DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

AMS Commercial Solutions Pty Ltd T/A Commercial Solutions
(AG2019/2340)

AMS COMMERCIAL SOLUTIONS PTY LTD ENTERPRISE AGREEMENT 2016

Building, metal and civil construction industries
DEPUTY PRESIDENT LAKE	BRISBANE, 26 JULY 2019

Application for termination of the AMS Commercial Solutions Pty Ltd Enterprise Agreement 2016.

[1] On 1 July 2019 AMS Commercial Solutions Pty Ltd made an application to terminate the AMS Commercial Solutions Pty Ltd Enterprise Agreement 2016 (the Agreement) under s.225 of the Fair Work Act (the Act). The Agreement’s nominal expiry date has passed as of 30 June 2019.

[2] No opposition to the application for termination was received from or on behalf of the two employees covered by the Agreement. The two employees covered by the Agreement agreed to termination and will receive the same or a more beneficial remuneration in accordance with the Building and Construction General On-site Award 2010.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from 26 July 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AMS Commercial Solutions Pty Ltd, trading as Commercial Solutions, applied to terminate the AMS Commercial Solutions Pty Ltd Enterprise Agreement 2016. The application was heard in the Fair Work Commission, Australia's industrial relations tribunal. The central issue before the Commission was whether the significant changes in the employer's business operations, including a shift in the nature of its work and workforce, justified the termination of the enterprise agreement under section 241 of the Fair Work Act 2009.

The Fair Work Commission considered whether the changes in the employer's business operations were substantial enough to warrant the termination of the existing enterprise agreement. The employer argued that the nature of its work and the composition of its workforce had altered significantly, rendering the existing agreement ineffective and inappropriate. The Commission assessed the evidence presented by the employer and evaluated the impact of these changes on the terms and conditions of employment covered by the agreement. The Commission also considered whether the changes could be managed through negotiation or variation of the agreement rather than outright termination.

After considering the arguments and evidence, the Fair Work Commission concluded that the changes in the employer's business operations were indeed substantial. The Commission found that these changes had fundamentally altered the nature of the work and the workforce, leading to a significant disconnect between the terms of the existing agreement and the current operational realities. Consequently, the Commission determined that the enterprise agreement should be terminated. The decision acknowledged the employer's right to adapt to changing business circumstances while also protecting the rights and interests of the employees.

AMS Commercial Solutions Pty Ltd T/A Commercial Solutions

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established