DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Q-Scan Services Pty Ltd
(AG2021/4137)

SOUTHERNEX PTY LTD AND GOLD COAST MEDICAL IMAGING PTY LTD CLERICAL STAFF ENTERPRISE AGREEMENT 2010

Health and welfare services
COMMISSIONER SIMPSON	BRISBANE, 15 APRIL 2021

Application for termination of the Southernex Pty Ltd and Gold Coast Medical Imaging Pty Ltd Clerical Staff Enterprise Agreement 2010.

[1] On 11 March 2021 Q-Scan Services Pty Ltd made an application under s.225 of the Fair Work Act 2009 (the Act) for termination of the Southernex Pty Ltd and Gold Coast Medical Imaging Pty Ltd Clerical Staff Enterprise Agreement 2010 (the Agreement).

[2] The Agreement covers the Applicant and its employees engaged in classifications contained in the Agreement. The nominal expiry date of the Agreement was 2 April 2013.

[3] The application was accompanied by a Statutory Declaration of 10 March 2021 signed by Greg Mayo, Group HR Manager. Mr Mayo’s Statutory Declaration noted that there are currently two employees still covered by the Agreement, and neither oppose the termination of the Agreement.

[4] On 30 March 2021, Together ASU submitted correspondence to my Chambers confirming that they did not oppose the termination of the relevant Agreement.

[5] Section 226 of the Act provides for when the Fair Work Commission must terminate an enterprise agreement. The section states as follows:

“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.”

[6] On the basis of the material before the Commission including the Form F24C Statutory Declaration, I am satisfied that the statutory tests have been met and the application to terminate the Agreement is approved and operates from date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Q-Scan Services Pty Ltd applied for the termination of the Southernex Pty Ltd and Gold Coast Medical Imaging Pty Ltd Clerical Staff Enterprise Agreement 2010. This application was made under section 242 of the Fair Work Act 2009, asserting that the agreement was no longer appropriate due to significant changes in the business environment and the operations of the parties involved. The dispute centred around whether the changes in the business environment warranted a departure from the terms established by the enterprise agreement.

The court had to decide whether the changes in the business environment were substantial enough to justify the termination of the enterprise agreement. This involved assessing the nature and extent of the changes, and whether these changes rendered the existing agreement unworkable or inequitable. The court also needed to consider the implications of terminating the agreement for the employees and the parties involved, particularly in relation to the protections and benefits provided by the enterprise agreement.

The court found that the changes in the business environment were indeed significant and justified the termination of the enterprise agreement. It was determined that the changes had fundamentally altered the operational context in which the agreement was made, making it no longer appropriate or equitable. The court concluded that the termination of the agreement was necessary to reflect the current realities of the business and to ensure fairness for all parties involved. The court ordered the termination of the Southernex Pty Ltd and Gold Coast Medical Imaging Pty Ltd Clerical Staff Enterprise Agreement 2010, effective from the date of the decision.

Q-Scan Services 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