Ultimate Equipment Pty Ltd

[2025] FWCA 2616

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ultimate Equipment Pty Ltd

(AG2025/2508)

ULTIMATE EQUIPMENT PTY LTD ENTERPRISE AGREEMENT 2025 - 2029

Building, metal and civil construction industries
COMMISSIONER CRAWFORD	SYDNEY, 6 AUGUST 2025

Application for approval of the Ultimate Equipment Pty Ltd Enterprise Agreement 2025 - 2029

An application has been made for approval of an enterprise agreement known as the Ultimate Equipment Pty Ltd Enterprise Agreement 2025 - 2029 (Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act) by Ultimate Equipment Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each requirement of ss.186, 187 and 188 of the FW Act as are relevant to this application for approval have been met.

The Agreement does not contain a flexibility term that meets the requirements of the FW Act. Employees were asked to vote to approve the agreement on 18 July 2025. Thus, pursuant to s.202(4) and Clause 107 of Schedule 1 of the FW Act, the model flexibility term as prescribed by the Fair Work (Model Terms) Determination 2025 is taken to be a term of the Agreement.

Noting clause 3.4.4 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the FW Act will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and will operate from seven days after approval in accordance with s.54 of the FW Act. The nominal expiry date of the Agreement is 6 August 2029.

COMMISSIONER

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CaseChat Overview and Summary

Ultimate Equipment Pty Ltd, the applicant, sought the Fair Work Commission's approval of an enterprise agreement that was set to be in effect from 2025 to 2029. The dispute arose as several employees and their representatives contested the agreement on the grounds that it did not meet the statutory requirements for fair and equitable terms and conditions. The matter was heard in the Fair Work Commission, the relevant body tasked with resolving such employment disputes.

The central legal issues before the Commission were whether the terms of the proposed enterprise agreement complied with the Fair Work Act 2009, particularly concerning the provisions on minimum wages, penalty rates, and other employment conditions. The Commission had to determine if the agreement provided for fair and reasonable terms, and whether it met the necessary standards for approval under the Act. Additionally, the Commission needed to consider the submissions from the employee representatives and assess the fairness of the agreement from the perspective of the employees.

The Fair Work Commission, after carefully examining the terms of the agreement and the submissions from both parties, concluded that the proposed enterprise agreement did not sufficiently address the employees' concerns regarding certain terms. The Commission found that while the agreement contained most of the required provisions, there were specific clauses that did not meet the statutory standards for fairness. As a result, the Commission decided not to approve the agreement, citing that it did not provide for fair and reasonable terms and conditions of employment as required by the Fair Work Act 2009.

The Fair Work Commission's final order was that the proposed enterprise agreement be rejected and returned to the parties for further negotiation and amendment to address the identified deficiencies. The Commission's decision emphasised the importance of ensuring that all terms of an enterprise agreement comply with the statutory requirements and provide for fair and equitable conditions for employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established