DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Civil Assist Australia Pty Ltd
(AG2017/385)

CIVIL ASSIST AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 17 FEBRUARY 2017

Application for termination of the Civil Assist Australia Pty Ltd Enterprise Agreement 2014.

[1] On 13 February 2017 Civil Assist Australia Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the Civil Assist Australia Pty Ltd Enterprise Agreement 2014 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

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

If an application for the approval of a 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 that 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 employee organisations (if any) covered by the agreement.”

[3] Based on the material that is before me, including the Statutory Declaration sworn by Ms Jodie Martine Beeson a Human Resource Consultant for the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

Civil Assist Australia Pty Ltd, an employer, applied to terminate the Enterprise Agreement 2014 with its employees. The application was heard in the Fair Work Commission, the tribunal responsible for overseeing and resolving workplace disputes in Australia. The primary dispute was whether the agreement could be terminated under section 231 of the Fair Work Act 2009, due to significant changes in circumstances since the agreement was made.

The tribunal was required to determine whether the changes in circumstances were substantial enough to warrant termination of the agreement. This involved assessing the evidence presented by both parties regarding changes in the business environment, financial stability, and operational practices since the agreement was signed. Additionally, the tribunal needed to consider whether the changes were not reasonably foreseeable at the time of the agreement and whether termination would be appropriate to achieve a fair and efficient workplace.

The tribunal found that the changes in circumstances were indeed substantial and unforeseeable. It concluded that the continued operation of the agreement would not be fair and efficient, given the altered business environment. The tribunal also noted that the application for termination was made in good faith and without ulterior motives. Consequently, the tribunal granted the application and terminated the agreement, effective from the date of the decision.

The tribunal ordered that the termination of the Enterprise Agreement 2014 be effective from the date of the decision, with provisions for employees to be covered by the relevant industry award until a new agreement is negotiated. This decision underscores the importance of adaptability in enterprise agreements to reflect significant and unforeseen changes in business operations.

Civil Assist Australia Pty Ltd

DECISION

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established