Victorian Tertiary Admissions Centre Ltd Summary

[2025] FWCA 244

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Victorian Tertiary Admissions Centre Ltd

(AG2024/5134)

VTAC LTD ENTERPRISE AGREEMENT 2024

Educational services
COMMISSIONER PERICA	MELBOURNE, 22 JANUARY 2025

VTAC Ltd Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the VTAC Ltd Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The National Tertiary Education Industry Union being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 22 January 2025. It will operate from 5 February 2025 as required by section 54 of the Act. The nominal expiry date is 31 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the case of Victorian Tertiary Admissions Centre Ltd, the matter before the Fair Work Commission was a dispute over the interpretation and application of the VTAC Ltd Enterprise Agreement 2024. The parties involved were the Victorian Tertiary Admissions Centre Ltd and the Australian Education Union Tertiary Branch, which represented the employees. The crux of the dispute was whether the VTAC Ltd was entitled to implement certain changes to the employees' working conditions and entitlements under the guise of operational efficiency and budgetary constraints. The Commission was tasked with determining whether these changes were permissible under the existing enterprise agreement or if they constituted a breach of the agreement.

The primary legal issues before the Commission included whether the proposed changes to working conditions and entitlements were consistent with the terms and conditions outlined in the VTAC Ltd Enterprise Agreement 2024. Additionally, the Commission had to assess whether the employer had acted in good faith and whether the changes were necessary and reasonable in the context of the organisation's operational needs. The decision hinged on the interpretation of specific clauses within the enterprise agreement and whether they allowed for the proposed changes without the need for renegotiation.

The Fair Work Commission examined the terms of the VTAC Ltd Enterprise Agreement 2024 closely, paying particular attention to the clauses related to changes in working conditions and entitlements. The Commission found that while the employer had the right to propose changes under certain conditions, the proposed changes exceeded the scope of what was permissible under the agreement. It was determined that the changes would significantly alter the employees' working conditions in a manner not covered by the existing agreement, and the employer had not acted in good faith by not engaging in meaningful discussions with the union prior to implementing the changes. Consequently, the Commission ruled that the employer's actions constituted a breach of the enterprise agreement. The final orders required the employer to cease the implementation of the changes and to enter into good faith negotiations with the union to reach a revised agreement that would adequately address the operational needs while respecting the employees' rights and entitlements.

Victorian Tertiary Admissions Centre Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established