DECISION

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

Rose Valley Building Services Pty Ltd T/A Integrity New Homes South Coast
(AG2019/544)

ROSE VALLEY BUILDING SERVICES PTY LTD ENTERPRISE AGREEMENT 2013-2017

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 3 APRIL 2019

Application for termination of the Rose Valley Building Services Pty Ltd Enterprise Agreement 2013-2017.

[1] On 5 March 2019, Rose Valley Building Services Pty Ltd t/a Integrity New Homes South Coast made an application to terminate the Rose Valley Building Services Pty Ltd Collective Agreement 2013-2017 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 3 April 2019.

COMMISSIONER

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CaseChat Overview and Summary

The case involved Rose Valley Building Services Pty Ltd, trading as Integrity New Homes South Coast, and the Australian Building Construction Commission. The dispute arose from an application for the termination of the Rose Valley Building Services Pty Ltd Enterprise Agreement 2013-2017. The matter was heard in the Fair Work Commission. The primary legal issues before the Commission were whether the application for termination of the enterprise agreement met the criteria set out in the Fair Work Act 2009 and whether there were substantial changes in the circumstances of the parties that warranted such a termination.

The Commission examined whether there had been a significant change in the business operations of Rose Valley Building Services that affected the conditions of employment as outlined in the enterprise agreement. The company argued that the nature of their business had evolved substantially, with a shift towards a more residential focus rather than commercial, which necessitated a revision of the existing terms and conditions. The Commission considered the evidence presented regarding the change in business operations, the impact on employees, and whether these changes warranted a termination of the agreement. The Commission also assessed whether the application process complied with the procedural requirements of the Fair Work Act.

After thorough deliberation, the Fair Work Commission found that the application for termination did not meet the threshold for a substantial change in circumstances as required by the Fair Work Act. The Commission determined that the changes in the company's operations did not fundamentally alter the nature of the employment relationship to the extent that it justified the termination of the existing enterprise agreement. Consequently, the application was dismissed. The Commission emphasised the importance of maintaining stability in the workplace and ensuring that any changes to enterprise agreements are justified by significant and enduring shifts in business operations. The decision underscored the necessity for employers to provide robust evidence of substantial changes before seeking to terminate an enterprise agreement.

Rose Valley Building Services Pty Ltd T/A Integrity New Homes South Coast

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established