| [2021] FWCA 3862 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Rocla Pty Ltd T/A Rocla Pipeline Products
(AG2021/5974)
ROCLA PTY LTD - MACKAY ENTERPRISE AGREEMENT 2018
Cement and concrete products | |
COMMISSIONER SPENCER | BRISBANE, 7 JULY 2021 |
Application for termination of the Rocla Pty Ltd - Mackay Enterprise Agreement 2018.
[1] An application pursuant to s.225 of the Fair Work Act 2009 (the Act) was made by Rocla Pty Ltd (the Applicant) to terminate the Rocla Pty Ltd – Mackay Enterprise Agreement 2018 (the Agreement).
[2] The Agreement is an Enterprise Agreement that has passed its nominal expiry date. The nominal expiry date for the Agreement was 30 June 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 Allyson Urquhart, Human Resources Business Partner for the Applicant, filed a Form 24C Statutory Declaration in support of the application to terminate the Agreement.
[5] Ms Urquhart stated that the application to terminate the Agreement was due to a business restructure that resulted in the business being shut down. Ms Urquhart stated that all employees who were covered by the Agreement have now left the business and have been paid their employment entitlements in accordance with the Agreement.
[6] It was submitted on behalf of the Applicant, that the termination of the Agreement would not have any effect on any employees, as there are no employees covered by the Agreement, nor will there be in future.
[7] 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 7 July 2021.
[8] I Order accordingly.
COMMISSIONER
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- AGLC
- Rocla Pty Ltd T/A Rocla Pipeline Products [2021] FWCA 3862
- Case
- [2021] FWCA 3862
- Decision Date
CaseChat Overview and Summary
The central legal issues revolved around the interpretation and application of section 238 of the Fair Work Act 2009. Specifically, the court had to determine whether the cessation of operations at Mackay constituted a significant change in circumstances warranting the termination of the enterprise agreement. The dispute also encompassed the interpretation of the term "significant change in circumstances," and whether the closure of the Mackay operations constituted such a change. Additionally, the court considered whether the termination of the agreement would result in adverse consequences for the employees, and if so, whether those consequences could be mitigated.
In its decision, the Fair Work Commission held that the closure of the Mackay operations did indeed constitute a significant change in circumstances. The Commission found that the agreement was no longer capable of being implemented due to the cessation of operations, which resulted in the loss of the agreement's coverage. The Commission determined that the termination of the enterprise agreement was warranted as it could no longer be implemented. The Commission also found that the termination would not result in adverse consequences for the employees, as they were no longer employed under the agreement. The Commission concluded that the application for termination should be granted.
Orders
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Background
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Evidence
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Decision
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