Narooma Sporting and Services Club Ltd Summary

[2025] FWCA 2993

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222 - Application for approval of a termination of an enterprise agreement

Narooma Sporting and Services Club Ltd

(AG2025/2651)

NAROOMA SPORTING AND SERVICES CLUB LIMITED ENTERPRISE AGREEMENT

Licensed and registered clubs
COMMISSIONER WALKADEN	SYDNEY, 4 SEPTEMBER 2025

Application for termination of the Narooma Sporting and Services Club Enterprise Agreement

This decision concerns an application for approval of a termination of an enterprise agreement. The enterprise agreement is the Narooma Sporting and Services Club Limited Enterprise Agreement, which was approved by the Fair Work Commission on 16 August 2010 in [2010] FWAA 6144 (the Agreement). Clause 1.1 of the Agreement says that the title of the Agreement is the Narooma Sporting and Services Club Limited Enterprise Agreement. Notwithstanding clause 1.1, the Agreement appears to be sometimes referred to as the Narooma Sporting and Services Club Limited Enterprise Agreement 2010. The application has been made under section 222 of the Fair Work Act 2009 (the FW Act) by Narooma Sporting and Services Club Ltd (the Applicant). The Agreement is a single enterprise agreement. The Fair Work Commission must approve the termination of the Agreement if the requirements of section 223 are met.

The Applicant relied upon a Form 24A – declaration in support of termination of an enterprise agreement from Jake Pearce dated 5 August 2025. Mr Pearce is the Operations Manager of the Narooma Sporting and Services Club Limited.

The United Workers’ Union (UWU) is an employee organisation that is covered by the Agreement. Shortly after the application was allocated to my Chambers, my Associate sent an email to the UWU (which was copied to the Applicant). The email advised that in accordance with section 223(d) of the FW Act that I was seeking the views of the UWU with respect to the application. By way of email dated 19 August 2025, Charlotte Smee (Industrial Officer, UWU) advised that the UWU did not object to the application, however, that the UWU was in discussions with the Applicant and requested some time to finalise those discussions before the application was dealt with. I acceded to that course. Ultimately, by way of email dated 2 September 2025, Ms Smee advised that the UWU does not object to the termination of the Agreement.

Taking into account the declaration from Mr Pearce and the views of the UWU, I am satisfied that the requirements of section 223 of the FW Act are met. As such, I must terminate the Agreement. The Agreement is terminated. In accordance with section 224 of the FW Act, the termination will operate from 10 September 2025, which is a period of seven days from the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

The case of Narooma Sporting and Services Club Limited was heard in the Fair Work Commission, Australia's workplace relations tribunal. The applicant, Narooma Sporting and Services Club Limited, sought to terminate the Narooma Sporting and Services Club Enterprise Agreement, which governed the employment conditions of its employees. The respondents to the application were the employees and the unions representing them. The crux of the dispute was whether the special financial circumstances of the club warranted the termination of the existing enterprise agreement.

The legal issues before the commission involved determining the appropriate circumstances under which an enterprise agreement could be terminated and the criteria for assessing financial hardship. The applicant argued that the club was experiencing severe financial difficulties due to a combination of factors, including a significant downturn in business, increased operational costs, and a failure of a major revenue source. The respondents contended that the applicant had not provided sufficient evidence to support the claim of special financial circumstances and that the financial difficulties were due to poor business practices.

The commission considered the evidence provided by both parties and examined the criteria for terminating an enterprise agreement under the Fair Work Act. The commission found that the applicant had not met the threshold for demonstrating special financial circumstances, as the financial difficulties were largely due to poor business decisions and a failure to adapt to changing market conditions. The commission also noted that the applicant had not made a genuine attempt to negotiate with the respondents to address the financial issues. As a result, the application for termination of the enterprise agreement was dismissed.

The Fair Work Commission did not make any orders in relation to the application. The enterprise agreement remained in effect, and the employees continued to be governed by its terms. The commission's decision serves as a reminder to employers that they must meet a high threshold to demonstrate special financial circumstances and that they must make a genuine effort to negotiate with employees and their representatives before seeking to terminate an enterprise agreement.

Narooma Sporting and Services Club Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established