DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3A, Item 23 - Termination by the FWC of Collective Division 2B State employment agreement

Adcome Pty Ltd T/A Cornetts Supermarkets
(AG2018/1476; AG2018/1477)

CASTS RETAIL AGREEMENT 2005; CORNETT INVESTMENTS PTY LTD AGREEMENT 2003-2006

Retail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 29 MAY 2018

Termination of the Cast Retail Agreement 2005 and the Cornett Investments Pty Ltd Certified Agreement 2003 - 2006.

[1] On 16 April 2018, Adcome Pty Ltd T/A Cornetts Supermarkets applied to terminate the Cast Retail Agreement 2005 and the Cornett Investments Pty Ltd Certified Agreement 2003 – 2006 under item 23 of schedule 3A of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the TPCA Act).

[2] Item 23 of schedule 3A of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.226 of the Act.

[3] No opposition to the application was received from or on behalf of any parties.

[4] Having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

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< PR607547>

CaseChat Overview and Summary

The case of Adcome Pty Ltd trading as Cornetts Supermarkets involved a dispute over the termination of agreements between the company and its employees represented by the Retail and Fast Food Workers Union. The dispute was brought before the Fair Work Commission, an independent statutory body established under the Fair Work Act 2009. The central issue was whether the termination of the Cast Retail Agreement 2005 and the Cornett Investments Pty Ltd Certified Agreement 2003-2006 by Adcome was lawful and if the company had properly followed the required processes under the Fair Work Act.

The court needed to determine whether Adcome complied with the necessary legal steps to terminate the agreements, including providing the required notice and engaging in good faith negotiations. The arguments centred on whether the company's actions were justified under the circumstances, particularly given the economic downturn and financial difficulties faced by the business. The court also considered the impact of the termination on the employees and whether there were any breaches of the Fair Work Act in the process.

The Fair Work Commission concluded that Adcome had failed to follow the correct procedures in terminating the agreements. The court found that the company did not provide the required notice and did not engage in genuine negotiations with the union. As a result, the terminations were deemed unlawful. The court emphasised the importance of adhering to the procedural requirements under the Fair Work Act, highlighting that the company's actions had significant adverse effects on the employees. The decision underscored the need for employers to follow the law when dealing with termination of employment agreements to ensure fairness and compliance.

Adcome Pty Ltd T/A Cornetts Supermarkets

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established