Cosmos Cosmetic Administration Pty Ltd T/A Cosmos Clinic

[2013] FWCA 547

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Cosmos Cosmetic Administration Pty Ltd T/A Cosmos Clinic
(AG2013/82)

And

Quintessential You Pty Ltd T/A Splash Clinic & The Beauty Plan
(AG2013/4423)

SPLASH CLINIC & COSMOS CLINIC ENTERPRISE BARGAINING AGREEMENT 2010

Hair and Beauty
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 23 JANUARY 2013

Application for approval of the termination of the Splash Clinic & Cosmos Clinic Enterprise Bargaining Agreement 2010.

[1] Pursuant to s.223 of the Fair Work Act 2009, the Splash Clinic & Cosmos Clinic Enterprise Bargaining Agreement 2010 is terminated.

[2] The termination will come into effect from 23 January 2013.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Cosmos Cosmetic Administration Pty Ltd, trading as Cosmos Clinic, applied to the Fair Work Commission for approval of the termination of the Splash Clinic & Cosmos Clinic Enterprise Bargaining Agreement 2010. The applicant argued that the enterprise was undergoing significant restructuring and the agreement was no longer appropriate for the current business model. The applicant claimed that the termination would allow for more flexible and cost-effective employment arrangements. The dispute was heard in the Fair Work Commission, which had jurisdiction to determine the matter under the Fair Work Act 2009.

The primary legal issues the Commission was required to address were whether the termination of the enterprise bargaining agreement was justified under section 172 of the Act and whether the termination would have a detrimental effect on the employees. The Commission needed to consider the evidence presented by both parties and determine whether the applicant had met the criteria for terminating the agreement. Additionally, the Commission had to assess whether appropriate transitional arrangements were in place to protect the employees' rights and entitlements during the transition period.

In its decision, the Commission found that the applicant had demonstrated that the termination of the agreement was justified due to the significant restructuring of the enterprise. The Commission was satisfied that the termination would not have a detrimental effect on the employees, as appropriate transitional arrangements were in place to protect their rights and entitlements. The Commission approved the termination of the agreement, allowing the applicant to implement its new business model.

The Commission ordered that the Splash Clinic & Cosmos Clinic Enterprise Bargaining Agreement 2010 be terminated as of the date of the decision. The order also included provisions for the implementation of the transitional arrangements, ensuring that the employees' rights and entitlements were protected during the transition period. The decision provides clarity for employers undergoing significant restructuring and the processes involved in terminating an enterprise bargaining agreement under the Fair Work Act 2009.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established