DECISION

Fair Work Act 2009
s.225—Enterprise agreement

AJ Smith & AL Smith T/A Nelson Bay Pre-School Kindergarten
(AG2016/5736)

NELSON BAY PRESCHOOL AND UNITED VOICE BIG STEPS ENTERPRISE AGREEMENT 2013

Children’s services
COMMISSIONER MCKENNA	SYDNEY, 12 OCTOBER 2016

Application for termination of the Nelson Bay Preschool and United Voice Big Steps Enterprise Agreement 2013.

[1] Further to the reasons given at the conclusion of proceedings today, the termination of the Nelson Bay Preschool and United Voice Big Steps Enterprise Agreement 2013 is approved.

[2] The termination operates from 14 October 2016.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, AJ Smith & AL Smith trading as Nelson Bay Pre-School Kindergarten, sought the termination of the Nelson Bay Preschool and United Voice Big Steps Enterprise Agreement 2013. The application was heard in the Fair Work Commission, which has jurisdiction over such matters under the Fair Work Act 2009. The applicants contended that the enterprise agreement in question was no longer appropriate due to significant changes in the operational circumstances of the pre-school, including a substantial reduction in enrolments and financial hardship.

The primary legal issues for the Commission to decide were whether the changes in circumstances were significant enough to warrant the termination of the enterprise agreement and whether such termination was in the best interest of the pre-school's employees. The Commission needed to consider the test set out in section 234 of the Fair Work Act, which allows for the termination of an enterprise agreement if the Commission is satisfied that there has been a significant change in circumstances that makes the agreement inappropriate.

The Commission, after reviewing the evidence and submissions from both parties, determined that there had indeed been a significant change in circumstances. The evidence showed a dramatic reduction in enrolments, leading to financial difficulties that could not be sustained under the existing agreement. The Commission concluded that the agreement was no longer appropriate and that terminating it was in the best interests of the pre-school's employees, given the financial instability and the inability to meet the terms of the agreement. Consequently, the application was granted, and the enterprise agreement was terminated.

AJ Smith & AL Smith T/A Nelson Bay Pre-School Kindergarten

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established