See Fair Work Act 2009 s.188(2)
The Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Act 2018 (the Amending Act) has revised s.188 of the Fair Work Act to provide a mechanism for the Fair Work Commission to conclude that an enterprise agreement has been genuinely agreed, within the meaning of s.186(2)(a), despite 'minor procedural or technical errors'.
Section 188(2) reads as follows:
- An enterprise agreement has also been genuinely agreed to by the employees covered by the agreement if the [Commission] is satisfied that:
- the agreement would have been genuinely agreed to within the meaning of subsection (1) but for minor procedural or technical errors made in relation to the requirements mentioned in paragraph (1)(a) or (b), or the requirements of sections 173 and 174 relating to a notice of employee representational rights; and
- the employees covered by the agreement were not likely to have been disadvantaged by the errors, in relation to the requirements mentioned in paragraph (1)(a) or (b), or the requirements of sections 173 and 174.[1]
The Amending Act received the Royal Assent on 11 December 2018 and the amendments to s.188 commenced on 12 December 2018.
Examples of what may be considered minor procedural or technical errors is provided in the Revised Explanatory Memorandum to the Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017:[2]
Examples of minor procedural or technical errors could include (without limitation):
The Full Bench of the Commission considered how the introduction of s.188(2) could be applied in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others.[3]
The following propositions[4] emerged from the Full Bench’s consideration of the proper construction of s.188(2):
Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others[5]
Section | Procedural or technical requirement |
---|---|
188(1)(a) |
Comply with subsection 180(2) – take all reasonable steps to ensure that relevant employees are given the written text of the agreement and any materials incorporated by reference during the access period or that the relevant employees are given access to these materials throughout the access period |
Comply with subsection 180(3) – take all reasonable steps to notify the relevant employees of the time, place and method of vote, prior to the start of the access period |
|
Comply with subsection 180(5)(a) – take all reasonable steps to ensure the terms of the agreement and their effects are explained to the relevant employees |
|
Comply with subsection 180(5)(b) – take all reasonable steps to ensure the explanation is provided in an appropriate manner taking into account the particular circumstances and needs of the relevant employees |
|
Comply with subsection 181(2) – the employer must not request that the employees approve a proposed agreement until at least 21 days after the day on which the last notice of employee representational rights (NERR) is given |
|
188(1)(b) |
The agreement must be made in accordance with subsection 182(1) or (2) |
173(1) |
Take all reasonable steps to give a NERR to each employee who will be covered by the agreement and is employed at the notification time for the agreement |
173(3) |
Issue the NERR as soon as practicable, no later than 14 days after the notification time |
174(1A)(a) |
The NERR must contain the content prescribed by the regulations |
174(1A)(b) |
The NERR must not contain any other content |
174(1A)(c) |
The NERR must be in the form prescribed by the regulations |
When considering the definition of minor procedural or technical errors the Full Bench found the following:[6]
A procedural requirement is one which requires an employer to follow a particular process or course of action.
For example:
An example of a procedural requirement may be providing employees with a NERR as soon as practicable, and not later than 14 days after the notification time (s.173(3)), or ensuring there are at least 7 clear days between notifying employees of the voting process and the commencement of that process (s.180(3)).
A technical requirement includes an obligation to comply strictly with the form and content of an instrument, such as the NERR.
Table 2 (see below) examines each of the procedural or technical requirements, considers the underlying purpose of these requirements and outlines some ways in which employees might be disadvantaged by a minor technical or procedural error.
For example:
Informing the employees of the time and place at which the vote will occur, and the voting method that will be used as per the requirements of ss.180(3)(a) and (b) just after the start of the 7 day access period (for instance 6 days before the start of the voting process) is likely to be a minor error in most cases.
However this will depend on the circumstances.
If it is the first agreement at the enterprise; the bargaining representatives are inexperienced and the employees are predominantly from a non-English speaking background, then it may not be a minor error.
Conversely, only informing the employees of the time and place at which the vote will occur some 4 days before the voting process starts may be a 'minor error where there is a history of bargaining at the enterprise; the agreement is, in effect, a roll over agreement; the employer takes further active steps to remind employees of the time and date of the vote; and a high proportion of employees actually vote.
For example:
The need to inform employees of the time and date of the vote (s.180(3)(a)) is more significant than informing them of the voting method (s.180(3)(b)) – the first requirement may impact on the employees' capacity to participate in the voting process, the second may not.
For example:
The deletion of the prescribed text of the NERR which deals with an employee's right to appoint a bargaining representative and the role of the unions as the default bargaining representatives. But, again, it may depend on the circumstances.
The impact of the errors is to be assessed by reference to the objects of those requirements and not by reference to any more general sense of genuine agreement.
Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others[7]
Section | Procedural or technical requirement | Underlying purpose of requirement | How might employees be disadvantaged? |
---|---|---|---|
188(1)(a) |
Comply with subsection 180(2) – take all reasonable steps to ensure that relevant employees are given the written text of the agreement and any materials incorporated by reference during the access period OR that the relevant employees are given access to these materials throughout the access period |
To ensure employees have a reasonable chance to make an informed decision when voting |
In the circumstances employees may not have had effective access to materials or insufficient time to consider them to make an informed decision when voting |
Comply with subsection 180(3) – take all reasonable steps to notify the relevant employees of the time, place and method of vote, prior to the start of the access period |
To ensure employees are able to attend and participate in the voting process (should they choose to do so) |
In the circumstances employees might be unaware of the voting process occurring thus preventing them from effectively participating in the voting process |
|
Comply with subsection 180(5)(a) – take all reasonable steps to the terms of the agreement and their effects are explained to the relevant employees |
Ensure that employees understand the effect of the agreement that is to be voted on, enabling them to make an informed decision |
In the circumstances the steps may have been taken such that the employees might not be in a position to make an informed decision about the terms of the agreement upon which they are eligible to vote |
|
Comply with subsection 180(5)(b) – take all reasonable steps to ensure the explanation is provided in an appropriate manner taking into account the particular circumstances and needs of the relevant employees |
Ensure that particular classes of employees are able to understand the agreement not withstanding any particular circumstances or needs |
In the circumstances the employees may have received the explanation in a language they do not speak thus they may not be in a position to make an informed decision when voting |
|
Comply with subsection 181(2) – the employer must not request that the employees approve a proposed agreement until at least 21 days after the day on which the last NERR is given |
To provide the employees with a minimum period of time for the bargaining process to occur before voting on an agreement |
In the circumstances the period is cut short preventing the employees from effectively appointing bargaining representatives and participating in genuine good faith bargaining |
|
188(1)(b) |
The agreement must be made in accordance with subsection 182(1) or (2) |
|
|
173(1) |
Take all reasonable steps to give a NERR to each employee who will be covered by the agreement and is employed at the notification time for the agreement |
To ensure that all employees are aware that their employer intends bargain for an enterprise agreement and that they are aware of their representational rights |
In the circumstances the NERR may be so altered that employees fail to understand and exercise their representational rights and effectively participate in the bargaining process |
173(3) |
Issue the NERR as soon as practicable, no later than 14 days after the notification time |
To ensure that the employees understand their representational rights within a reasonable period before bargaining commences thus allowing them to exercise those rights in a timely manner |
In the circumstances the employees may have received the NERR later than the 14 days thus period preventing them from attending initial bargaining meetings and thus effectively influencing the bargaining process even after they do participate |
174(1A)(a) |
The NERR must contain the content prescribed by the regulations |
To ensure that the employees understand the scope of the proposed agreement, who is the employer and what their representational rights are prior to the actual bargaining commencing |
In the circumstances the employer may have been incorrectly named within a complex group of companies thus creating real confusion resulting in employees failing to effectively participate in the bargaining |
174(1A)(b) |
The NERR must not contain any other content |
||
174(1A)(c) |
The NERR must be in the form prescribed by the regulations |
[1] Fair Work Act s.188(2).
[2] Revised Explanatory Memorandum to Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017 at para. 47.
[3] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others [2019] FWCFB 318 (Ross J, Hatcher VP, Saunders DP, 18 January 2019).
[4] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others [2019] FWCFB 318 (Ross J, Hatcher VP, Saunders DP, 18 January 2019) at para. 117.
[5] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others [2019] FWCFB 318 (Ross J, Hatcher VP, Saunders DP, 18 January 2019) at para. 52.
[6] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others [2019] FWCFB 318 (Ross J, Hatcher VP, Saunders DP, 18 January 2019) at para. 117.
[7] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others [2019] FWCFB 318 (Ross J, Hatcher VP, Saunders DP, 18 January 2019) at para. 74.