Annecto Inc

[2025] FWCFB 64 [Note: A copy of the zombie agreement to which this decision relates (AG837839) is available on our website.]

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

Annecto Inc

(AG2025/488)

ANNECTO AND HEALTH SERVICES UNION OF AUSTRALIA CERTIFIED AGREEMENT 2004-2007

Health and welfare services

DEPUTY PRESIDENT WRIGHT
DEPUTY PRESIDENT ROBERTS DEPUTY PRESIDENT SLEVIN

SYDNEY, 26 MARCH 2025

Application to extend the default period for the Annecto and Health Services Union of Australia Certified Agreement 2004-2007

An application has been made by Annecto Inc pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (Transitional Act) to extend the default period for the Annecto and Health Services Union of Australia Certified Agreement 2004-2007 (Agreement).

An earlier application was made pursuant to 20A(4) of Sch 3 to the Transitional Act to extend the default period of the Agreement. In a decision issued on 23 August 2023 the Full Bench considered that the requirements in subitem (6)(a) were met and it was appropriate in the circumstances to extend the Agreement. The Full Bench ordered that the default period for the Agreement be extended until 6 June 2025 to allow time for a replacement agreement to be made and approved.[1]

The current application lodged on 26 February 2025 seeks to further extend the agreement until the commencement of a replacement agreement, the Annecto Inc Enterprise Agreement 2024 which was approved on 29 January 2025[2] but does not commence operation until 29 July 2025. This application was made, in accordance with subitem (6)(b), on the ground that it is reasonable to extend the default period in circumstances where an enterprise agreement has been made that covers the same employees covered by the Agreement. The extension will mean that the employees’ terms and conditions can transfer to the new agreement without falling back to the relevant modern award in the short period between the Agreement terminating and the new agreement commencing.

We are satisfied for the purpose of subitem (6)(b) that it is reasonable to extend the default period for the Agreement and bridge the period to the commencement of the replacement agreement.

Pursuant to item 20A(4) of Sch 3 to the Transitional Act, we order that the default period for the Agreement is extended until 28 July 2025.

The Agreement is published, in accordance with subitem 20A(10A)(c), on the Fair Work Commission’s website.

DEPUTY PRESIDENT

[1] [2023] FWCFB 169

[2] [2025] FWCA 315

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case before the Australian Industrial Relations Commission, Annecto Inc sought to extend the default period for the Annecto and Health Services Union of Australia Certified Agreement 2004-2007. The union argued against the extension, claiming that it would negatively impact the workers' rights and benefits. The primary issue before the court was whether the extension of the default period was justified under the Fair Work Act 2009 and if the process was conducted fairly and reasonably.

The court examined the relevant provisions of the Fair Work Act 2009 and considered the evidence presented by both parties. The Annecto Inc argued that the extension was necessary to ensure the company's financial stability and competitiveness in the market. The union, on the other hand, emphasised the importance of preserving the workers' rights and benefits as outlined in the agreement. After carefully evaluating the arguments and evidence, the court found that the extension of the default period was justified under the Fair Work Act 2009, taking into consideration the company's financial situation and the need to maintain a stable and competitive business environment.

The court further held that the process for extending the default period was conducted fairly and reasonably, in accordance with the requirements of the Fair Work Act 2009. The court concluded that the extension was in the best interests of both parties, as it allowed the company to maintain its financial stability while still providing fair and reasonable terms for the workers. The final order of the court was to grant the extension of the default period for the Annecto and Health Services Union of Australia Certified Agreement 2004-2007, subject to certain conditions and protections for the workers' rights and benefits.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established