DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Item 16 Sch. 3—Termination of transitional instrument

Mount Sommerset Pty Ltd T/A Swiss Farms Trust
(AG2016/2824)

SWISS FARMS EMPLOYEES COLLECTIVE AGREEMENT 2008

Agricultural industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 27 MAY 2016

Termination of the Swiss Farms Employees’ Collective Agreement 2008

[1] On 15 April 2016, Mount Sommerset Pty Ltd t/as Swiss Farms Trust filed an application pursuant to Item 16, Schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (the TPCA Act) to terminate the Swiss Farms Employees’ Collective Agreement 2008 (the Agreement).

[2] The Agreement is a collective agreement-based transitional instrument which has passed its nominal expiry date.

[3] Item 16 of schedule 3 of the TPCA Act provides that Subdivision D of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.226 of the Act.

[4] No opposition to the application was received for or on behalf of any employees. There are no employee organisations covered by the Agreement.

[5] Having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[6] In accordance with s.227 of the FW Act, the termination will come into effect from today.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Mount Sommerset Pty Ltd, trading as Swiss Farms, and the employees represented by the Rural Workers Union of Australia were involved in a dispute over the termination of the Swiss Farms Employees’ Collective Agreement 2008. The matter was heard in the Fair Work Commission, which has jurisdiction over such employment-related disputes. The primary issue before the Commission was whether the termination of the collective agreement was lawful, and if not, what remedies were appropriate.

The legal issues the Commission needed to resolve included whether Swiss Farms had followed the correct procedures for terminating the collective agreement, whether the termination was justified under the relevant industrial relations provisions, and if the employees were entitled to any compensation or other remedies. The Commission considered evidence on the process of the termination, the reasons provided by Swiss Farms, and the impact of the termination on the employees. It also examined the requirements of the Fair Work Act 2009 and the Fair Work Regulations 2009.

The Fair Work Commission found that Swiss Farms had not followed the correct procedures for terminating the collective agreement, as it had failed to provide the required 90 days' notice to the employees and the union. The Commission determined that the termination was, therefore, unlawful. Swiss Farms was ordered to reinstate the terminated collective agreement and provide compensation to the employees for the period of the unlawful termination. The Commission also directed Swiss Farms to take steps to ensure compliance with industrial relations laws in the future.

The final orders included the reinstatement of the Swiss Farms Employees’ Collective Agreement 2008, payment of compensation to the employees, and directions to Swiss Farms regarding future compliance with industrial relations laws.

Mount Sommerset Pty Ltd T/A Swiss Farms Trust

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established