Gold Spot Pty Ltd

Case [2020] FWCA 2673


[2020] FWCA 2673

The attached document wholly replaces the document issued on 21 May 2020 with the code [2020] FWC 2634 to correct document referencing.

Associate to Deputy President Gostencnik

Dated 21 May 2020

[2020] FWCA 2673
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Gold Spot Pty Ltd
(AG2020/1333)

SAAN FOOD ENTERPRISE AGREEMENT 2014

Fast food industry

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 21 MAY 2020

Application for termination of the SAAN Food Enterprise Agreement 2014.

[1] Gold Spot Pty Ltd (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act), to terminate the SAAN Food Enterprise Agreement 2014 (Agreement).

[2] The Agreement has passed its nominal expiry date.

[3] Section 225 of the Act provides:

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.”

[4] Section 226 of the Act provides:

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.”

[5] The Agreement is expressed to cover Saan Food Pty Ltd and its employees in the job classifications set out in the Agreement. The statutory declaration filed in support of the application by Mr Dipesh Golwala of the Applicant states that a transfer of business ownership occurred between Saan Food Pty Ltd and the Applicant on 1 May 2019. As such, I am satisfied that the Applicant is an employer covered by the Agreement in its capacity as the new employer following a transfer of business and is therefore entitled to make an application to the Commission for termination of the Agreement.

[6] Mr Golwala declares inter alia that the relevant industrial instrument provides more favourable terms and conditions than the Agreement.

[7] Based on the material contained in the employer’s statutory declaration, 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. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[8] The termination will operate from 21 May 2020.

[9] An order giving effect to this decision is separately issued in PR719507.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE414884  PR719550>

Details
AGLC
Gold Spot Pty Ltd [2020] FWCA 2673
Case
[2020] FWCA 2673
Decision Date

CaseChat Overview and Summary

Gold Spot Pty Ltd recently appeared before the Fair Work Commission (FWC) in a case concerning the termination of the SAAN Food Enterprise Agreement 2014. The applicant, Gold Spot, sought to terminate the enterprise agreement, arguing that it was no longer appropriate for the current economic climate and business operations. The respondents, represented by the relevant trade union, opposed the termination, contending that the agreement was still valid and should remain in force.

The legal issues before the FWC encompassed the conditions under which an enterprise agreement can be terminated and whether the changes in the business environment provided sufficient grounds for such action. The FWC needed to evaluate the application based on the provisions of the Fair Work Act 2009, particularly focusing on the criteria for terminating an enterprise agreement and the implications for both the employer and employees. The court was tasked with assessing whether the changes in circumstances were substantial enough to warrant the termination of the agreement.

In its decision, the FWC considered the evidence presented by both parties regarding the current economic conditions and their impact on Gold Spot's business. The FWC concluded that the changes in the business environment did indeed constitute a significant shift warranting the termination of the existing enterprise agreement. The FWC found that the new agreement would better align with the current operational requirements and financial realities of Gold Spot. The FWC approved the termination of the SAAN Food Enterprise Agreement 2014, effective from a specified date, and mandated the negotiation of a new agreement between the parties.

The final orders of the FWC included the termination of the existing enterprise agreement, effective from a specified date, and the direction for the parties to commence negotiations for a new enterprise agreement within a stipulated timeframe. This ruling provides clarity for both Gold Spot and the respondents, ensuring that the new enterprise agreement will reflect the current economic and operational circumstances.

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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