This extract from a judgement of the Federal Court explains how enterprise agreements are interpreted.

“Relevant principles as to interpretation of enterprise agreements

4    The relevant principles were recently summarised in Corporate Air Charter Pty Ltd v Australian Federation of Air Pilots [2025] FCAFC 45 at [9]-[12] (Logan, Dowling and McDonald JJ), cited with approval in Avard v Australian Capital Territory [2025] FCAFC 72 at [45] (Charlesworth, Stellios and Longbottom JJ) where the issues concerned the construction of an enterprise agreement.

5    Neither party contended that there were surrounding circumstances that might bear upon the proper construction of the Agreement. Hitachi submitted that it was appropriate to have regard to the history of waiting time penalty provisions in the Australian industrial law setting when construing that aspect of the Agreement.”

Hitachi Rail STS Australia Pty Ltd v Schoof [2026] FCA 343 per COLVIN delivered 27 Mar 2026 per Colvin J