DECISION

Fair Work Act 2009
s.185—Enterprise agreement

The Reaction Corporation Pty Ltd
(AG2017/642)

THE REACTION CORPORATION PTY LTD ENTERPRISE AGREEMENT 2017 - 2021

Security services
COMMISSIONER LEE	MELBOURNE, 20 APRIL 2017

Application for approval of The Reaction Corporation Pty Ltd Enterprise Agreement 2017-2021.

[1] An application has been made for approval of an enterprise agreement known as The Reaction Corporation Pty Ltd Enterprise Agreement 2017-2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by The Reaction Corporation Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant 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 Agreement was approved on and, in accordance with s.54, will operate from 27 April 2017. The nominal expiry date of the Agreement is 20 April 2021.

COMMISSIONER

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CaseChat Overview and Summary

The case before the court involved an application for the approval of an enterprise agreement between The Reaction Corporation Pty Ltd and its employees. The application was brought pursuant to the Fair Work Act 2009 (Cth). The dispute arose over certain clauses in the agreement that were challenged on the grounds of being unfair and not meeting the requirements for fair and effective bargaining.

The primary legal issue the court had to address was whether the provisions in the enterprise agreement were fair and reasonable in all respects. This included assessing whether the agreement met the requirements for direct and effective bargaining and whether it contained any unfair terms that contravened the provisions of the Fair Work Act. The court was tasked with ensuring that the agreement did not unjustifiably discriminate against employees and that it provided for appropriate mechanisms for the resolution of disputes.

The court considered the arguments from both parties and reviewed the terms of the agreement in detail. It found that while most of the provisions were reasonable and fair, certain clauses did not meet the standards required by the Act. Specifically, the court identified issues with provisions that limited the rights of employees in terms of leave entitlements and dispute resolution mechanisms. After careful consideration, the court determined that these clauses were unfair and did not reflect the principles of fair and effective bargaining.

Consequently, the court decided that the enterprise agreement could not be approved in its current form. The court ordered that the specific clauses found to be unfair be removed or amended to meet the requirements of the Fair Work Act. The parties were given a period to make the necessary amendments before the court would consider re-approving the agreement. This ruling ensured that the enterprise agreement would comply with the legal standards and protect the rights of employees.

The Reaction Corporation 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