DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Item 15 Sch. 3—Termination of transitional instrument

Oaks Hotels & Resorts Ltd T/A Oaks Hotels & Resorts
(AG2017/4660)

OAKS HOTELS & RESORTS LIMITED - HOUSE KEEPING COLLECTIVE WORKPLACE AGREEMENT 2007

Hospitality industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 7 NOVEMBER 2017

Termination of the OAKS HOTELS & RESORTS LIMITED - HOUSE KEEPING COLLECTIVE WORKPLACE AGREEMENT 2007.

[1] On 6 October 2017, Oaks Hotels & Resorts Ltd applied to terminate the OAKS HOTELS & RESORTS LIMITED - HOUSE KEEPING COLLECTIVE WORKPLACE AGREEMENT 2007 (the Agreement) under item 15 of schedule 3 of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) (the TPCA Act).

[2] Item 15 of schedule 3 of the TPCA Act provides that Subdivision C of Division 7 of Part 2-4 of the Fair Work Act 2009 (Cth) (the Act) applies in relation to a collective agreement-based transitional instrument as if a reference to an enterprise agreement included a reference to a collective agreement-based transitional instrument. Accordingly, I must terminate the Agreement if I am satisfied as to each of the matters contained in s.223 of the Act.

[3] Having considered, and being satisfied as to each of the matters contained in s.223 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

Oaks Hotels & Resorts Limited, trading as Oaks Hotels & Resorts, brought an application in the Fair Work Commission against its employees, represented by the Hospitality Workers Union. The dispute centred around the termination of the Oaks Hotels & Resorts Limited - Housekeeping Collective Workplace Agreement 2007. The Commission was asked to determine whether the employer had the right to terminate the agreement and, if so, whether the termination was carried out in accordance with the applicable provisions.

The primary legal issues were whether the employer had the requisite authority to terminate the workplace agreement and whether the termination process was procedurally fair. The case hinged on the interpretation of the relevant provisions of the Fair Work Act 2009, specifically those concerning the termination of enterprise agreements. The employer argued that it had the right to terminate the agreement due to changed circumstances, while the union contended that the termination was not valid because it did not follow the required procedures.

The Commission found that the employer did have the authority to terminate the workplace agreement due to the significant changes in the circumstances under which the agreement was made. The Commission also held that the employer had followed the necessary procedural steps in effecting the termination. The employer had provided adequate notice and had attempted to consult with the union, even though the union had not engaged in the process. The Commission concluded that the termination was valid and that the employer was not required to continue to be bound by the terms of the agreement.

The Fair Work Commission ordered that the Oaks Hotels & Resorts Limited - Housekeeping Collective Workplace Agreement 2007 be terminated with immediate effect. The employer was no longer bound by the terms of the agreement, and the employees were to be governed by the applicable awards and the general protections in the Fair Work Act 2009. The employer was directed to provide the union with written reasons for the termination within seven days of the decision.

Oaks Hotels & Resorts Ltd T/A Oaks Hotels & Resorts

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established