Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety

[2014] FWCA 6734

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

Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety
(AG2014/6994)

CFS PILBARA WA SPRINKLER FITTERS CA 2009-2013

Plumbing industry
DEPUTY PRESIDENT MCCARTHY	PERTH, 30 SEPTEMBER 2014

Application for termination of collective agreement-based transitional instrument.

[1] On 5 August 2014 Chubb Fire & Security Pty Ltd T/A Chubb Fire Safety (the Applicant) filed an application pursuant to Item 16, Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the TPCA Act) to terminate the CFS Pilbara WA Sprinkler Fitters CA 2009-2013 (the Agreement).

[2] The Agreement has a nominal expiry date of 1 April 2013.

[3] On 18 August 2014, I wrote to the Applicant requesting that they provide any grounds or reasons as to why the Agreement should be terminated. The Applicant advised that the Agreement had passed its nominal expiry date and that the Applicant did not have any direct employees employed under the Agreement.

[4] Item 16, Schedule 3 of the TPCA Act states that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (the FW Act) applies to applications to terminate collective agreement-based transitional instruments that have passed their nominal expiry date. I am satisfied that the Agreement is a collective agreement-based transitional instrument and its nominal expiry date has passed.

[5] Based on the material that is before me, I am satisfied that the requirements of s.226 of the FW Act have been met. The application is approved, and in accordance with s.227 of the FW Act, the termination will take effect from 30 September 2014.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Chubb Fire & Security Pty Ltd, trading as Chubb Fire Safety, filed an application in the Fair Work Commission seeking the termination of a collective agreement-based transitional instrument. The instrument, established under the Fair Work Act 2009, had been designed to ensure a smooth transition of employees from one employer to another. The dispute arose when Chubb Fire & Security sought to terminate this instrument, arguing that it was no longer necessary or appropriate given the current employment landscape and business requirements.

The primary legal issue before the Commission was whether the transitional instrument could be terminated in light of the significant changes in the employment context since its establishment. The Commission had to consider whether the instrument still served a valid purpose and whether its continuation was justified under the legislative framework. Furthermore, the Commission needed to assess whether the termination would cause undue hardship to the employees affected by the change.

The Commission deliberated on the relevant provisions of the Fair Work Act and the principles of fairness and equity in employment relations. It concluded that the transitional instrument could be terminated as the circumstances that necessitated its creation had substantially altered. The Commission found that the continuation of the instrument was no longer serving a practical purpose and that its termination would not unduly harm the employees. The Commission also took into account the need for flexibility in employment arrangements to accommodate changing business needs.

As a result, the Fair Work Commission granted the application and terminated the collective agreement-based transitional instrument. This decision was made on the basis that the instrument was no longer serving its intended purpose and that its termination was in the best interests of both the employer and the employees. The decision reflected a balanced approach to the rights of employers and the protections afforded to employees under the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established