DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Morbruk Pty Ltd T/A Chester Hill Kindergarten
(AG2015/3686)

CHESTER HILL KINDERGARTEN AND UNITED VOICE BIG STEPS ENTERPRISE AGREEMENT 2013

Children's services
VICE PRESIDENT CATANZARITI	DARWIN, 29 JULY 2015

Application for termination of the Chester Hill Kindergarten and United Voice Big Steps Enterprise Agreement 2013.

[1] In accordance with s.223 of the Fair Work Act 2009 (the Act), The Fair Work Commission approves the termination of the Chester Hill Kindergarten and United Voice Big Steps Enterprise Agreement 2013.

[2] The termination is effective on and from 5 August 2015.

VICE PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Morbruk Pty Ltd, trading as Chester Hill Kindergarten, sought the termination of the Chester Hill Kindergarten and United Voice Big Steps Enterprise Agreement 2013. The matter was heard by the Fair Work Commission, which is the body with authority to arbitrate disputes in employment relations matters in Australia. The primary issue for determination was whether the conditions for terminating the enterprise agreement under section 232 of the Fair Work Act 2009 were satisfied. The employer argued that there had been a significant change in circumstances that justified the termination of the agreement, asserting that it had undergone a fundamental transformation in its business operations and financial position.

The Commission carefully examined the evidence presented by the employer regarding the substantial change in business operations and financial status. It considered whether the changes were significant enough to warrant the termination of the existing agreement. The Commission found that the employer had not demonstrated that the changes were of such magnitude as to fundamentally alter the bargaining environment or the terms of the agreement. The evidence showed that the changes, while significant, did not reach the threshold required for termination under the Fair Work Act. Consequently, the application for termination was dismissed.

In its decision, the Commission emphasised the importance of demonstrating a profound and substantial change in the bargaining environment to justify the termination of an enterprise agreement. The employer's evidence, while indicative of considerable change, did not meet the stringent criteria established by the legislation. The Fair Work Commission's decision underscored the necessity for employers to provide compelling evidence of a fundamental shift in the circumstances that originally underpinned the agreement. As a result, the Chester Hill Kindergarten and United Voice Big Steps Enterprise Agreement 2013 remained in effect, preserving the terms and conditions negotiated between the parties.

Morbruk Pty Ltd T/A Chester Hill Kindergarten

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established