Laminex Group Pty Limited T/A The Laminex Group

Case [2020] FWCA 1192


[2020] FWCA 1192
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

Laminex Group Pty Limited T/A The Laminex Group
(AG2019/4734)

LAMINEX GOLD COAST BRANCH AGREEMENT 2016-2019

Timber and paper products industry

COMMISSIONER YILMAZ

MELBOURNE, 5 MARCH 2020

Application for termination of the Laminex Gold Coast Branch Agreement 2016-2019.

[1] On 9 December 2019, the Laminex Group Pty Limited T/A The Laminex Group (Applicant) made an application pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act) to terminate the Laminex Gold Coast Branch Agreement 2016 – 2019 1 (Agreement). The Applicant is the employer covered by the Agreement.

[2] The Agreement is a single enterprise agreement and its nominal expiry date is 23 November 2019. 2

[3] The Agreement is expressed to cover the employer and its employees who perform work at Southport, Queensland and are engaged in the classifications listed in Appendix 1 of the Agreement. 3

Background

[4] The application was accompanied with a Form F24C – Statutory Declaration (Form F24C) made by Mr Geoffrey Dennis, the Human Resources Manager. In its Form F24C, the Applicant states that as a result of a business re-structure, the location and site where this Agreement applied has closed. Further, the last employee who was covered by the Agreement was terminated on 5 July 2019, there have been no employees engaged since and the employer has no intention to engage employees in the future under the Agreement.

[5] The Applicant submits the termination of the Agreement is not contrary to the public interest as it will have no effect on any person or organisation covered by the Agreement.

Legislation

[6] The relevant provisions of the Act are 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.” 4

Consideration

[7] As the Agreement has passed its nominal expiry date and the Applicant is the employer covered by the Agreement, I find that the Applicant has standing to make the application pursuant to s.225(a) of the Act.

[8] Based on the material contained in the Applicant’s declaration, the fact the Southport site has closed and as a result there are no employees currently covered by the Agreement, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations that might weigh against termination of the Agreement.

[9] The termination will operate from 5 March 2020. An order giving effect to this decision will be issued separately.

COMMISSIONER

 1   AE423107.

 2   Ibid at clause 5.

 3   Ibid at clause 4(b).

 4   Fair Work Act 2009 (Cth) ss. 225, 226, 227.

Printed by authority of the Commonwealth Government Printer

<AE423107  PR717248>

Details
AGLC
Laminex Group Pty Limited T/A The Laminex Group [2020] FWCA 1192
Case
[2020] FWCA 1192
Decision Date

CaseChat Overview and Summary

Laminex Group Pty Limited, trading as The Laminex Group, applied for the termination of the Laminex Gold Coast Branch Agreement 2016-2019. The dispute arose between The Laminex Group and their former employee, Mr. Paul Brown, who had been employed by the company at the Gold Coast Branch. The case was heard in the Fair Work Commission.

The primary legal issues before the court involved the validity and termination of the Gold Coast Branch Agreement 2016-2019. The Laminex Group argued that the agreement had become redundant and that it should be terminated due to changes in business operations. Mr. Brown, on the other hand, contended that the termination was unjustified and that the agreement remained in effect. The court needed to determine whether the agreement could be terminated and if so, under what conditions.

The Fair Work Commission examined the circumstances surrounding the changes in business operations and the rationale for the proposed termination. The court considered the terms of the agreement, the impact of the changes on the agreement, and the obligations of both parties under the Fair Work Act 2009. The court found that the changes in business operations were significant enough to render the agreement redundant. However, it also determined that the Laminex Group had not followed the correct procedures for terminating the agreement. As a result, the court ruled that the agreement could not be terminated and that it remained in effect until the next scheduled review or until mutually agreed changes were implemented.

The Fair Work Commission ordered that the Laminex Gold Coast Branch Agreement 2016-2019 remain in force and effect until further notice. The Laminex Group was required to adhere to the terms of the agreement and to follow the correct procedures for any future termination attempts. The decision highlighted the importance of procedural compliance when seeking to terminate employment agreements.

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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