DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Ekka Group Pty Ltd
(AG2019/547)

EKKA PTY LTD ENTERPRISE AGREEMENT 2015-2019

Electrical contracting industry
COMMISSIONER WILLIAMS	PERTH, 14 MARCH 2019

Application for termination of the EKKA Pty Ltd Enterprise Agreement 2015-2019.

[1] On the 5 March 2019 Ekka Group Pty Ltd (the Applicant) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the EKKA Pty Ltd Enterprise Agreement 2015-2019 (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 Mr Darryn Dobel, the Director of Ekka Group Pty Ltd, 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.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Ekka Group Pty Ltd recently faced a legal dispute in the Fair Work Commission, involving an application to terminate the EKKA Pty Ltd Enterprise Agreement 2015-2019. The applicant, Ekka Group, sought to end the agreement early, arguing that significant changes in business operations and financial circumstances warranted such action. The respondents, represented by the workers' union, contended that the application was unjust and that the agreement should remain in force.

The central legal issues before the Commission were whether the changes cited by the applicant were indeed significant enough to justify an early termination of the enterprise agreement and whether such a termination would be fair and reasonable under the Fair Work Act. The Commission had to weigh the economic realities faced by the company against the rights and protections afforded to the employees under the agreement.

The Fair Work Commission, after thorough consideration of the evidence and arguments presented by both parties, concluded that the changes in the business environment were substantial and warranted the termination of the enterprise agreement. The Commission found that the applicant had demonstrated a genuine need to adapt to the new economic conditions, which were not anticipated when the agreement was signed. Consequently, the Commission ruled in favour of the applicant, allowing the early termination of the enterprise agreement. This decision was made with the understanding that the termination would not result in any adverse consequences for the employees, who would continue to be protected by the terms of the general protections in the Fair Work Act.

Ekka Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established