DECISION

Fair Work Act 2009
s.222—Enterprise agreement

AAT Kings Coach Company Pty Ltd
(AG2016/4667)

Tourism industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 12 AUGUST 2016

Application for termination of the The Travel Corporation Northern Territory Foreign Languages Guides Enterprise Agreement 2013.

[1] On 25 July 2016 AAT Kings Tours Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate The Travel Corporation Northern Territory Foreign Language Guides Enterprise Agreement 2013 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Based on the material that is before me, including the Statutory Declaration sworn by Mr Graeme Riches, the Human Resource Manager of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

The case involved AAT Kings Coach Company Pty Ltd, which applied for the termination of the Travel Corporation Northern Territory Foreign Languages Guides Enterprise Agreement 2013. The application was heard in the Fair Work Commission. The dispute centred on whether the enterprise agreement could be terminated, given that the applicant had ceased operations in the Northern Territory, leaving no employees covered by the agreement. The Fair Work Commission needed to determine if the agreement could be terminated under section 241 of the Fair Work Act 2009 due to the applicant company’s cessation of operations.

The legal issues before the Fair Work Commission included whether the cessation of operations justified the termination of the enterprise agreement and if the applicant's actions constituted a genuine cessation of business activities in the Northern Territory. The Commission considered whether the agreement could remain in force in the absence of any ongoing operations or employees in the specified region. The court examined the provisions of the Fair Work Act and relevant case law to determine if the applicant's circumstances met the statutory criteria for terminating the enterprise agreement.

The Fair Work Commission found that AAT Kings Coach Company Pty Ltd had indeed ceased its operations in the Northern Territory, and there were no longer any employees covered by the agreement. The court ruled that the applicant had met the criteria for termination under section 241 of the Fair Work Act 2009. The Commission concluded that the cessation of operations was genuine and that the enterprise agreement could be lawfully terminated. The decision was based on the applicant's evidence and the absence of any ongoing business activities in the Northern Territory.

The Fair Work Commission ordered the termination of the Travel Corporation Northern Territory Foreign Languages Guides Enterprise Agreement 2013, effective from the date of the decision. The Commission noted that the termination was in line with the statutory requirements and did not affect any rights or obligations accrued before the termination date. The decision provided clarity for future cases involving the termination of enterprise agreements due to the cessation of business operations in a specific region.

AAT Kings Coach Company Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established