Application by Metcash Trading Limited
Citation: [2026] FWCA 1769
What happened
Metcash Trading Limited applied to the Fair Work Commission for approval of a new enterprise agreement, the Metcash Trading Limited Darwin Liquor Distribution and Warehouse Enterprise Agreement 2025. The Shop, Distributive and Allied Employees Association (SDA) was the bargaining representative. Several clauses in the agreement raised concerns regarding compliance with the National Employment Standards (NES) and the Better Off Overall Test (BOOT). These included provisions relating to shiftworker definitions, overtime work during stocktake, compassionate leave, a broader span of ordinary hours, casual overtime rates, and the absence of shiftwork penalties.
What was decided
The Fair Work Commission approved the enterprise agreement. However, approval was conditional on Metcash Trading Limited providing undertakings to address concerns raised about inconsistencies with the NES and BOOT requirements. These undertakings included defining 'shiftworker', reconciling pay for employees working early morning or late evening hours, clarifying casual overtime rates, and incorporating provisions for afternoon and night shift penalties. The agreement will operate from July 16, 2026, and expire on July 9, 2029.
What it means for employers
Employers should carefully review enterprise agreements to ensure compliance with the National Employment Standards (NES) and the Better Off Overall Test (BOOT). They need to consider potential impacts of clauses relating to notice periods, overtime, leave entitlements, and working hours. Providing undertakings to address concerns raised by bargaining representatives or the Fair Work Commission can be necessary for agreement approval.
What it means for employees
Employees should understand their rights under the National Employment Standards (NES) and how these are affected by enterprise agreements. If there are concerns about an agreement's impact on entitlements, employees can raise those concerns through their union or directly with their employer. The SDA will be covered by this agreement.
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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 →