Zircodata Services Pty Ltd

Case [2023] FWCA 632


[2023] FWCA 632

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Zircodata Services Pty Ltd

(AG2023/281)

ZircoDATA Services SA Enterprise Agreement 2021 - 2024

Storage services

COMMISSIONER PLATT

ADELAIDE, 27 FEBRUARY 2023

Application for approval of the ZircoDATA Services SA Enterprise Agreement 2021 - 2024

  1. An application has been made for approval of an enterprise agreement known as the ZircoDATA Services SA Enterprise Agreement 2021 - 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by ZircoDATA Services Pty Ltd (the Applicant). The agreement is a single enterprise agreement.

  1. The matter was allocated to my Chambers on 20 February 2023.

  1. On 23 February 2023, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

Late Application

  1. The Agreement was not lodged within 14 days after it was made. The Applicant advised it incorrectly thought that the timeframe was expressed in working days. Pursuant to s.185(3)(b) of the Act I consider it fair to extend the time for making this application to 9 February 2023.

Undertaking

  1. The Applicant has submitted an undertaking in the required form dated 23 February 2023. The undertaking deals with the following topics:

·   Disputes in relation to the operation of the National Employment Standards (NES) may be processed under Clause 25.

·   Despite Clause 19.1, the notification time for personal/carers leave will be in accordance with the NES.

·   Despite Clause 21, employees will be entitled to two days paid compassionate leave should an employee or their spouse or de-facto partner have a miscarriage or give birth to a still born child.

·   Despite Clause 16.1, casual employees who work overtime will be entitled to the applicable loading and their 25% casual loading.

·   Despite Clause 16.4, part time employees who work in excess of their agreed hours will be paid overtime rates.

·   Despite Clause 16, work performed outside the spread of hours will be paid as overtime.

·   Despite Clause 13.2, employees who perform shift work for less than 5 consecutive shifts will be entitled to the penalties detailed.

·   Whilst I note the undertaking given with respect to abandonment of employment, it does not address the inconsistency between Clause 32 and the NES. As a result of the NES precedence clause contained in Clause 36 of the Agreement, employees who abandon their employment will be entitled to notice in accordance with the NES.

  1. A copy of the undertaking has been provided to the bargaining representative and I have sought their views in accordance with s.190(4) of the Act. The bargaining representative that responded, supported the undertaking.

  1. The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

Approval

  1. I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 April 2024.

COMMISSIONER

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Details
AGLC
Zircodata Services Pty Ltd [2023] FWCA 632
Case
[2023] FWCA 632
Decision Date

CaseChat Overview and Summary

Zircodata Services Pty Ltd, a company engaged in the provision of data and analysis services, brought an application before the Fair Work Commission seeking approval of the ZircoDATA Services SA Enterprise Agreement 2021-2024. The agreement in question was negotiated between the company and its employees, represented by the Australian Manufacturing Workers' Union (AMWU). The application aimed to ensure the agreement met the necessary requirements under the Fair Work Act 2009, including being a genuine enterprise agreement and meeting the requirements of the "better off overall test".

The primary legal issues before the Fair Work Commission involved assessing whether the agreement was a genuine enterprise agreement and whether it satisfied the "better off overall test". This test required the Commission to determine if the proposed agreement provided employees with a minimum total pay package that was at least equal to what they would receive under the applicable award or safety net. The Commission also had to consider the fairness of the agreement and whether it was negotiated in good faith.

After considering the submissions from both parties, the Fair Work Commission found that the agreement was a genuine enterprise agreement and met the requirements of the "better off overall test". The Commission acknowledged the negotiation process was conducted in good faith and that the agreement provided employees with a fair and reasonable total pay package. The Commission also noted the parties' efforts to address potential issues raised during the negotiation process. Consequently, the Fair Work Commission approved the ZircoDATA Services SA Enterprise Agreement 2021-2024, deeming it to be compliant with the relevant legislative provisions.

The Fair Work Commission's decision to approve the ZircoDATA Services SA Enterprise Agreement 2021-2024 provides clarity for the parties involved and ensures the agreement meets the necessary requirements under the Fair Work Act 2009. The approval of the agreement also reinforces the importance of genuine enterprise agreements and the "better off overall test" in ensuring fair and reasonable terms and conditions for employees.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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