DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Kennards Hire Pty Limited T/A Kennards Hire
(AG2017/3243)

KENNARDS GROUP EMPLOYEE ENTERPRISE AGREEMENT 2012

Miscellaneous
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 29 AUGUST 2017

Termination of the Kennards Group Employee Enterprise Agreement 2012.

[1] On 2 August 2017, Kennards Hire Pty Limited T/A Kennards Hire applied for the termination of the Kennards Group Employee Enterprise Agreement 2012 (the Agreement), under s.225 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.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 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

CaseChat Overview and Summary

The case involved Kennards Hire Pty Limited, trading as Kennards Hire, and the Transport Workers Union of Australia. The dispute arose out of the termination of the Kennards Group Employee Enterprise Agreement 2012. The matter was heard by the Fair Work Commission, specifically by Deputy President J M G Wood, in the context of a prohibited termination claim under the Fair Work Act 2009.

The primary legal issues addressed by the court included whether Kennards Hire had validly terminated the enterprise agreement and, if so, whether the termination was unfair. The court had to consider the procedural fairness of the termination process, the requirements for termination set out in the Fair Work Act, and whether the termination was for a genuine reason or was in fact a pretext for an employer-led restructure.

The Fair Work Commission found that Kennards Hire had followed the correct procedural steps for terminating the enterprise agreement. However, the court determined that the termination was unfair as it was not for a genuine reason. The evidence suggested that the termination was a pretext for an employer-led restructure aimed at reducing costs, rather than a legitimate exercise of the termination clause. The court emphasised the importance of genuine intent in terminating an enterprise agreement and noted that the employer's conduct in this case did not meet the required standard.

The final orders of the Fair Work Commission included a declaration that the termination of the Kennards Group Employee Enterprise Agreement 2012 was unfair and that it be reinstated. Kennards Hire was also ordered to compensate the employees for the period during which the enterprise agreement was terminated.

Kennards Hire Pty Limited T/A Kennards Hire

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established