DECISION

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

MRS SubZero Pty Ltd T/A MRS Services Group
(AG2017/6797)

BROBUILT EMPLOYEE ENTERPRISE AGREEMENT, 2011

Manufacturing and associated industries
COMMISSIONER RIORDAN	SYDNEY, 20 FEBRUARY 2018

Application for termination of the BroBuilt Employee Enterprise Agreement, 2011.

[1] On 27 December 2017, MRS SubZero Pty Ltd t/a MRS Services Group made an application to terminate the BroBuilt Employee Enterprise Agreement, 2011 (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 20 February 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties in this case were MRS SubZero Pty Ltd, trading as MRS Services Group, and BroBuilt Pty Ltd. The dispute was centred around an application to terminate the BroBuilt Employee Enterprise Agreement, 2011, and the subsequent proceedings were heard in the Fair Work Commission of Australia. MRS SubZero sought to terminate the enterprise agreement, arguing that it was no longer appropriate given the changing nature of the business and the need for increased flexibility in their operations.

The legal issues before the Commission were whether the enterprise agreement should be terminated on the grounds of hardship or significant change in the business circumstances of MRS SubZero. To address these issues, the Commission examined the evidence provided by both parties regarding the financial and operational conditions of MRS SubZero, and the extent to which the enterprise agreement impacted their ability to manage the business effectively.

The Commission found that while there had been significant changes in the business circumstances of MRS SubZero, these changes did not necessarily constitute hardship as defined by the Fair Work Act. Additionally, the Commission considered whether the agreement had been negotiated in good faith and whether it was fair and reasonable. The evidence indicated that the agreement was negotiated fairly and the terms were reasonable in the context at the time of its creation. Given these findings, the Commission ruled against the termination of the enterprise agreement, concluding that the changes in business circumstances did not warrant a departure from the agreed terms.

As a result of the Commission's decision, the application for termination was dismissed. The BroBuilt Employee Enterprise Agreement, 2011, remained in effect, and both parties were required to adhere to the terms and conditions outlined within the agreement. This decision highlighted the importance of demonstrating significant hardship or other specified grounds for terminating an enterprise agreement under the Fair Work Act.

MRS SubZero Pty Ltd T/A MRS Services Group

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established