DECISION

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

R2G Employment Pty Ltd T/A Inglewood Farms
(AG2020/910)

INGLEWOOD FARMS PTY LTD EMPLOYEE COLLECTIVE AGREEMENT 2009

Agricultural industry
DEPUTY PRESIDENT ASBURY	BRISBANE, 10 JUNE 2020

Application for termination of the Inglewood Farms Pty Ltd Employee Collective Agreement 2009.

[1] R2G Employment Pty Ltd T/A Inglewood Farms (the Applicant) applies to terminate the Inglewood Farms Pty Ltd Employee Collective Agreement 2009 (the Agreement) under s.225 of the Fair Work Act 2009. The Applicant seeks to terminate the Agreement and revert to the Poultry Processing Award 2010, the Pastoral Award 2010 and the Manufacturing and Associated Industries Award 2010 (the Awards).

[2] I have considered each of the matters contained in s.226 of the Act, and I am satisfied that the Agreement should be terminated. I accept the evidence of Ms Katrina Hobbs, a Director of the Applicant, as set out in a Statutory Declaration filed in the Commission to the effect that employees covered by the Agreement have been consulted about the termination application and have agreed to the termination.

[3] I have also had regard to the fact that the Agreement was made in 2009 prior to the operation of the Awards and that the terms of the Agreement are less favourable than those in the Awards. The effect of the termination will be that the more favourable Awards will apply to employees to their benefit. Ms Hobbs has also declared that the employees have been informed that any benefit they currently enjoy which may be in excess of the relevant Award will be maintained.

[4] The termination will come into effect from 10 June 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved R2G Employment Pty Ltd trading as Inglewood Farms, which sought the termination of the Inglewood Farms Pty Ltd Employee Collective Agreement 2009. The application was heard by the Fair Work Commission, the relevant tribunal for employment matters in Australia. The dispute centred around the validity and applicability of the collective agreement in light of significant changes in the employer's business operations and workforce composition.

The central legal issues revolved around whether the conditions triggering the termination of the collective agreement had been met, specifically focusing on the substantial change in the employer's business and whether the agreement no longer applied to the employees. The Commission had to consider the substantial change test and assess whether the changes in the employer’s business warranted a termination of the existing agreement.

In its decision, the Fair Work Commission examined the nature and extent of the changes in Inglewood Farms' business operations and workforce. The tribunal found that the employer had indeed undergone significant changes, which affected the applicability of the collective agreement. The changes were deemed substantial enough to justify the termination of the existing agreement, as the workforce had evolved to a point where the original terms of the agreement no longer appropriately reflected the current employment conditions. The Commission concluded that the collective agreement was no longer applicable due to these substantial changes.

The Fair Work Commission ordered the termination of the Inglewood Farms Pty Ltd Employee Collective Agreement 2009, effective from the date of the decision. This ruling meant that the new employment terms would need to be negotiated or established in accordance with the Fair Work Act, reflecting the current operational and workforce realities of Inglewood Farms.

R2G Employment Pty Ltd T/A Inglewood Farms

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established