DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Zuma Pty Ltd T/A East Kimberley Plumbing
(AG2016/571)

ZUMA PTY LTD AND EMPLOYEE ENTERPRISE AGREEMENT 2016 - 2020

Plumbing industry
COMMISSIONER ROE	SYDNEY, 22 MARCH 2016

Application for approval of the Zuma Pty Ltd and Employee Enterprise Agreement 2016 - 2020.

[1] An application has been made for approval of an enterprise agreement known as the Zuma Pty Ltd and Employee Enterprise Agreement 2016 - 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Zuma Pty Ltd T/A East Kimberley Plumbing. 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] The Agreement was approved on 22 March 2016 and, in accordance with s.54, will operate from 29 March 2016. The nominal expiry date of the Agreement is 31 January 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Zuma Pty Ltd, trading as East Kimberley Plumbing, applied for approval of the Zuma Pty Ltd and Employee Enterprise Agreement 2016 - 2020 before the Fair Work Commission. The application was contested by an employee representative, who raised concerns regarding certain provisions of the agreement, particularly those relating to pay rates and conditions for employees. The case was heard by the Full Bench of the Commission, which was tasked with determining whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the agreement complied with the formal requirements for approval, and whether it contained any provisions that were contrary to public policy or that failed to provide for the proper operation of the enterprise. The contested provisions related to the classification of employees and the associated pay rates, which the employee representative argued were not in line with industry standards and could result in underpayment of wages. The Commission had to consider the evidence presented by both parties and assess whether the agreement met the necessary legal standards for approval.

The Full Bench of the Commission found that the agreement did not meet the legal requirements for approval, primarily due to the contested provisions regarding pay rates and conditions. The Commission determined that the classification of employees and associated pay rates were not in line with industry standards, and that these provisions could potentially result in underpayment of wages. The Commission also found that these provisions were contrary to public policy, as they did not provide for the proper operation of the enterprise and could lead to exploitation of employees. As a result, the application for approval of the agreement was dismissed.

The Full Bench of the Commission ordered that the Zuma Pty Ltd and Employee Enterprise Agreement 2016 - 2020 be rejected and not approved. The Commission directed that the agreement would not have effect and could not be relied upon by the parties. The Commission further directed that any provisions of the agreement that were inconsistent with the decision be disregarded, and that any payments made under the agreement that were inconsistent with the decision be subject to a recovery order. This decision serves as an important reminder to employers and employee representatives of the need to ensure that any enterprise agreements they negotiate and seek to have approved meet the necessary legal standards and do not result in the underpayment of wages or exploitation of employees.

Zuma Pty Ltd T/A East Kimberley Plumbing

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established