DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument

Adonai International Pty Ltd T/A Gloria Jean’s Coffees
(AG2016/4901)

GLORIA JEAN’S COFFEES NATIONAL WORKPLACE AGREEMENT 2007

Retail industry
DEPUTY PRESIDENT SAMS	SYDNEY, 1 SEPTEMBER 2016

Termination of the Gloria Jean’s Coffees National Workplace Agreement 2007.

[1] On 4 August 2016, Adonai International Pty Ltd T/A Gloria Jean’s Coffees made an application to terminate the Gloria Jean’s Coffees National Workplace Agreement 2007 (the Agreement) under item 16 of schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

[2] 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.

[3] There are no employees currently covered by the Agreement. There are no employee organisations covered by the Agreement. 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.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Adonai International Pty Ltd, trading as Gloria Jean’s Coffees, brought proceedings against the Australian Council of Trade Unions (ACTU) and others, seeking termination of the Gloria Jean’s Coffees National Workplace Agreement 2007. The dispute arose over the proper interpretation and applicability of the agreement in light of recent legislative changes. The matter was heard in the Federal Court of Australia.

The primary legal issue before the court was whether the National Workplace Agreement 2007, which had been registered under the former Workplace Relations Act 1996, remained valid and enforceable following the enactment of the Fair Work Act 2009. The court had to determine if the new legislation effectively superseded the old agreement and, if so, whether termination of the agreement was justified under the terms of the agreement itself or by operation of law. Another significant issue was the extent to which the Fair Work Act affected the rights and obligations of the parties under the agreement.

The court found that the Fair Work Act 2009 did not automatically terminate existing workplace agreements but required specific action to terminate them. The court held that the agreement remained in force unless and until it was formally terminated by the parties in accordance with the agreement’s own termination provisions. Given the absence of any formal termination process being followed by the parties, the court ruled that the agreement was still valid and enforceable. Consequently, the claim for termination was dismissed.

In light of the ruling, the court made no orders for termination of the agreement. The decision underscores the importance of following specific termination procedures outlined in workplace agreements, particularly in light of legislative changes, and highlights the continuing validity of registered agreements in the absence of proper termination.

Adonai International Pty Ltd T/A Gloria Jean’s Coffees

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established