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austlii:cth/FWCA/2026/788
General information, not legal advice.
FWCA
2026-03-27
Original judgment source is linked above.
The attached document replaces the document previously issued with the above code on 27 March 2026.
Title of Enterprise Agreement inserted under Matter title.
s.185 - Enterprise agreement
Application for approval of the KNT Enterprise Agreement 2025
[1] An application has been made for approval of an enterprise agreement known as the KNT Enterprise Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by KLH Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.
[2] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 29 October 2025 and the Agreement was made on 20 February 2026. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.
[3] The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT. The Australian Workers' Union and the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union, who were bargaining agents, did not express a view as to whether the Agreement passes the BOOT.
[4] During the assessment process a referencing error was found in cl.12.7. The clause referred to clause 17 whereas the correct clause was clause 18. I confirmed that this was an error have made the correction in the published version using the powers in s.586 of the Act.
[5] Given the decision of the Federal Court Full Court in Construction, Forestry and Maritime Employees Union v Australian Industry Group [2025] FCAFC 187, the Agreement delegates' rights term needed to be addressed. Pursuant to s.205A of the Act, I have inserted into the Agreement the new delegates' rights clause from the Manufacturing and Associated Industries and Occupations Award 2020 which was inserted by the Full Bench decision in [2026] FWCFB 5.
[6] The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.
[7] Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.
[8] The Australian Workers' Union (AWU) and the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AWU and AMWU.
[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 April 2026. The nominal expiry date of the Agreement is 27 March 2030.
Printed by authority of the Commonwealth Government Printer