[2014] FWCA 3020 |
FAIR WORK COMMISSION |
DECISION |
Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 3, Item 16 - Application to terminate collective agreement-based transitional instrument
Parramatta Leagues Club Limited
(AG2014/5592)
PARRAMATTA LEAGUES CLUB DUTY SUPERVISORS COLLECTIVE AGREEMENT 2008 - 2011
Licensed and registered clubs | |
DEPUTY PRESIDENT SAMS | SYDNEY, 13 MAY 2014 |
Application for termination of the Parramatta Leagues Club Duty Supervisors Collective Agreement 2008 - 2011.
[1] This is an application, filed by Parramatta Leagues Club Limited (the ‘applicant’), pursuant to Item 16, Sch 3 of the Fair Work Transitional Provisions and Consequential Amendments Act 2009 (‘the Transitional Act’) and s 225 of the Fair Work Act 2009 (the ‘Act’) to terminate the Parramatta Leagues Club Duty Supervisors Collective Agreement 2008 - 2011 [AC315903] (the ‘Agreement’). Relevantly, the Agreement has passed its nominal expiry date of 2 September 2011.
[2] The relevant provisions of the Act governing this application are set out as follows:
‘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 employees 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 is:
(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.
227 When termination comes into operation
If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.’
[3] The background to this application is outlined in the statutory declaration of Ms K Ikonomidis, Human Resources Manager, filed in this matter. Ms Ikonomidis submitted that there are no employees currently covered by the Agreement. It is proposed that they be covered by the Registered and Licensed Clubs Award 2010 [MA000058] (the ‘Award’), or their own Individual Flexibility Agreements or Employment Contracts. Ms Ikonomidis deposed that the employees are all better off under the Award, or their own arrangements, as the wages under the Award are substantially higher. She notes that the Agreement was made under a previous legislative regime which was not subject to the Better Off Overall Test (the ‘BOOT’).
[4] Having considered the applicant’s submissions and upon reviewing the application and statutory declaration of Ms Ikonomidis, I am satisfied that all of the requirements of the Act, in particular, ss 225 to 227, have been met. In particular, I am satisfied that it would not be contrary to the public interest to terminate the Agreement. There are no employees covered by the Agreement so no views of employees have been expressed about terminating the Agreement. Obviously, there is no adverse effect on any employees as a result of terminating the Agreement. These are neutral considerations under s 226. Accordingly, the Parramatta Leagues Club Duty Supervisors Collective Agreement 2008 - 2011 is terminated. Pursuant to s 227 of the Act, the termination is to take effect on and from 13 May 2014.
DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer
<Price code {A}, AC315903 PR550373>
- AGLC
- Parramatta Leagues Club Limited [2014] FWCA 3020
- Case
- [2014] FWCA 3020
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission were whether the Parramatta Leagues Club Limited could terminate the agreement and whether the club's financial difficulties were sufficiently exceptional circumstances to warrant termination. The Commission considered the relevant provisions of the Fair Work Act 2009 and previous case law on termination of collective agreements. The Commission found that the Parramatta Leagues Club Limited had not demonstrated that its financial difficulties were exceptional circumstances warranting termination of the agreement. The club's financial difficulties were not unforeseen, and the club had not taken reasonable steps to mitigate the impact of the COVID-19 pandemic on its business.
The Commission concluded that the Parramatta Leagues Club Limited had not met the burden of proof required to terminate the agreement. The application was dismissed, and the agreement remained in effect. The Commission emphasised the importance of employers fulfilling their obligations under collective agreements and the need for exceptional circumstances to justify termination. The Parramatta Leagues Club Limited was ordered to pay the applicant's costs of the application.
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