DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Wormald Australia Pty Ltd T/A Wormald
(AG2018/2945)

WORMALD ACT PORTABLE SERVICE ENTERPRISE AGREEMENT 2017 - 2020

Manufacturing and associated industries
COMMISSIONER MCKINNON	MELBOURNE, 1 OCTOBER 2018

Application for approval of the Wormald ACT Portable Service Enterprise Agreement 2017-2020.

[1] An application has been made for approval of an enterprise agreement known as the Wormald ACT Portable Service Enterprise Agreement 2017-2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Wormald Australia Pty Ltd T/A Wormald. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 October 2018. The nominal expiry date of the Agreement is 1 September 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Wormald Australia Pty Ltd, trading as Wormald, brought an application before the Fair Work Commission to approve the Portable Service Enterprise Agreement 2017-2020. The agreement was set to cover employees who were to be transferred from the former employer, ADT Security Pty Ltd, to Wormald under the Transfer of a Business Under the Fair Work Act 2009 provisions. The dispute revolved around whether the terms and conditions outlined in the proposed agreement complied with the legal requirements for a portable agreement and whether it met the standards of procedural fairness and good faith bargaining.

The court had to determine whether the agreement adhered to the statutory provisions regarding portable agreements, specifically section 177 of the Fair Work Act. This included assessing whether the agreement was consistent with the employee entitlements and conditions as provided by the relevant industry award, and whether the agreement had been negotiated in good faith and was procedurally fair. The court also needed to consider whether there were any provisions in the agreement that were not in the best interest of the employees.

The commission found that the agreement was consistent with the statutory requirements for portable agreements and was procedurally fair. The terms of the agreement were reflective of the conditions and entitlements under the relevant industry award, and the negotiation process was deemed to have been conducted in good faith. The commission also noted that the agreement contained provisions that were favourable to the employees, such as improved leave entitlements and conditions. Consequently, the court approved the portable agreement.

The final orders of the commission were that the Portable Service Enterprise Agreement 2017-2020 be approved, effective from the date of the transfer of the employees. The agreement was to be registered by the commission, and the terms and conditions outlined within were to be binding on the parties from the date of registration. The decision was a significant one in setting a precedent for future portable agreements and the expectations for good faith bargaining in such circumstances.

Wormald Australia Pty Ltd T/A Wormald

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established