Application by Mambourin Enterprises Ltd
At a glance
- 47
- MA000100
What happened
Mambourin Enterprises Ltd sought an order from the Fair Work Commission to prevent the September 2011 Broadmeadows Disability Services Agreement (BDS Agreement) from covering employees transferring from BDS Support Services to Mambourin. The transfer involved 47 employees, including 24 permanent full-time and part-time staff. BDS was facing significant financial difficulties, with a $750,000 deficit in the last financial year, largely due to generous leave entitlements under the BDS Agreement. Mambourin, operating under the Social, Community, Home Care and Disability Services Award 2010 (SCHADS Award), aims for uniform employment conditions and operational efficiency.
What was decided
The Fair Work Commission will determine the matter on the papers without a hearing. The Commission has not yet issued its decision regarding whether the BDS Agreement or the SCHADS Award will cover the transferring employees. Mambourin argues that applying the BDS Agreement would create financial burdens and operational complexities due to more generous leave entitlements, increased administrative costs (estimated at $70,000 per month), and incompatibility with the National Disability Insurance Scheme funding model.
What it means for employers
Employers, particularly those in the disability services sector operating under the NDIS, should carefully consider the financial implications of enterprise agreements. Aligning employment conditions with awards like SCHADS can improve profitability and ensure compliance with funding models. Due diligence during mergers is crucial to avoid unsustainable legacy obligations.
What it means for employees
Employees transferring between organisations should be aware that their industrial instrument (award or agreement) may change. This could affect leave entitlements and other working conditions. Employees affected by this decision should seek information about the implications of either award or agreement.
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