Montessori School Ltd Summary

[2024] FWCA 3988

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.218A - application to vary an agreement to correct or amend errors, defects or irregularities

Montessori School Ltd

(AG2024/4429)

MONTESSORI SCHOOL LTD ENTERPRISE AGREEMENT 2024

Educational services
DEPUTY PRESIDENT DEAN	CANBERRA, 15 NOVEMBER 2024

Application for variation of the Montessori School Ltd Enterprise Agreement 2024.

Montessori School Ltd (Applicant) has made an application pursuant to s.218A of the Fair Work Act 2009 (the Act) to vary the Montessori School Ltd Enterprise Agreement 2024 (the Agreement) to correct or amend an error, defect or irregularity in the Agreement.

The Applicant seeks to vary the rates of pay for Teachers in Schedule 1 of the Agreement, which the Applicant submits do not include the pay increases that were agreed to pay with effect from 1 May 2024 due to an administrative error.

The Agreement was approved by the Commission on 25 October 2024 and commenced operation on 1 November 2024. The Independent Education Union of Australia is covered by the Agreement and supports the variation application.

I am satisfied that the error in the Agreement sought to be amended is an obvious error. I am satisfied the variation should be made, and that it is appropriate to do so pursuant to s.218A of the Act.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision. The variation operates from the date the Agreement commenced, being 1 November 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Montessori School Ltd, sought a variation to the existing enterprise agreement with its employees. The dispute was heard in the Fair Work Commission. The primary issue before the Commission was whether the proposed changes to the enterprise agreement were necessary and appropriate to address the school's financial difficulties and operational changes.

The Commission considered the evidence presented by the school regarding its financial position, the impact of the COVID-19 pandemic, and the necessity of the proposed changes to maintain the school's viability. The applicant argued that the changes, which included alterations to employee hours, wages, and conditions, were essential to address the school's financial challenges and ensure its future sustainability. The employees, represented by their union, contested the necessity and fairness of the proposed changes, asserting that they would result in significant adverse impacts on their working conditions and financial security.

After reviewing the evidence and submissions, the Commission concluded that the proposed changes were necessary to address the school's financial difficulties and operational changes. The Commission found that the applicant had demonstrated a genuine need for the changes and that they were reasonable in the circumstances. The Commission also considered the potential impact on employees and determined that the changes were fair and reasonable, taking into account the school's financial position and the need to maintain its viability. The application for variation of the enterprise agreement was therefore approved.

The Commission ordered that the Montessori School Ltd Enterprise Agreement 2024 be varied as per the terms outlined in the application. The variation included changes to employee hours, wages, and conditions, as proposed by the applicant. The changes were to take effect from the date of the decision and were to be communicated to all affected employees. The decision was binding on all parties and was to be implemented in accordance with the terms of the varied agreement.

Montessori School Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established