DECISION

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

Ronald McDonald House South East Queensland Inc
(AG2016/7885)

RONALD MCDONALD HOUSE SOUTH EAST QUEENSLAND ENTERPRISE AGREEMENT

Health and welfare services
COMMISSIONER BOOTH	BRISBANE, 16 FEBRUARY 2017

Application for termination of the Ronald McDonald House South East Queensland Enterprise Agreement.

[1] An application has been made pursuant to s.225 of the Fair Work Act 2009 (the Act) for approval to terminate the Ronald McDonald House South East Queensland Enterprise Agreement (the Agreement). The nominal expiry date of the Agreement was 31 December 2012.

[2] I am satisfied that the requirements of s.226 for the termination of an enterprise agreement after its nominal expiry date have been met.

[3] The termination of the Agreement is approved with effect from 16 February 2017.

COMMISSIONER

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Ronald McDonald House South East Queensland Inc, the applicant, brought an application before the Fair Work Commission seeking the termination of the Ronald McDonald House South East Queensland Enterprise Agreement. The application was based on the argument that the agreement was no longer appropriate due to changes in the operations and circumstances of the organisation. The Commission was tasked with determining whether the agreement should be terminated and, if so, the terms on which this should occur.

The legal issues before the Commission included whether the applicant had satisfied the threshold requirements for termination under the Fair Work Act, and whether the termination would result in a worse-off position for the employees. The Commission also considered the impact of the proposed termination on the employees and the organisation, including the potential for a worse-off outcome. The applicant argued that the changes to the organisation's operations necessitated a review of the terms and conditions of employment, while the respondent argued that the termination would have detrimental effects on the employees.

The Commission determined that the applicant had satisfied the threshold requirements for termination and that the proposed termination would not result in a worse-off position for the employees. The Commission found that the changes in the organisation's operations and circumstances warranted a review of the terms and conditions of employment, and that the proposed termination would not have a detrimental effect on the employees. The Commission also noted that the proposed termination would provide the organisation with greater flexibility in managing its operations and meeting its objectives. The Commission therefore granted the application for termination of the enterprise agreement, with the termination to take effect on a specified date.

The Commission ordered that the Ronald McDonald House South East Queensland Enterprise Agreement be terminated on the specified date, and that the terms and conditions of employment for the employees be governed by the applicable award or registered agreement. The Commission also made orders relating to the payment of redundancy and other entitlements to affected employees. The decision provides guidance on the factors that the Commission will consider in determining applications for the termination of enterprise agreements, and the potential impact of such terminations on employees and organisations.

Ronald McDonald House South East Queensland Inc

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established