introduction

1. Suncorp Insurance Services Limited, Suncorp Staff Pty Ltd and Australian Associated Motor Insurers Limited (collectively referred to as Suncorp) have made an application for approval of an enterprise agreement known as the Suncorp Enterprise Agreement 2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

1. The Agreement will apply to employees who are covered by the Banking, Finance and Insurance Award 2020 (the Award).

Definition of a Shiftworker

1. Schedule 2 of the Agreement defines a shiftworker consistent with the definition in clause 22.2 of the Award, however, it does not provide that it is for the purposes of the National Employment Standards (NES) as required by s.196 of the Act.

1. Suncorp submitted that it does not currently operate on a 24/7 basis and has no intention of engaging employees as shiftworkers. The Finance Sector Union of Australia (FSU) has not expressed any disagreement in relation to this matter. I am therefore satisfied that it is reasonably foreseeable that the Employers will not employ shiftworkers during the life of this Agreement.

Deduction on Termination

1. Clause 60(b) of the Agreement states that if an employee fails to provide the required notice, Suncorp may deduct an amount equivalent to one week’s notice from any payment owing. The effect of this clause is that it appears to permit deductions from the employee’s NES entitlements, which is inconsistent with Clause 31.1(d) of the Award. The Award limits deductions to wages of up to one week, excluding NES entitlements.

1. I note that in accordance with the NES precedence term in Clause 6(b) of the Agreement, this clause will be read and interpreted in conjunction with the NES.

Public Holiday Minimum Engagement

1. The Agreement does not specify a minimum payment for work performed on public holidays. In contrast, clause 27.4 of the Award guarantees a minimum of four hours’ pay, provided the employee is available for that duration.

1. Suncorp provided an undertaking to address this issue.

Annualised Salaries

1. The Agreement provides for fixed salary employees to receive an all-inclusive salary intended to compensate for various entitlements, including overtime, penalty rates, annual leave loading, and public holiday loading. While the minimum fixed salaries exceed Award rates by 25.02%-151.13% (or 41.44%-55.53% for rostered employees), concerns arise regarding whether these above award rates sufficiently compensate employees who regularly work considerable overtime or perform frequent overtime and public holiday work. Additionally, the clause does not contain safeguards equivalent to those in clause 17 of the Award or the decision in SDAEA v Beechworth Bakery Employee Co Pty Ltd t/a Beechworth Bakery,[1] such as a written agreement specifying outer limits on ordinary and overtime hours and a requirement for the employer to conduct a reconciliation process to ensure no underpayments occur.

1. Suncorp submitted that the above award rates under the Agreement are sufficient to account for additional hours worked, arguing that, for the 25.02% margin above the Award to be surpassed, a full-time employee would need to work more than nine hours at double time each fortnightly roster cycle. Further, the Authorised Time Standard, while not incorporated into the Agreement, sets out processes for identifying Authorised Overtime and Authorised Additional Hours, which must be recorded and approved for payment in exceptional circumstances. Suncorp asserts that these processes ensure employees are appropriately compensated and prevent situations where they are required to work excessive hours without payment. The Authorised Time Standard was provided to the Commission for review.

Loaded Rates for Casual Employees

1. The Agreement provides for casual employees to be paid an hourly rate derived from dividing the base pay or fixed salary and applying a casual loading, potentially resulting in a loaded rate. As identified in the Loaded Rates Agreements decision,[2] casual employees receiving loaded rates could be engaged solely during penalty rate periods without receiving the penalty rates they would have been entitled to under the Award, potentially leaving them worse off.[3]

1. Suncorp submitted that it engages a small number of casual employees (56 as of January 2025), the majority of whom (50) are interns working in the Technology and Operations team, with employment structured around their university studies. The remaining casual employees work ad hoc roles within the People and Technology teams and are not engaged for public holiday or overtime work. Suncorp further states that no casual employee has worked a public holiday or claimed overtime in the past 12 months and that all Authorised Time, including ordinary hours, Authorised Additional Hours, and Authorised Overtime, must be recorded in timesheets in accordance with the Authorised Time Standard to ensure correct payment. Suncorp also submitted that the casual conversion amendments introduced in August 2024, the inclusion of the casual employee definition and the new casual employee choice pathway laws limit the number of ongoing casual engagements. Given that minimum Fixed Salary hourly rates (excluding casual loading) already exceed the Award, and casuals are generally paid above these rates in practice, Suncorp contends that casual employees pass the BOOT even with Loaded Rates.

Section 190 Undertakings

1. The Employers have provided written undertakings. A copy of the undertakings is attached in Schedule 3. 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.

Section 186, 187, 188 and 190

1. Subject to the undertakings referred to above and taking into account Suncorp’s submissions in relation to each of the NES and BOOT issues raised by the Commission, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

Section 183 Bargaining Representatives

1. The Finance Sector Union of Australia (FSU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it.

1. In accordance with s.201(2), I note that the Agreement covers the FSU.
   

Approval

1. The Agreement is approved and, in accordance with s.54(1)(b) of the Act, will operate from 22 March 2025. The nominal expiry date of the Agreement is 22 March 2028.

DEPUTY PRESIDENT

[1] [2017] FWCFB1664

[2] [2018] FWCFB 3610

[3] [2018] FWCFB 3610.

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