| [2025] FWCA 461 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date
Kingston Beach Educational Care Inc
(AG2024/4584)
KBEC UNITED VOICE BIG STEPS ENTERPRISE AGREEMENT 2013
| Melbourne | |
| COMMISSIONER WILSON | MELBOURNE, 5 FEBRUARY 2025 |
Application for termination of the KBEC United Voice Big Steps Enterprise Agreement 2013.
On 19 November 2024, Kingston Beach Educational Care Inc (the Applicant) made an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the KBEC United Voice Big Steps Enterprise Agreement 2013 (the Agreement) after its nominal expiry date.
The Agreement covers United Voice, now the United Workers' Union (UWU).
Section 225 of the Act states:
“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.”
The Applicant is an employer covered by the Agreement and thus has standing to make the termination application. The Agreement has passed its nominal expiry date, which was 30 June 2015.
Section 226 of the Act sets out when the Fair Work Commission (the Commission) must terminate an expired enterprise agreement where an application to terminate an agreement is made.
The material before the Commission includes the originating application and an accompanying statutory declaration filed by the employer in support of the application. The Applicant has also provided submissions and material in response to requests by me for further particulars.
On 28 November 2024, I wrote to the Applicant seeking further information as to why the application was made as the F24C stated that no employees were covered or likely to be covered by the Agreement, but the Applicant appeared to be continuing to operate.
On 6 December 2024, I received a response from the Applicant. I did not consider the response adequate to address my questions and listed the matter for hearing on 11 December 2024. I also provided the application and additional material received from the Applicant to the UWU.
On 13 December 2024, I received further material from the Applicant in support of their application and in response to matters raised during the hearing. These materials were also provided to the UWU. On the same day, I directed the Applicant to serve the Form F24B and the revised Form F24C material on each employee presently covered by the Agreement and to invite the provision of each employees’ views on the s.225 application within 7 calendar days.
No employee presently covered by the Agreement provided any views on the termination application.
On 17 December 2024, the Applicant wrote to my Chambers and the UWU with further information regarding employees covered by the Agreement. This included the current classification and rate of pay of each employee, payroll evidence for each classification listed in the spreadsheet and a statutory declaration from the Applicant confirming their compliance with my previous directions.
On 15 January 2025, I advised the parties that I would be prepared to terminate the Agreement if the Applicant provided an undertaking that can be placed on the Commission’s file in terms I supplied in the correspondence. The Applicant and the UWU were invited to provide responses to my preliminary view that the Agreement may be terminated and on the proposed undertaking.
The UWU confirmed their support for the proposed undertaking by reply email on the same day.
On 30 January 2025 the Applicant provided the undertaking at Annexure A.
I am satisfied that each of the requirements of s.226 of the Act have been met. As a result, I must approve the termination of the Agreement.
The Agreement is terminated and, pursuant to s.227 of the Act, the termination will come into effect from 6 February 2025.
COMMISSIONER
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Annexure A
- AGLC
- Kingston Beach Educational Care Inc [2025] FWCA 461
- Case
- [2025] FWCA 461
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission were whether the changes in the business circumstances were fundamental and whether those changes rendered the agreement redundant. The Commission examined the nature of the changes, the impact of those changes on the workforce, and whether the changes were unforeseen at the time the agreement was made. The Commission also considered whether there were alternative methods of addressing the changes that did not involve terminating the agreement.
In reaching its decision, the Commission found that the changes in the business circumstances were significant but not fundamental. The Commission held that the changes were foreseeable and the agreement contained provisions that enabled it to adapt to the changes. The Commission also found that the applicant had not demonstrated that the agreement had become redundant or that there were no alternative methods of addressing the changes. The application was dismissed, and the agreement remained in force.
The Commission ordered that the application for termination of the enterprise agreement be dismissed and that the agreement remain in force. The Commission also ordered that the parties commence negotiations in good faith to address the changes in the business circumstances and their impact on the workforce. The Commission emphasised the importance of the parties working together to find a solution that was fair and reasonable for all parties.
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
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Ratio Decidendi
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