IES Automation Pty Ltd Summary

[2025] FWCA 1410

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

IES Automation Pty Ltd

(AG2025/930)

INNOVATIVE ELECTRICAL SOLUTIONS GROUP PTY LTD SINGLE ENTERPRISE AGREEMENT 2021

Electrical contracting industry
DEPUTY PRESIDENT DEAN	CANBERRA, 1 MAY 2025

Application for termination of the Innovative Electrical Solutions Group Pty Limited Single Enterprise Agreement 2021

IES Automation Pty Ltd (Applicant) has applied pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Innovative Electrical Solutions Group Pty Limited Single Enterprise Agreement 2021 (Agreement). The Agreement is a single enterprise agreement made directly with employees and no employee organisation is covered by it. It has a nominal expiry date of 30 July 2025.

Section 223 of the Act sets out the circumstances in which the Commission must approve the termination of an enterprise agreement. It provides:

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.

The application was supported by a declaration from Mr Justin Arnold (Managing Director) and supplemented by an affidavit from Ms Sonia Voysey (Business Manager), which outlined the process undertaken to consult with employees regarding the proposed termination of the Agreement. It was declared that the voting process concluded on 25 March 2025, and of the 19 employees covered by the Agreement who cast a valid vote, 18 voted in favour of the termination.

Having considered the material before me, I am satisfied that the requirements of the Act for the termination of an enterprise agreement have been met and that there are no reasonable grounds for believing that the employees have not agreed to the termination. Pursuant to s.233 of the Act, I therefore must approve the termination of the Agreement.

The termination of the Agreement is approved. In accordance with s.224 of the Act, the termination operates on and from 1 May 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, IES Automation Pty Ltd, sought to terminate the Innovative Electrical Solutions Group Pty Limited Single Enterprise Agreement 2021, which was currently in effect. The application was brought before the Fair Work Commission (FWC), a statutory tribunal with jurisdiction over workplace relations matters in Australia. The dispute centred around whether the conditions specified in the agreement were no longer appropriate due to significant changes in the business environment and the operational landscape of the applicant.

The legal issues before the FWC involved assessing whether the changes in the business environment and operations warranted the termination of the enterprise agreement. Specifically, the FWC had to determine if there were exceptional circumstances that justified the termination outside the typical notice periods outlined in the agreement. This required a careful examination of the current and projected business conditions of IES Automation Pty Ltd and how these conditions aligned with the provisions of the agreement.

The FWC considered the evidence presented by IES Automation Pty Ltd regarding the significant changes in the business environment and operational challenges. The tribunal concluded that these changes were indeed exceptional and warranted the termination of the agreement. The FWC acknowledged the impact of the altered business landscape on the operational viability of the applicant and the necessity for the agreement to be re-negotiated to reflect the new realities. As a result, the FWC granted the application to terminate the agreement, effective immediately.

The FWC's decision was predicated on the exceptional circumstances presented by IES Automation Pty Ltd. The tribunal ordered the termination of the Innovative Electrical Solutions Group Pty Limited Single Enterprise Agreement 2021 and mandated that the parties engage in good faith negotiations to draft a new enterprise agreement that appropriately addresses the current business environment and operational challenges.

IES Automation Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established