Rentokil initial Pty Ltd T/A Rentokil initial

[2021] FWCA 4365

[2021] FWCA 4365

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Rentokil initial Pty Ltd T/A Rentokil initial
(AG2021/6290)

NORTHERN TERRITORY PEST AND WEED CONTROL WORKPLACE AGREEMENT 2017 - 2021

Northern Territory
COMMISSIONER SPENCER	BRISBANE, 29 JULY 2021

Application for termination of the Northern Territory Pest and Weed Control Workplace Agreement 2017 - 2021.

[1] An application pursuant to s.225 of the Fair Work Act 2009 (the Act) was made by Rentokil Initial Pty Ltd (the Applicant) to terminate the Northern Territory Pest & Weed Control Workplace Agreement 2017 - 2021 (the Agreement).

[2] The Agreement is an Enterprise Agreement that has passed its nominal expiry date. The nominal expiry date for the Agreement was 31 May 2021.

[3] 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.”

[4] Ms Genine Lopes, Human Resources and SHE Director for the Applicant, filed a Form 24C Statutory Declaration in support of the application to terminate the Agreement.

[5] Ms Lopes stated that on 11 December 2019 the Applicant acquired the Northern Territory Pest & Weed Control business under an asset deal. Consequently, ten employees transferred their employment to the Applicant under this Agreement and the Applicant was covered by the Agreement.

[6] Ms Lopes stated that these ten transferring employees would be better off if employed under the same conditions and entitlements as the 724 employees in the Pest Control Division of the Applicant’s business. Additionally, Ms Lopes submitted that the Applicant had consulted with the affected employees and demonstrated the differences in conditions, entitlements and potential earnings in terminating the Agreement. Accordingly, the ten employees agreed to the termination of the Agreement.

[7] On the 20 July 2021, Directions were issued requiring the Applicant to file further evidence in satisfaction of s. 225 and s. 226 of the Act.

[8] In response to the Directions, the Applicant provided further submissions which set out that each of the 10 employees covered by the Agreement were advised in a group meeting on 25 June 2021 of the Applicant’s intention to seek their agreement to the termination of the Agreement. Each employee was emailed on 25 June 2021 a 2 page letter (Transition to Rentokil Initial Employment Conditions), which detailed their current conditions compared to those offered under the Rentokil Initial individual flexibility arrangement, which would observe the Pest Control Industry Award 2020, whilst offering higher wage rates and entitlements. This correspondence provided calculations demonstrating that the employees would be receive higher rates and entitlements under the new contracts, than those that were offered under the Agreement. A copy of this correspondence was provided to the Commission.

[9] Ms Lopes stated that individual meetings were held with each employee during the week commencing 12 July 2021.During the individual meetings, each employee was further provided hard copies of documents relevant to them, including a copy of their employment contract.

[10] Ms Lopes further stated that copies of the Pest Control Industry Award and NTP Workplace Agreement were made available during these meetings to reference in the case of any specific questions.

[11] It was further stated by Ms Lopes that following the individual meetings with employees, and the provision of the relevant documents and consultation, all 10 employees signed the 2 page letter that was provided to them, acknowledging their support to transition to Rentokil Initial terms and conditions as detailed in the letter. Copies of these signed letters were provided to the Commission.

[12] Ms Lopes stated that there is nothing within the knowledge of the Applicant that may indicate that it would be contrary to the public interest to terminate the Agreement.

[13] Taking into account the information provided in response to the matters in s.226 of the Act, I consider it appropriate to terminate the Agreement on the basis that the material satisfies the legislative requirements. The application is therefore granted, and the Agreement is terminated. The termination of the Agreement will take effect from 29 July 2021.

[14] I Order accordingly.

COMMISSIONER

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