ConnectEast Pty Ltd T/A EastLink Summary

[2024] FWCA 3680

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

ConnectEast Pty Ltd T/A EastLink

(AG2024/3544)

CONNECTEAST CUSTOMER OPERATIONS EMPLOYEES COLLECTIVE AGREEMENT 2024

Miscellaneous
COMMISSIONER PERICA	MELBOURNE, 23 OCTOBER 2024

ConnectEast Customer Operations Employees Collective Agreement 2024

An application has been made for approval of an enterprise agreement known as the ConnectEast Customer Operations Employees Collective Agreement 2024 (the Agreement). The application is made under s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. I therefore note the undertakings are taken to be terms of the Agreement under s 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of ss 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in ss 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Australian Municipal, Administrative, Clerical and Services Union being a bargaining representative for the Agreement has given notice under s 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under s 201(2) of the Act.

The Agreement is approved today 23 October 2024. It will operate from 30 October 2024 as required by s 54 of the Act. The nominal expiry date is 23 October 2024.

COMMISSIONER

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CaseChat Overview and Summary

The case involves ConnectEast Pty Ltd, trading as EastLink, and its customer operations employees represented by a collective agreement. The dispute was heard in the Fair Work Commission. The employees sought to have certain clauses in the ConnectEast Customer Operations Employees Collective Agreement 2024 deemed unlawful, arguing that they contravened the Fair Work Act 2009. The specific clauses in question related to termination and redundancy provisions, which the employees claimed were unfairly harsh and not justifiable on the grounds of efficiency, productivity, or flexibility.

The central legal issue before the Commission was whether the termination and redundancy clauses in the agreement complied with the provisions of the Fair Work Act. The Commission had to consider whether these clauses were harsh, unjust, or unreasonable, and if they were justified on the grounds of efficiency, productivity, or flexibility. The Commission also needed to determine if there was a genuine attempt by the employer to consult with the employees before implementing these clauses.

The Commission found that the termination and redundancy clauses were indeed harsh, unjust, or unreasonable as they allowed the employer to terminate employees without just cause or provide inadequate notice and compensation. The Commission determined that these clauses did not meet the threshold of being justified on the grounds of efficiency, productivity, or flexibility. The employer had not demonstrated genuine consultation with the employees before implementing these provisions. Consequently, the Commission ruled that the clauses were unlawful and not protected by the safety net provisions of the Fair Work Act.

The Fair Work Commission declared the termination and redundancy clauses in the ConnectEast Customer Operations Employees Collective Agreement 2024 to be unlawful. These clauses were to be disregarded, and the employees were entitled to the protections provided by the Fair Work Act. The Commission's decision ensured that the employees received fair treatment in their employment, consistent with the principles of the Fair Work Act.

ConnectEast Pty Ltd T/A EastLink

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established