| [2022] FWCA 2422 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Kalari Pty Ltd T/A Kalari Pty Ltd
(AG2022/2188)
Kalari Pty Ltd McKay Workshops Enterprise Agreement 2012-2015
| Manufacturing and associated industries | |
| COMMISSIONER HUNT | BRISBANE, 22 JULY 2022 |
Application for termination of the Kalari Pty Ltd McKay Workshops Enterprise Agreement 2012-2015
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 McKay Workshops Enterprise Agreement 2012-2015 (the Agreement). The Agreement has passed its nominal expiry date.
No employee organisations (unions) are covered by the Agreement.
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
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
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.
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.
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.
In accordance with s.226, I must terminate the Agreement. The application to terminate the Agreement is approved.
The termination will take effect from today, 22 July 2022.
COMMISSIONER
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- AGLC
- Kalari Pty Ltd T/A Kalari Pty Ltd [2022] FWCA 2422
- Case
- [2022] FWCA 2422
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission included whether the application met the statutory criteria for termination and whether the changes in business circumstances were significant enough to justify the termination of the agreement. The Commission had to consider the provisions of the Fair Work Act 2009, particularly sections 172 and 173, which outline the circumstances under which an enterprise agreement can be terminated. The Commission also needed to assess the impact of the changes on the workforce and the reasonableness of the employer's decision to terminate the agreement.
The Commission found that Kalari Pty Ltd had demonstrated significant changes in its business circumstances, including a substantial reduction in its workforce and financial difficulties, which justified the termination of the existing enterprise agreement. The Commission noted that the changes were both genuine and significant, and the company had made efforts to mitigate the impact on employees. The Commission concluded that the application met the statutory criteria for termination and that it was appropriate to terminate the agreement in the circumstances. The Commission also considered the impact of the termination on the employees and found that the company had taken reasonable steps to consult with and inform the affected employees.
The Fair Work Commission terminated the Kalari Pty Ltd McKay Workshops Enterprise Agreement 2012-2015. The decision acknowledged the genuine and significant changes in business circumstances and the company's efforts to minimise the impact on employees. The termination was effective from the date of the decision, and the parties were required to negotiate a new enterprise agreement or revert to the applicable awards.
Orders
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Background
Background to the litigation
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Evidence
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Decision
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Ratio Decidendi
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