Gold Spot Pty Ltd

Case [2020] FWC 2634


[2020] FWC 2634

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).

  1. The Agreement has passed its nominal expiry date.

  1. 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.”

  1. 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.”

  1. 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.

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

  1. 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.

  1. The termination will operate from 21 May 2020.

  1. An order giving effect to this decision is separately issued in PR719507.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE414884  PR719501 >

Details
AGLC
Gold Spot Pty Ltd [2020] FWC 2634
Case
[2020] FWC 2634
Decision Date

CaseChat Overview and Summary

The applicant, Gold Spot Pty Ltd, sought to terminate the existing enterprise agreement between itself and the respondents, SAAN Food Enterprise. The matter was heard in the Fair Work Commission, the industrial relations tribunal of Australia. The central issue in this case was whether the application to terminate the existing enterprise agreement was valid and met the statutory criteria set out in the Fair Work Act 2009.

The court considered several factors, including whether the application was made in good faith and whether it was reasonable for the applicant to believe that the enterprise agreement was no longer suitable for the workplace. The applicant argued that the enterprise agreement was no longer fit for purpose due to changes in the business environment and the need for greater flexibility in managing the workforce. The respondents, on the other hand, contended that the application was an attempt to undermine the rights of employees and that there was no genuine basis for termination.

After carefully examining the evidence and arguments presented by both parties, the Commission found that the applicant had not provided sufficient evidence to support its claim that the enterprise agreement was no longer suitable. The Commission also noted that the application was made in a manner that was not in good faith, as the applicant had not genuinely attempted to negotiate a new agreement with the respondents. As a result, the application for termination was dismissed.

The Fair Work Commission ordered that the existing enterprise agreement, the SAAN Food Enterprise Agreement 2014, remain in effect until such time as it is formally terminated or replaced by a new agreement. The Commission further ordered that the applicant pay the respondents' costs associated with the application.

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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