| [2022] FWCA 1554 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date
Navitas English Services Pty Ltd
(AG2022/1377)
NAVITAS ENGLISH SERVICES DARWIN TEACHERS' ENTERPRISE AGREEMENT 2017 - 2019
| Educational services | |
| COMMISSIONER RIORDAN | SYDNEY, 10 MAY 2022 |
Application for termination of the Navitas English Services Darwin Teachers' Enterprise Agreement 2017 – 2019.
Navitas English Services Pty Ltd (the Applicant) has applied, pursuant to s.225 of the Fair work Act 2009 (the Act) to terminate the Navitas English Services Darwin Teachers' Enterprise Agreement 2017 – 2019 (the Agreement).
The Agreement has passed its nominal expiry date.
There are no employee organisations covered by the Agreement.
Section 225 of the Act provides:
“225 Application for termination of an enterprise agreement after its nominal expiry date
If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:
(a) one or more of the employers covered by the agreement;
(b) an employee covered by the agreement;
(c) an employee organisation covered by the agreement.”
Section 226 of the Act provides:
“226 When the FWC must terminate an enterprise agreement
If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:
(a) the FWC is satisfied that it is not contrary to the public interest to do so; and
(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:
(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and
(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”
In support of the application, Ms Kirsty Anne O’Rourke, Senior HR Manager, University Partnerships Australasia - WA, SA, Dubai, Singapore, ACBT & NZ, provided a declaration dated 6 May 2022. The declaration provided, inter alia, that on or around 26 June 2020, the Applicant ceased providing any English language training courses at Charles Darwin University, Ellengowan Drive, Casuarina in the Northern Territory, and has not provided any similar education services in the Northern Territory since that time. Ms O’Rourke provided that the Applicant ceased to employ any person whose employment was covered by the Agreement by or around that date. Ms O’Rourke declared that the Applicant has not sold, assigned or transferred any assets that were engaged in the provision of English language training courses by the Applicant in the Northern Territory to any other employer.
Based on the material contained in the employer’s declaration, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement
The termination will operate from 10 May 2022.
An order giving effect to this decision is separately issued in PR741436.
COMMISSIONER
Printed by authority of the Commonwealth Government Printer
<AE426007 PR741435>
- AGLC
- Navitas English Services Pty Ltd [2022] FWCA 1554
- Case
- [2022] FWCA 1554
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Commission was whether the changes to the company’s business model constituted a change in the circumstances that would justify the termination of the enterprise agreement. The company contended that the agreement was no longer appropriate due to the significant structural changes, while the union argued that the changes did not constitute a fundamental shift warranting the termination of the agreement.
The Commission examined the criteria for terminating an enterprise agreement under the Fair Work Act 2009, focusing on whether there had been a substantial change in circumstances since the agreement was made. The Commission concluded that the evidence demonstrated a significant shift in the company’s business operations and financial model, which rendered the existing agreement inequitable and unworkable. It found that the changes were fundamental and could not be managed through negotiation or minor amendments. Therefore, the application for termination was successful.
The Commission ordered that the Navitas English Services Darwin Teachers' Enterprise Agreement 2017-2019 be terminated, effective from the date of the decision. The decision allows the company to implement its new business model without being bound by the terms of the terminated agreement.
Orders
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Background
Background to the litigation
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Evidence
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Decision
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Ratio Decidendi
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