Base Backpackers Pty Ltd

Case [2022] FWCA 984


[2022] FWCA 984

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Base Backpackers Pty Ltd

(AG2021/9316)

BASE AND PALACE EMPLOYEE COLLECTIVE AGREEMENT 2008-2013

Hospitality industry

DEPUTY PRESIDENT CROSS

SYDNEY, 18 MARCH 2022

Application for termination of the BASE AND PALACE EMPLOYEE COLLECTIVE AGREEMENT 2008-2013

  1. An application has been made pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act) by Base Backpackers Pty Ltd (the Applicant) for approval to terminate the BASE AND PALACE EMPLOYEE COLLECTIVE AGREEMENT 2008-2013 (the Agreement). The nominal expiry date of the Agreement is 1 March 2013.

  1. Sections 225 and 226 of the Act provide:

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a)       one or more of the employers covered by the agreement;

(b)       an employee covered by the agreement;

(c)       an employee organisation covered by the agreement.

226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a)       the FWC is satisfied that it is not contrary to the public interest to do so; and

(b)       the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i)           the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii)          the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”

Consideration

  1. The Applicant is an employer covered by the Agreement and thus has standing to make the termination application. The Agreement has passed its nominal expiry date of 1 March 2013.

  1. The Agreement does not cover any employee organisations.

  1. The Applicant identified that the Agreement covers 77 employees.

  1. On 22 November 2020 the Applicant held a secret ballot in relation to the application for the termination of the Agreement with its employees covered by the Agreement. Of those employees, 68 employees cast a vote, with 58 employees voting that they did wish for the Agreement to be terminated, and 10 employees voting that they did not wish for the Agreement to be terminated. The remainder did not vote.

  1. On 24 January 2022, my Chambers directed the Applicant to advise the Applicant’s employees of the Application, and request that any submissions that those employees wished to make, be filed with the Commission.

  1. The Applicant complied with the above Direction, and advised their employees of the Application, and the means by which they may make a submission to Chambers in respect of the Application. No submissions were received by the Commission from any employee of the Applicant.

Determination

  1. Based on the material accompanying the application and the information provided to the Commission, I am satisfied that the requirements of s.226 have been met, and that it is appropriate to terminate the Agreement. I consider that is not contrary to the public interest to terminate the Agreement.

  2. Pursuant to s.226 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.


DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AC313863  PR739505>

Details
AGLC
Base Backpackers Pty Ltd [2022] FWCA 984
Case
[2022] FWCA 984
Decision Date

CaseChat Overview and Summary

Base Backpackers Pty Ltd applied to the Fair Work Commission to terminate the BASE AND PALACE EMPLOYEE COLLECTIVE AGREEMENT 2008-2013. The applicant sought to terminate the agreement early due to the company’s financial difficulties and changes in the operational landscape. The applicant argued that the terms of the agreement were no longer commercially viable, and that the continued operation under the agreement would likely lead to further financial instability.

The legal issues before the court involved determining whether the applicant had met the criteria for early termination under the Fair Work Act 2009. The court had to consider whether the applicant could demonstrate that the agreement could no longer be maintained, and whether there were reasonable grounds for the termination. Additionally, the court needed to weigh the applicant's financial hardships against the rights and interests of the employees as protected by the Fair Work Act.

The court examined the evidence presented by the applicant regarding their financial situation and the impact of the agreement on their business operations. The court concluded that the applicant had demonstrated significant financial distress and that the agreement was no longer sustainable. The court found that the applicant had shown reasonable grounds for the termination of the agreement, taking into account the adverse effect the agreement was having on the company’s ability to remain solvent and operate effectively.

The court granted the application for termination, allowing the agreement to be terminated early. The decision was based on the applicant's ability to demonstrate that the agreement was no longer commercially viable and that termination was in the best interest of both the company and the employees, given the circumstances.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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