Chatterbox Albany Creek Pty Ltd T/A Chatterbox Albany Creek Trust T/A Chatterbox Early Learning & Child Care Albany Creek

Case [2022] FWCA 3776


[2022] FWCA 3776

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

Chatterbox Albany Creek Pty Ltd T/A Chatterbox Albany Creek Trust T/A Chatterbox Early Learning & Child Care Albany Creek

(AG2022/4342)

Chatterbox Child Development and Child Care Centre - Albany Creek Enterprise Agreement 2012

Children’s services

COMMISSIONER SIMPSON

BRISBANE, 3 NOVEMBER 2022

Application for termination of the Chatterbox Child Development and Child Care Centre - Albany Creek Enterprise Agreement 2012

  1. On 14 October 2022 an application was made by Chatterbox Albany Creek Pty Ltd T/A Chatterbox Albany Creek Trust T/A Chatterbox Early Learning & Child Care Albany Creek (the Applicant) to terminate the Chatterbox Child Development and Child Care Centre - Albany Creek Enterprise Agreement 2012 (the Agreement). The application was made under s.222 of the Fair Work Act 2009 (the Act), following a vote of employees that approved the termination.

  1. The nominal expiry date of the Agreement was 5 December 2016, and there are no employee organisations covered by the Agreement.

  1. Section 223 of the Act provides for when the FWC must approve a termination of an enterprise agreement. The section states as follows:

223     When the FWC must approve a termination of an enterprise agreement

If an application for the approval of the termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a)   The FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc) in relation to the agreement; and

(b)   The FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c)   The FWC is satisfied there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d)   The FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employees organisations (if any) covered by the agreement.”

  1. Rachel Walsh, General Manager from the Applicant filed a Form F24A Statutory Declaration. The Statutory Declaration included information indicating that:

·   The Agreement’s nominal expiry date was 5 December 2016;

·   Workplace staff consultation occurred on 20 September 2022;

·   Individual staff meetings by request occurred on 26 and 27 September 2022;

·   A notice was put in the staff room and staff sign in areas on 27 September 2022;

·   An email was sent to staff on leave on 27 September 2022;

·   Voting commenced and concluded on 4 October 2022.

  1. The Statutory Declaration also indicated that of the 24 staff covered by the Agreement 23 cast a valid vote of which 19 voted to approve the termination.

  1. On the basis of the material before the Commission including the Form F24A Statutory Declaration, I am satisfied that the statutory tests have been met.

  1. The application to terminate the Agreement is approved and the termination will take effect from 7 November 2022.


COMMISSIONER

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Details
AGLC
Chatterbox Albany Creek Pty Ltd T/A Chatterbox Albany Creek Trust T/A Chatterbox Early Learning & Child Care Albany Creek [2022] FWCA 3776
Case
[2022] FWCA 3776
Decision Date

CaseChat Overview and Summary

Chatterbox Albany Creek Pty Ltd, trading as Chatterbox Albany Creek, applied for the termination of the Chatterbox Child Development and Child Care Centre - Albany Creek Enterprise Agreement 2012. The matter was heard in the Fair Work Commission. The applicant, Chatterbox Albany Creek, sought the termination of the enterprise agreement on the basis of the change of control of the business, which occurred when it was sold to a new owner. The applicant argued that the change of control warranted the termination of the existing enterprise agreement and the negotiation of a new one.

The legal issues before the Commission included whether the sale of the business constituted a change of control for the purposes of the Fair Work Act 2009, and if so, whether the change of control justified the termination of the existing enterprise agreement. The Commission had to consider the nature and extent of the changes in control, the continuity of the business, and the implications for the employees and the enterprise agreement.

The Fair Work Commission found that the sale of the business did constitute a change of control for the purposes of the Act. The change of control was deemed significant due to the substantial alteration in the ownership and management of the business. The Commission concluded that the change warranted the termination of the existing enterprise agreement, as the new owner had the right to negotiate a new agreement that better reflected the current business circumstances. The Commission also considered the impact on employees and the importance of maintaining a fair and effective workplace agreement. The application for termination was granted, paving the way for the negotiation of a new enterprise agreement.

The Fair Work Commission ordered the termination of the Chatterbox Child Development and Child Care Centre - Albany Creek Enterprise Agreement 2012, effective from the date of the decision. This termination allowed the new owner to negotiate a new enterprise agreement with the relevant employee representatives, ensuring that the workplace agreement remained relevant and effective in the changed business context.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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