Application for approval of the Henderson Fabrication, Materials Handling and Assembly Yard Works Greenfields Enterprise Agreement 2026

[1] An application has been made for approval of a greenfields agreement known as the Henderson Fabrication, Materials Handling and Assembly Yard Works Greenfields Enterprise Agreement 2026 (the Agreement). The application was made by Eris Energy Pty Ltd pursuant to s 185 of the Fair Work Act 2009 (Cth) (the Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval have been met.

[3] In accordance with s 187(5)(a) of the Act, I am satisfied that the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as Australian Manufacturing Workers' Union (the AMWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The following clauses in the Agreement may be inconsistent with the National Employment Standards (NES):

• Forfeiture of entitlements on termination: clauses 3.2.1 and 3.2.2 of the Agreement provide that, "should an employee not provide the required notice they agree to the forfeiture of entitlements to the equivalent value of the period of notice not given". This clause does not appear to limit the source of monies which may be deducted. This may permit the employer to withhold monies owing to the employee under the NES.

• Annual leave: clause 3.3 provides that, "at the time of termination, all untaken accrued annual leave shall be paid out. All proportionate leave paid out on termination shall also include the payment of leave loading, except in cases where an Employee is terminated for reasons of misconduct". This may be inconsistent with s 90(2) of the Act, which provides that if, when the employment of an employee ends, the employee has a period of untaken paid annual leave, the employer must pay the employee the amount that would have been payable to the employee had the employee taken that period of leave.

• Substitution of public holidays: clause 3.4.1 of the Agreement provides for the substitution of public holidays by agreement between the company and the majority of employees. This is inconsistent with s 115(4) of the Act, which provides that enterprise agreements may include a term for an employer and an employee to agree on the substitution of a public holiday.

• Notification of absence: clause 3.5.2 of the Agreement provides that, "An employee shall inform the Company of the Employee's inability to attend for duty within 2 hours of the commencement of such absence." It is unclear whether this may be after the commencement time and may be inconsistent with s 107 of the Act.

[5] However, noting clause 7.5 of the Agreement, I am satisfied that where there is an inconsistency with the NES and the NES provides a more beneficial entitlement, the NES will prevail to the extent of any inconsistency.

[6] Pursuant to s 53(2)(b) of the Act, I note the Agreement was made with the AMWU and that the Agreement covers it.

[7] Pursuant to s 201(2A) of the Act I note the Agreement covers the AMWU.

[8] The Agreement is approved and, in accordance with s 54 of the Act, will operate from 8 December 2025. The nominal expiry date of the Agreement is 1 December 2028.

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