Application by Boral Resources (Wa) Ltd
Citation: [2026] FWCA 1384
What happened
Boral Resources (WA) Ltd applied under section 185 of the Fair Work Act 2009 to approve the Boral Concrete (Western Australia) Enterprise Agreement 2026, a single-enterprise agreement covering workers in the cement and concrete products industry in Western Australia. The Transport Workers Union of Australia and the Australian Workers' Union were bargaining representatives and sought coverage under the agreement. the Commissioner considered the application in Perth, noting one clause that appeared potentially inconsistent with the National Employment Standards. Specifically, clause 8.1.2 allowed Boral to withhold money owed to an employee on termination if the employee failed to give adequate notice, without limiting what types of money could be withheld.
What was decided
the Commissioner approved the agreement on 27 May 2026. the Commissioner was satisfied that the requirements of sections 186, 187 and 188 of the Act had been met. While clause 8.1.2 raised a concern about potential deductions from NES entitlements such as notice pay, accrued annual leave, or long service leave, the Commissioner was satisfied that clause 1.5.5 of the agreement resolves this by providing that NES entitlements prevail wherever there is an inconsistency. Both unions were noted as covered by the agreement. It operates from 3 June 2026 and has a nominal expiry date of 28 February 2029.
What it means for employers
Employers should ensure enterprise agreement clauses dealing with deductions on termination clearly limit their scope to amounts permitted by law and do not cut across NES entitlements. Where an agreement contains a general NES-override clause, this can cure apparent inconsistencies, but it is better practice to draft individual clauses so they do not raise the issue at all. Boral's agreement was approved, but the Commissioner specifically flagged the deduction clause as a concern.
What it means for employees
Employees covered by this agreement should be aware that, despite clause 8.1.2 allowing Boral to withhold money if insufficient notice is given on resignation, the agreement's own terms require NES entitlements to prevail. This means entitlements such as accrued annual leave and long service leave payable on termination cannot lawfully be withheld under that clause. The agreement takes effect from 3 June 2026 and runs until 28 February 2029.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →