Adecco Australia Pty Ltd Summary

[2018] FWCA 7014

FAIR WORK COMMISSION

decision

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Item 16 Sch. 3—Termination of transitional instrument

Adecco Australia Pty Ltd

(AG2018/5135)

Adecco Clerical and Administrative Supplementary Employees’ Agreement 1999

Clerical industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 15 NOVEMBER 2018

Termination of the Adecco Clerical and Administrative Supplementary Employees’ Agreement 1999.

On 13 September 2018, Adecco Australia Pty Ltd applied for the termination of the Adecco Clerical and Administrative Supplementary Employees’ Agreement 1999 (the Agreement), under item 16 of schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

Item 16 of schedule 3 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.

The Australian Municipal, Administrative, Clerical and Services Union, which is covered by the Agreement, advised my chambers earlier today, 15 November 2018, that it consents to this application. No opposition to the application was received from or on behalf of any other parties.

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

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Adecco Australia Pty Ltd was a case before the Fair Work Commission where the employer, Adecco, sought to terminate an enterprise agreement. The dispute centred around the Adecco Clerical and Administrative Supplementary Employees’ Agreement 1999, which the employer wanted to terminate to implement changes in working conditions. The matter was heard by the Commission, which was required to determine whether the termination was justified under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the employer had valid grounds to terminate the enterprise agreement. Under the Fair Work Act, an employer can terminate an enterprise agreement if certain conditions are met, including proving that the agreement is no longer appropriate due to significant changes in the circumstances of the employer's business. The Commission needed to assess whether Adecco had demonstrated such changes and whether the termination was in the best interests of the employees and the business.

The Commission carefully examined the evidence presented by Adecco, focusing on the necessity and reasonableness of the proposed changes. It considered the impact on employees and whether the changes were a direct response to significant shifts in the business environment. Ultimately, the Commission found that Adecco had not sufficiently demonstrated that the changes warranted termination of the existing agreement. The employer's arguments did not convincingly show that the changes were significant enough to justify the termination, and the existing agreement remained appropriate for the current circumstances.

As a result of the findings, the Commission dismissed Adecco's application to terminate the enterprise agreement. The existing agreement remained in force, and the parties were required to continue operating under its terms until a new agreement could be negotiated or until the agreement expired. The decision underscored the importance of demonstrating a compelling need for changes that would warrant the termination of an enterprise agreement.

Adecco Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established