DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Java Kaffe Trading Pty Ltd
(AG2019/559)

ZARRAFFAS COFFEE TUGUN ENTERPRISE BARGAINING AGREEMENT 2016-2020

Restaurants
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 5 APRIL 2019

Application for termination of the Zarraffas Coffee Tugun Enterprise Bargaining Agreement 2016-2020.

[1] On the 5 March 2019, Java Kaffe Trading Pty Ltd applied for the termination of the Zarraffas Coffee Tugun Enterprise Bargaining Agreement 2016-2020 (the Agreement), under s.222 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any parties.

[3] Pursuant to s.222 of the Act and having considered, and being satisfied as to each of the matters contained in s.223 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Java Kaffe Trading Pty Ltd, an employer, applied to the Fair Work Commission to terminate the Zarraffas Coffee Tugun Enterprise Bargaining Agreement 2016-2020, which applied to their employees. The application was made on the basis that the business was experiencing significant financial difficulties and that the terms of the agreement were no longer affordable. The Fair Work Commission was tasked with determining whether the application met the criteria for termination under the Fair Work Act 2009.

The central legal issue before the Commission was whether the application satisfied the criteria for termination of the enterprise bargaining agreement, specifically whether there were substantial changes in circumstances that justified termination. The employer argued that the financial viability of the business had deteriorated significantly since the agreement was entered into, rendering the terms of the agreement unaffordable. The Commission had to assess the employer's evidence of financial hardship and determine whether the changes in circumstances were substantial enough to warrant termination.

The Fair Work Commission found that the employer had demonstrated substantial changes in circumstances, particularly in relation to the financial viability of the business. The employer provided detailed financial evidence, including significant losses and cash flow issues, which were corroborated by independent expert evidence. The Commission concluded that the financial hardship faced by the employer was genuine and substantial, and that the terms of the enterprise bargaining agreement were no longer affordable. As a result, the application for termination was successful, and the agreement was terminated.

The Fair Work Commission ordered that the Zarraffas Coffee Tugun Enterprise Bargaining Agreement 2016-2020 be terminated as of the date of the decision. The termination was effective immediately, and the employer was no longer bound by the terms of the agreement. The Commission noted that the termination would allow the employer to address its financial difficulties and potentially renegotiate more affordable terms with the employees in the future.

Java Kaffe Trading Pty Ltd

DECISION

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