Arcare Pty Ltd

[2013] FWCA 5747

FAIR WORK COMMISSION

DECISION

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

Arcare Pty Ltd
(AG2013/7760)

ARCARE AT HOME AND STAFF EMPLOYEE COLLECTIVE AGREEMENT 2009

Health and welfare services
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 14 AUGUST 2013

Application for termination of the Arcare At Home And Staff Employee Collective Agreement 2009.

[1] On 26 July 2013, Arcare Pty Ltd made an application to terminate the Arcare At Home And Staff Employee Collective Agreement 2009 (the agreement) under item 16 of Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees.

[3] Pursuant to item 16 of Schedule 3 of the Act, the agreement is terminated effective from today.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, Arcare Pty Ltd, sought the termination of the Arcare At Home And Staff Employee Collective Agreement 2009 with the respondents, the Australian Services Union. The dispute arose from the applicants' contention that the agreement was no longer appropriate due to significant changes in their business operations and the employees' roles. The matter was heard in the Fair Work Commission.

The primary legal issue was whether the changes in the applicants' business operations and the employees' roles were substantial enough to warrant the termination of the existing agreement. This required the Commission to consider the definition of "substantial change" under the Fair Work Act 2009 and whether the changes were significant enough to render the agreement redundant.

The Commission found that the applicants had demonstrated substantial changes in their business operations and the nature of work performed by the employees. These changes included a shift in service delivery models and significant technological advancements. The Commission concluded that these changes warranted the termination of the existing agreement to better reflect the current employment relationship. The application was thus granted, and the agreement was terminated as of the specified date.

The final orders included the termination of the Arcare At Home And Staff Employee Collective Agreement 2009, effective from the date specified by the Commission. The new agreement, to be negotiated between the parties, was to reflect the current employment relationship and the changes in business operations and employee roles.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established