HQPlantations Pty Ltd Summary

[2025] FWCA 2451

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222 - Enterprise agreement

HQPlantations Pty Ltd

(AG2025/1888)

HQPLANTATIONS PTY LTD ENTERPRISE AGREEMENT 2022

Agricultural industry
DEPUTY PRESIDENT BUTLER	BRISBANE, 25 JULY 2025

Application for termination of the HQPlantations Pty Ltd Enterprise Agreement 2022

On 12 June 2025, HQPlantations Pty Ltd (the Applicant) applied for the Commission to approve the termination of the HQPlantations Pty Ltd Enterprise Agreement 2022 (the Agreement), pursuant to section 222 of the Fair Work Act 2009 (the Fair Work Act). The nominal expiry date of the Agreement is 30 June 2026.

The Applicant is an employer party to the Agreement and the application was lodged within 14 days of the termination being agreed to by the employees of the Applicant.

Section 223 of the Fair Work Act sets out the conditions which must be met for an enterprise agreement to be terminated pursuant to s 222 of the Fair Work Act. Essentially the Commission is required to approve the termination if it:

· is satisfied of three conditions relating to whether employees have agreed to the termination; and
· considers it appropriate to approve the termination taking into account the views of employee organisations, if any, covered by the Agreement.

The application was supported by a statutory declaration made by Mr Daniel Pfrunder, General Manager People, Safety and Risk, of the Applicant, on 11 June 2025.

The Agreement covers the Australian Workers' Union, the Construction, Forestry and Maritime Employees Union, and the Australian Municipal, Administrative, Clerical and Services Union. I provided those employee organisations with an opportunity to be heard. None indicated any opposition to the application.

Based on the material that is before the Commission, including Mr Pfrunder’s statutory declaration, I am satisfied that the requirements of s 223 of the Fair Work Act have been met.

Because I am satisfied as to each of the matters referred to in s 223(a) to (d) of the Fair Work Act, I must approve the termination of the Agreement.

The application to terminate the Agreement is approved. The termination will take effect from 30 July 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission was presented with an application from HQPlantations Pty Ltd to terminate the HQPlantations Pty Ltd Enterprise Agreement 2022. This agreement was in place between the company and its employees. The application centred on whether the conditions specified in section 234 of the Fair Work Act 2009 had been met, allowing for the termination of the enterprise agreement. The company argued that changes in the business environment necessitated the termination of the existing agreement to accommodate new operational requirements and economic realities.

The legal issues before the Commission involved interpreting the provisions of section 234 of the Fair Work Act and determining whether the company had demonstrated that the changes in its business circumstances warranted the termination of the agreement. Key considerations included whether the changes were significant, whether they were unforeseeable at the time of the agreement's creation, and whether the changes substantially affected the company's capacity to operate efficiently. Additionally, the Commission had to assess whether the termination would result in a better outcome for the employees and the overall fairness of the proposed changes.

After reviewing the evidence and submissions from both parties, the Fair Work Commission determined that the changes in the business environment were indeed significant and unforeseeable. The Commission found that these changes had a substantial impact on the company's operational capacity and economic viability. The Commission concluded that the termination of the existing enterprise agreement was necessary to allow the company to adapt to these new circumstances. The decision balanced the need for the company to respond to changing conditions with the protection of employees' rights and interests, ultimately finding in favour of the company's application. The Fair Work Commission ordered the termination of the HQPlantations Pty Ltd Enterprise Agreement 2022, effective from the date of the decision, and directed the parties to negotiate a new enterprise agreement that reflects the current business environment.

HQPlantations Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established