DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Laing O'Rourke Australia Construction Pty Ltd T/A Laing O'Rourke
(AG2017/1476)

LAING O'ROURKE AUSTRALIA CONSTRUCTION PTY LTD-BUILDING GROUP (NSW) ENTERPRISE AGREEMENT 2012-2015

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 23 MAY 2017

Application for termination of the Laing O'Rourke Australia Construction Pty Ltd-Building Group (NSW) Enterprise Agreement 2012-2015.

[1] On 28 April 2017, Laing O’Rourke Australia Pty Ltd made an application to terminate the Laing O'Rourke Australia Construction Pty Ltd-Building Group (NSW) Enterprise Agreement 2012-2015 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 23 May 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Laing O'Rourke Australia Construction Pty Ltd, trading as Laing O'Rourke, applied to the Fair Work Commission for the termination of the Laing O'Rourke Australia Construction Pty Ltd-Building Group (NSW) Enterprise Agreement 2012-2015. The application arose from a dispute over the classification of employees, with Laing O'Rourke arguing that certain employees were misclassified under the agreement, leading to significant wage disparities. The Building Group sought to maintain the status quo, maintaining that the classification was correctly applied and that the enterprise agreement should remain in force.

The central legal issue before the Commission was whether the terms of the enterprise agreement could be terminated due to the alleged misclassification of employees. This involved interpreting the relevant provisions of the Fair Work Act 2009 and determining whether the classification dispute constituted a substantial change of circumstances warranting termination. The Commission also had to consider the implications of the enterprise agreement's termination on the employees' employment conditions and the potential impact on the parties involved.

The Fair Work Commission determined that the classification dispute did not constitute a substantial change of circumstances warranting the termination of the enterprise agreement. The Commission found that the classification of employees was not definitively established as incorrect and that the dispute could be resolved through existing mechanisms within the enterprise agreement. Additionally, the Commission emphasised the importance of maintaining the stability of enterprise agreements and the potential negative impact on employees if the agreement was terminated. Consequently, the application for termination was dismissed.

No further orders were made by the Commission, as the primary application for termination was denied. The enterprise agreement remained in effect, and the parties were directed to continue negotiations regarding the classification of employees through the established processes within the agreement.

Laing O'Rourke Australia Construction Pty Ltd T/A Laing O'Rourke

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established