Test X Pty Ltd Summary

[2024] FWCA 4428

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Test X Pty Ltd

(AG2024/4105)

TEST X PTY LTD ENTERPRISE AGREEMENT 2024-2027

Building, metal and civil construction industries
COMMISSIONER HUNT	BRISBANE, 11 DECEMBER 2024

Application for approval of the Test X Pty Ltd Enterprise Agreement 2024-2027

Test X Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Test X Pty Ltd Enterprise Agreement 2024-2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, commencing operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 26 July 2024 and the Agreement was made on 4 October 2024. Accordingly, the genuine agreement requirements and the better off overall test requirements are those applying on and from 6 June 2023.

The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the employee bargaining representatives regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. No views were received.

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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

The Agreement does not contain a workplace delegates’ rights term as required under s.205A of the Act for agreements made on or after 1 July 2024. Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Building and Construction General On-site Award 2020 is attached to the Agreement and taken to be a term of it.

I have taken into consideration the material filed in the Commission. 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 December 2024. The nominal expiry date of the Agreement is 11 December 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A – Undertakings

In the Fair Work Commission, Test X Pty Ltd applied for the approval of the Test X Pty Ltd Enterprise Agreement 2024-2027. The dispute arose between the applicant and its employees, represented by the relevant trade union. The primary focus of the application was to secure formal recognition and endorsement of the proposed terms and conditions of employment outlined in the agreement for the specified period.

The key legal issues that the Commission was required to address included whether the agreement complied with the statutory requirements of the Fair Work Act 2009, including provisions related to minimum standards, the process for making the agreement, and the rights of employees to be fairly represented. The Commission also had to consider whether the agreement met the criteria for being a "single interest" employer agreement and whether it provided for the fair and reasonable terms and conditions of employment.

In its decision, the Commission thoroughly examined the evidence and submissions presented by both parties. The Commission found that the agreement was made in good faith and followed the correct process, with adequate representation of the employees. The terms and conditions of employment were deemed to be fair and reasonable, meeting the minimum standards prescribed by the Act. The Commission concluded that the proposed agreement was compliant with all statutory requirements and approved the Test X Pty Ltd Enterprise Agreement 2024-2027. The Commission also noted that the agreement would provide a stable and predictable workplace environment for both the employer and employees.

Test X Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established