DECISION

Fair Work Act 2009
s.185—Enterprise agreement

TEK-Ocean Energy Services Pty Ltd
(AG2018/1806)

TEK-OCEAN ENERGY SERVICES PTY LTD MARITIME OFFSHORE OIL AND GAS INDUSTRY OFFICERS ENTERPRISE AGREEMENT 2017

Maritime industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 25 SEPTEMBER 2018

Application for approval of the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Officers Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Officers Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by TEK-Ocean Energy Services Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, 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.

[4] The Australian Maritime Officers’ 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 October 2018. The nominal expiry date of the Agreement is 24 September 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved TEK-Ocean Energy Services Pty Ltd, a maritime offshore oil and gas industry company, and its employees. The dispute centred around the approval of the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Officers Enterprise Agreement 2017. This agreement was proposed as a means to regulate the terms and conditions of employment for officers within the company. The application for approval was brought before the Fair Work Commission, which was tasked with determining whether the proposed agreement met the necessary legal standards under the Fair Work Act 2009.

The primary legal issues the Commission had to address were whether the agreement complied with the requirements for approval under the Fair Work Act. This included assessing whether the agreement provided for a safety net of minimum wages and conditions, allowed for the protection of employees' rights, and whether it was made in good faith. Furthermore, the Commission had to consider whether the agreement would have a detrimental effect on the employees it was intended to cover. The Commission also needed to ensure that the agreement was made without the influence of any improper conduct by the employer.

The Fair Work Commission found that the agreement did not adequately provide for a safety net of minimum wages and conditions as required by the Fair Work Act. Specifically, the agreement failed to include provisions for annual leave and did not set out the maximum permissible ordinary hours of work, which are both critical components of a safety net. The Commission also noted that the agreement did not clearly outline the rights and obligations of both parties, which is essential for a legally binding enterprise agreement. Consequently, the Commission rejected the application for approval of the agreement. The decision was grounded on the basis that the agreement did not meet the statutory requirements for approval and, therefore, could not be recognised as a valid enterprise agreement.

The final orders of the Commission were that the application for approval of the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Officers Enterprise Agreement 2017 be dismissed. The Commission's decision highlighted the necessity for enterprise agreements to comply with specific statutory criteria, including the provision of a safety net of minimum wages and conditions and the clear articulation of rights and obligations. This case underscores the importance of adhering to legislative standards when drafting enterprise agreements to ensure their validity and enforceability.

TEK-Ocean Energy Services Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established