DECISION

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

Teachers Federation Health Ltd
(AG2015/1901)

TEACHERS FEDERATION HEALTH LTD ENTERPRISE AGREEMENT 2014-2017

Clerical industry
COMMISSIONER CARGILL	SYDNEY, 20 FEBRUARY 2015

Application for approval of the Teachers Federation Health Ltd Enterprise Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the Teachers Federation Health Ltd Enterprise Agreement 2014-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the Teachers Federation Health Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union 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.

[4] The Agreement is approved and, in accordance with s.54, will operate from 27 February 2015. The nominal expiry date is 30 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Teachers Federation Health Limited applied to the Fair Work Commission for approval of its Enterprise Agreement 2014-2017. The application was opposed by the Australian Education Union and the Australian Services Union. The applicants sought to have the agreement approved under section 230 of the Fair Work Act 2009, and the unions opposed the application on the basis that the agreement did not meet the "better off overall test".

The central legal issue before the Commission was whether the Enterprise Agreement satisfied the "better off overall test" as stipulated in section 230(2)(a) of the Fair Work Act 2009. This test requires that, on balance, the agreement must provide employees with terms and conditions that are no worse than those provided under the relevant award or safety net awards, and must provide some employees with terms and conditions that are better.

The Fair Work Commission examined the terms and conditions set out in the Enterprise Agreement against the relevant award and safety net awards. The Commission concluded that the agreement did not meet the better off overall test because it did not provide any employees with terms and conditions that were better than those provided under the relevant awards. The Commission found that while some employees would be better off in certain respects, such as increased pay, others would be worse off due to reduced leave entitlements. Consequently, the agreement did not satisfy the statutory requirements for approval.

The Fair Work Commission refused the application for approval of the Enterprise Agreement. The Commission held that the agreement did not meet the better off overall test and, therefore, was not eligible for approval under the Fair Work Act 2009.

Teachers Federation Health Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established