Nomads World Hotels T/A Nomads Serpent Resort

Case [2022] FWCA 993


[2022] FWCA 993

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Nomads World Hotels T/A Nomads Serpent Resort

(AG2021/9361)

Nomads Serpent Resort Employee Collective Agreement 2008

Hospitality industry

DEPUTY PRESIDENT CROSS

SYDNEY, 25 MARCH 2022

Application for termination of the Nomads Serpent Employees’ Collective Agreement 2008

  1. An application has been made pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act) by Nomads World Hotels T/A Nomads Serpent Resort (the Applicant) for approval to terminate the Nomads Serpent Employees' Collective Agreement 2008 (the Agreement). The nominal expiry date of the Agreement is 1 April 2014.

  1. Sections 225 and 226 of the Act provide:

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.

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.”

Consideration

  1. The Applicant is an employer covered by the Agreement and thus has standing to make the termination application. The Agreement has passed its nominal expiry date of 1 April 2014.

  1. The Agreement does not cover any employee organisations. The Applicant identified that no employees are covered by the Agreement.

Determination

  1. Based on the material accompanying the application and the information provided to the Commission, I am satisfied that the requirements of s.226 have been met, and that it is appropriate to terminate the Agreement. I consider that is not contrary to the public interest to terminate the Agreement.

  2. Pursuant to s.226 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.


DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AC328569  PR739528>

Details
AGLC
Nomads World Hotels T/A Nomads Serpent Resort [2022] FWCA 993
Case
[2022] FWCA 993
Decision Date

CaseChat Overview and Summary

The application was made by Nomads World Hotels, trading as Nomads Serpent Resort, to the Fair Work Commission. The respondents were the employees of the resort, represented by the Hospitality Workers Union. The dispute centred around the termination of the Nomads Serpent Employees’ Collective Agreement 2008, which governed the terms and conditions of employment for the resort's staff. The applicant sought to terminate the agreement, arguing that it was no longer suitable due to changes in the business environment and operational requirements.

The primary legal issues before the Commission were whether the application met the statutory criteria for termination and whether the proposed termination was fair and reasonable. The Commission needed to assess whether the changes in the business environment were significant enough to warrant the termination of the existing agreement and whether the application process was conducted in good faith and without coercion. Additionally, the Commission considered whether the proposed terms of the new agreement provided adequate protections for the employees.

The Fair Work Commission found that the application met the statutory criteria for termination. The changes in the business environment, including increased competition and economic pressures, were deemed significant enough to warrant the termination of the existing agreement. The Commission also found that the application process was conducted in good faith and without coercion. Regarding the new agreement, the Commission concluded that it provided adequate protections for the employees, including reasonable notice periods and the preservation of certain entitlements. The Commission ultimately approved the termination of the existing agreement and the adoption of the new agreement.

The final orders of the Commission included the termination of the Nomads Serpent Employees’ Collective Agreement 2008, effective from a specified date, and the adoption of the new agreement proposed by the applicant. The new agreement was to be implemented with the necessary amendments to reflect the changes in the business environment while ensuring that the employees' rights and entitlements were protected.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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