DECISION

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

Automated Innovation Pty Ltd
(AG2021/4717)

AUTOMATED INNOVATION PTY LTD SINGLE ENTERPRISE AGREEMENT 2017

Electrical contracting industry
COMMISSIONER RIORDAN	SYDNEY, 22 JUNE 2021

Application for termination of the Automated Innovation Pty Ltd Single Enterprise Agreement 2017.

[1] On 19 April 2021, Automated Innovation Pty Ltd (the Employer) made an application under s.225 of the Fair Work Act 2009 (the Act) to terminate the Automated Innovation Pty Ltd Single Enterprise Agreement 2017 (the Agreement). The Agreement has passed its nominal expiry date.

[2] The application was supported by a statutory declaration from Mr Nathan Gill, Director of the Employment. Mr Gill declared that the conditions of employment would revert to those contained in the Electrical, Electronic and Communications Contracting Award 2020.

[3] On 5 May 2021, my Associate wrote to the Employer noting Mr Gill’s statutory declaration and seeking the views of the employees that remained covered by the Agreement. The Employer was directed to provide to the relevant employees a copy of the email from my Chambers inviting them to provide their views to Chambers.

[4] On 12 May 2021, the Employer forwarded to my Chambers a copy of the email sent on 6 May 2021 to each of the relevant employees. Each of those employees were invited to provide their views on the termination of the Agreement by 21 May 2021.

[5] No opposition to the application was received for or on behalf of any employees. 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 Fair Work Act 2009, the Agreement is terminated.

[6] The termination will come into effect from 29 June 2021.

COMMISSIONER

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CaseChat Overview and Summary

Automated Innovation Pty Ltd, an employer, applied to the Fair Work Commission for the termination of a Single Enterprise Agreement (SEA) that had been in effect since 2017. The application was made on the basis that the company claimed the agreement had become obsolete due to significant changes in the industry, rendering the agreement unworkable and detrimental to the business. The Fair Work Commission was tasked with determining whether the agreement should be terminated, and if so, under what conditions.

The primary legal issue before the Commission was whether the changes in the industry and the company’s operational environment were sufficient to warrant the termination of the existing agreement. This involved assessing the criteria under the Fair Work Act 2009 for terminating an SEA. The Commission considered whether the agreement had indeed become unworkable, whether termination was in the interests of fairness, and whether there was a reasonable alternative to the agreement that could be implemented without significant detriment to the parties involved.

The Fair Work Commission found that the changes in the industry and the company's operational environment were substantial and had indeed made the existing agreement unworkable. The Commission determined that terminating the agreement was in the interests of fairness, given the changes in the working conditions and the need for a more adaptable agreement. The Commission ordered that the agreement be terminated, effective from a specified date, and that the terms and conditions of employment revert to the applicable modern award until a new agreement was negotiated. This decision balanced the interests of the employer in adapting to industry changes and the employees' right to fair terms of employment.

Automated Innovation Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established