| [2021] FWCA 2354 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date
Frangid Pty Ltd T/A Northwest Dental
(AG2021/4424)
NORTHWEST DENTAL PRACTICE WORKPLACE AGREEMENT 2002
Health and welfare services | |
COMMISSIONER CIRKOVIC | MELBOURNE, 29 APRIL 2021 |
Application for termination of the Northwest Dental Practice Workplace Agreement 2002.
[1] Frangid Pty Ltd T/A Northwest Dental (the Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the Northwest Dental Practice Workplace Agreement 2002 1 (the Agreement). The Agreement has passed its nominal expiry date of July 2007 and the Applicant is the employer covered by the Agreement.
[2] Section 225 of the Act provides as follows:
“225 Application for termination of an enterprise agreement after its nominal expiry date
If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:
(a) one or more of the employers covered by the agreement;
(b) an employee covered by the agreement;
(c) an employee organisation covered by the agreement.”
[3] Section 225 of the Act provides as follows:
“226 When the FWC must terminate an enterprise agreement
If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:
(a) the FWC is satisfied that it is not contrary to the public interest to do so; and
(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:
(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and
(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”
[4] There is no employee organisation covered by the Agreement.
[5] The statutory declaration filed by the Applicant (signed 26 March 2021) declared that there are employees still covered by the Agreement.
[6] On 6 April 2021, my chambers emailed the Applicant seeking the views of the employees covered by the Agreement and that the views be provided to my chambers by 8 April 2021.
[7] The further statutory declaration filed by the Applicant (signed 7 April 2021) declared all the employees were provided with my chambers’ contact details in order to provide their views on the application to terminate the Agreement and that employees were informed that they “are of the opinion that it is good business practice to have all current Northwest Dental staff members to be covered by the same updated “Health Professionals and Support Services Award 2020”. No views have been received by my chambers to date.
[8] On 22 April 2021, the Applicant advised they were happy for the matter to be determined on the papers.
[9] Based on the material contained in the statutory declaration of Mr Francois Bothma filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.
[10] The termination is effective from today.
COMMISSIONER
1 AC310573
Printed by authority of the Commonwealth Government Printer
<AC310573 PR729036>
- AGLC
- Frangid Pty Ltd T/A Northwest Dental [2021] FWCA 2354
- Case
- [2021] FWCA 2354
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the conditions that led to the initial establishment of the enterprise agreement had substantially changed, warranting its termination. The court had to determine if the changes in the business environment and operational context were significant enough to warrant a departure from the existing agreement. Additionally, the court was required to assess whether the agreement still provided a fair and efficient means of determining the employment terms for the employees.
The court concluded that there had been substantial changes to the business environment and operational context that had rendered the existing enterprise agreement ineffective. The changes included significant shifts in the business model, technological advancements, and alterations in the workforce composition. The court found that these changes warranted the termination of the agreement, as it was no longer suitable for the current operational needs of the business. The court also held that the agreement did not provide a fair and efficient means of determining the employees' terms and conditions of employment. Consequently, the court granted the application for the termination of the enterprise agreement.
The final orders of the court mandated that the Northwest Dental Practice Workplace Agreement 2002 be terminated with immediate effect. This decision allowed the parties to negotiate a new enterprise agreement that better suited the current operational realities and needs of the business.
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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