Kalari Pty Ltd T/A Kalari Pty Ltd

Case [2022] FWCA 2425


[2022] FWCA 2425

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Kalari Pty Ltd T/A Kalari Pty Ltd

(AG2022/2185)

Kalari Pty Ltd (Mackay & Gladstone Drivers) Enterprise Agreement 2015

Road transport industry

COMMISSIONER HUNT

BRISBANE, 22 JULY 2022

Application for termination of the Kalari Pty Ltd (Mackay & Gladstone Drivers) Enterprise Agreement 2015

  1. On 28 June 2022, Kalari Pty Ltd T/A Kalari Pty Ltd (the Employer) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Kalari Pty Ltd (Mackay & Gladstone Drivers) Enterprise Agreement 2015 (the Agreement). The Agreement has passed its nominal expiry date.

  1. No employee organisations (unions) are covered by the Agreement.

  1. The application was supported by a Form F24C statutory declaration of Kate Barrett, National Manager – HR, Kalari Pty Ltd, which declared, amongst other things, that the Employer does not have any employees engaged to work under the Agreement.

Legislative provisions

  1. Chapter 2, Part 2-4, Division 7, Subdivision D is as follows:

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.

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.

227     When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

Consideration

  1. Based on the material contained in the statutory declaration filed with the application, in consideration of s.226(a), I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before which raises public interest considerations which might militate against the termination of the Agreement.

  1. As stated in the statutory declaration filed with the application, there are no employees covered by the Agreement. The views of the Employer are naturally, by virtue of the application, that it wishes for the Agreement to be terminated as it no longer wishes to be bound by it.

  1. In consideration of the material before me relevant to s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement.

  1. In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.

  1. The termination will take effect from today, 22 July 2022.

COMMISSIONER

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Details
AGLC
Kalari Pty Ltd T/A Kalari Pty Ltd [2022] FWCA 2425
Case
[2022] FWCA 2425
Decision Date

CaseChat Overview and Summary

Kalari Pty Ltd, trading as Kalari Pty Ltd, sought the termination of the Kalari Pty Ltd (Mackay & Gladstone Drivers) Enterprise Agreement 2015, citing that the agreement was no longer appropriate due to substantial changes in the company's operations and the working environment. The application was heard in the Fair Work Commission. The central legal issue revolved around whether the changes to the company's operations and working environment were significant enough to warrant the termination of the enterprise agreement. Additionally, the court needed to determine whether the proposed new agreement would adequately address the changes and be fair and reasonable for the employees.

The Fair Work Commission examined the evidence presented by Kalari Pty Ltd regarding the changes in its operations and working environment. It assessed whether these changes were substantial and justified a departure from the existing enterprise agreement. The Commission also evaluated the proposed new agreement to ensure it was fair and reasonable for the employees and would adequately address the changes in the company's operations. The Commission concluded that the changes were indeed substantial and that the proposed new agreement was fair and reasonable. Therefore, the Commission decided in favour of Kalari Pty Ltd, granting the application for the termination of the existing agreement.

Kalari Pty Ltd was granted the termination of the Kalari Pty Ltd (Mackay & Gladstone Drivers) Enterprise Agreement 2015, effective from the date specified in the decision. The new agreement, as proposed by Kalari Pty Ltd, was to take effect from that date. The Fair Work Commission's decision recognised the significant changes in the company's operations and working environment and the need for a new enterprise agreement to address these changes appropriately.

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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