ALDI Foods Pty Limited v Shop, Distributive & Allied Employees AssociationCitation:[2017] HCA 53Before:Kiefel CJ, Bell, Gageler, Keane, Nettle, Gordon, Edelman JJDate:06 Dec 2017Case Number:M33/2017Read more

ALDI Foods Pty Limited v Shop, Distributive & Allied Employees AssociationCitation:[2017] HCA 53Before:Kiefel CJ, Bell, Gageler, Keane, Nettle, Gordon, Edelman JJDate:06 Dec 2017Case Number:M33/2017Read more

The Court held that an enterprise agreement made with existing employees before the commencement of a new undertaking is not a greenfields agreement if those employees are to be employed in the new undertaking. The Commission must be satisfied that the agreement is genuinely agreed to by employees who will be covered by it, and must properly compare the agreement with the relevant modern award when applying the better off overall test.

Parties
Employer: Unknown (Employer); Employees: Unknown (Employees)
Jurisdiction
Australia
Judgment Date
06 December 2017
Procedural Posture
Industrial Law Approval of Enterprise Agreements / Judgment
Outcome
Appeal dismissed
Legal Topics
Enterprise Agreements, Approval Process, Greenfields Agreement, Better Off Overall Test
Industrial Law Enterprise Agreements Approval Process Greenfields Agreement Better Off Overall Test

Case Brief

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Parties

Unknown (Employer)

Employer

Unknown (Employees)

Employees

Procedural Posture

Industrial Law Approval of Enterprise Agreements / Judgment

Legal Issues

  1. 1 Whether an enterprise agreement made with existing employees before a new undertaking commences operations must be a greenfields agreement under s 172(2) and (4) of the Fair Work Act 2009 (Cth)
  2. 2 Whether the Fair Work Commission can approve a non-greenfields agreement under s 186 only if satisfied that the agreement is genuinely agreed to by employees covered by the agreement
  3. 3 Whether employees are 'covered by' the agreement from the time it is made or from the time they commence working under the agreement

Ratio Decidendi

The Court held that an enterprise agreement made with existing employees before the commencement of a new undertaking is not a greenfields agreement if those employees are to be employed in the new undertaking. The Commission must be satisfied that the agreement is genuinely agreed to by employees who will be covered by it, and must properly compare the agreement with the relevant modern award when applying the better off overall test.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.