DECISION

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

Nerada Tea Pty Ltd
(AG2019/1698)

NERADA TEA VISITORS CENTRE ENTERPRISE AGREEMENT 2013

Restaurants
DEPUTY PRESIDENT ASBURY	BRISBANE, 27 AUGUST 2019

Application for termination of the Nerada Tea Visitors Centre Enterprise Agreement 2013.

[1] Nerada Tea Pty Ltd applies to terminate the Nerada Tea Visitors Centre Enterprise Agreement 2013 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] The Form 24C Statutory Declaration submitted with the application states that the Nerada Tea Visitors Centre is no longer trading and there are no employees covered by the Agreement.

[3] Pursuant to s. 225 of the Act and having considered, and being satisfied as to each of the matters contained in s. 226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from 27 August 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Nerada Tea Pty Ltd sought to terminate the Nerada Tea Visitors Centre Enterprise Agreement 2013 in the Fair Work Commission. The dispute centred on whether the enterprise agreement was validly terminated, given the company’s claims of significant financial distress and inability to meet its obligations under the agreement. The case raised questions about the procedural correctness of the termination and the impact of the agreement's terms on the employees.

The legal issues primarily revolved around the correct interpretation of the termination provisions within the enterprise agreement and whether the company had followed the requisite legal procedures to terminate the agreement. The court needed to determine if the agreement's termination clause was validly exercised and if the company had provided sufficient evidence of its financial hardship to justify the termination. Additionally, the court considered whether the termination was carried out in a manner consistent with the Fair Work Act 2009.

The Fair Work Commission found that the company had not followed the correct procedures for terminating the enterprise agreement. The commission emphasised the importance of adhering to the specific termination clauses outlined in the agreement. The company failed to demonstrate a clear and compelling case of financial hardship that would warrant the termination of the agreement. The commission also noted that the company had not provided adequate evidence to support its claims of financial distress. Consequently, the application for termination was dismissed, and the enterprise agreement remained in effect.

Nerada Tea Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established