ARTICLE · 16 MARCH 2011

FWA Full Bench clarifies tests for approval of agreements

Clayton Utz

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Deficiencies in required declarations can be easily remedied, and procedures for notifying employees of the content of proposed agreements and explaining the terms are only those that require "reasonable steps".

AustraliaEmployment and HR

Jim Simmonds

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Key Points:

Deficiencies in required declarations can be easily remedied, and procedures for notifying employees of the content of proposed agreements and explaining the terms are only those that require "reasonable steps".

Employers seeking the approval of Fair Work Australia (FWA) for an enterprise agreement must satisfy the tribunal of a number of matters. This article deals with the requirement to provide information to FWA by way of written declaration, and the necessary steps to be taken prior to calling on employees to vote on the agreement.

The decision of the Full Bench of FWA in McDonalds Australia Pty Ltd v Shop Distributive and Allied Employees Association [2010] FWAFB 4602 has clarified the operation of various tests that FWA must apply before approving enterprise agreements. The appeal followed a decision of Commissioner McKenna in which she found that the McDonald's Australia Enterprise Agreement 2009 was incapable of approval.

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