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The Fair Work Commission has slammed an employer for allowing an "archaic" enterprise agreement, which denied employees penalty rates, to operate for more than two decades.

In March, an employee applied to the Commission under section 225 of the Fair Work Act to terminate the Staff Services Pty Ltd Certified Agreement 2000. Staff Services originally opposed the application, but later changed its stance.

The EA had commenced in December 1999 and expired in 2002. Then in early 2010, the FWC extended the nominal expiry date to the end of 2012. Under the EA, employees at various levels were each paid a single rate for all hours worked, including weekends and public holidays...