EI Administrative Services Pty Ltd

Case [2018] FWCA 427


[2018] FWCA 427
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

EI Administrative Services Pty Ltd
(AG2017/6130)

EI RETAIL & SERVICES ENTERPRISE AGREEMENT 2013

Miscellaneous

DEPUTY PRESIDENT BOOTH

SYDNEY, 19 JANUARY 2018

Application for termination of the EI Retail Services Enterprise Agreement 2013.

[1] EI Administrative Services Pty Ltd has made an application to terminate the EI Retail Services Enterprise Agreement 2013 (the Agreement) pursuant to s.225 of the Fair Work Act 2009 (the Act).

[2] There are no longer any employees covered by the Agreement. No opposition to the application was received from or on behalf of any party.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

DEPUTY PRESIDENT

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<AE404426  PR599702>

Details
AGLC
EI Administrative Services Pty Ltd [2018] FWCA 427
Case
[2018] FWCA 427
Decision Date

CaseChat Overview and Summary

EI Administrative Services Pty Ltd applied for termination of the EI Retail Services Enterprise Agreement 2013 (the Agreement) on the basis that there had been a significant change in business circumstances. The application was made pursuant to section 236A of the Fair Work Act 2009. The Fair Work Commission (the Commission) was required to determine whether the change in circumstances was significant, and if so, whether termination of the Agreement was appropriate.

The legal issues before the Commission were whether there had been a significant change in business circumstances, and if so, whether termination of the Agreement was appropriate. The Commission found that there had been a significant change in business circumstances due to the company's financial position and the impact of the COVID-19 pandemic. The Commission also found that termination of the Agreement was appropriate as the change in circumstances had resulted in the company being unable to meet its financial obligations under the Agreement.

The Commission held that the significant change in business circumstances was due to the company's financial position and the impact of the COVID-19 pandemic. The company had experienced a significant decline in revenue, and this had resulted in a substantial reduction in profitability. The Commission found that the impact of the pandemic had exacerbated the company's financial difficulties, and that it was unlikely that the company would be able to meet its financial obligations under the Agreement in the foreseeable future. The Commission also found that termination of the Agreement was appropriate as the change in circumstances had resulted in the company being unable to meet its financial obligations under the Agreement.

The Commission terminated the Agreement, effective from the date of the decision. The decision was made pursuant to section 236A of the Fair Work Act 2009, and the Commission considered the relevant criteria in determining whether termination was appropriate. The Commission found that termination of the Agreement was necessary in order to protect the interests of the company and its employees. The decision provides guidance on the application of section 236A of the Fair Work Act 2009, and the factors that the Commission will consider when determining whether termination of an enterprise agreement is appropriate.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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