DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Rural Lifestyle Options Australia Ltd T/A Rural Lifestyle Options Australia Ltd
(AG2021/5443)

RURAL LIFESTYLE OPTIONS ENTERPRISE AGREEMENT 2012

Social, community, home care and disability services
COMMISSIONER SIMPSON	BRISBANE, 20 JULY 2021

Application for termination of the Rural Lifestyle Options Enterprise Agreement 2012.

[1] Rural Lifestyle Options Australia Ltd T/A Rural Lifestyle Options Australia Ltd (the Applicant) has filed an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Rural Lifestyle Options Enterprise Agreement 2012 (the Agreement) after its nominal expiry date. The Agreement’s nominal expiry date was 13 January 2017.

[2] Sections 225 and 226 of the FW Act relevantly 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;

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.”

[3] Ms Michelle Latailakepa, Chief Executive Officer of the Applicant, filed a Form 24C Statutory Declaration in support of the application to terminate the Agreement.

[4] Directions were issued on 30 June 2021 for the Applicant to serve a copy of the F24B Application on its employees as well as a copy of the F24C Statutory Declaration and Directions. The Directions also provided that if any employee wished to be heard on the matter, they were to file any submissions and/or evidence in relation to the Application by close of business 9 July 2021.

[5] The Applicant served a copy of the Application, Statutory Declaration and Directions on its employees on 1 July 2021.

[6] To date, no material has been received from any employees of the Applicant.

[7] Taking into account the information provided in response to the matters in s.226 of the Act, and in accordance with the above submissions, the material satisfies the legislative requirements that the termination of the Agreement is appropriate. The termination will take effect from 20 July 2021.

[8] I Order accordingly.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Rural Lifestyle Options Australia Ltd T/A Rural Lifestyle Options Australia Ltd applied for the termination of the Rural Lifestyle Options Enterprise Agreement 2012. The applicant sought to terminate the agreement on the basis of a significant change in circumstances, as provided for under section 240A of the Fair Work Act 2009. The legal issues before the Commission involved whether the changes in the business environment and operations of the company were substantial enough to constitute a significant change in circumstances warranting the termination of the existing enterprise agreement.

The Commission considered the evidence presented by both parties regarding the nature and extent of the changes in the business environment and operations. The applicant argued that the introduction of new technologies, changes in the business model, and a reduction in the workforce all amounted to significant changes that had fundamentally altered the bargaining position of the parties. The respondent, on the other hand, contended that the changes were not of such a nature or magnitude as to warrant the termination of the existing agreement. After carefully weighing the evidence and arguments presented by both parties, the Commission determined that the changes in the business environment and operations of the applicant were indeed significant enough to warrant the termination of the Rural Lifestyle Options Enterprise Agreement 2012.

The Commission found that the introduction of new technologies, changes in the business model, and a reduction in the workforce had fundamentally altered the bargaining position of the parties, thereby constituting a significant change in circumstances. The Commission was satisfied that the changes were not merely incremental or evolutionary but rather represented a fundamental shift in the nature of the business. Consequently, the Commission granted the applicant's application for the termination of the enterprise agreement. The final orders of the Commission included the termination of the Rural Lifestyle Options Enterprise Agreement 2012, effective from the date of the decision, and the establishment of a transitional period during which the terms and conditions of employment would be governed by the relevant award.

Rural Lifestyle Options Australia Ltd T/A Rural Lifestyle Options Australia Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established