S.I.M Signs (Australia) Pty Ltd as trustee for the D Little Family Trust T/A S.I.M Signs (Victoria)

Case [2016] FWCA 3518


[2016] FWCA 3518
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

S.I.M Signs (Australia) Pty Ltd as trustee for the D Little Family Trust T/A S.I.M Signs (Victoria)
(AG2016/3293)

D LITTLE FAMILY TRUST T/AS SIM SIGNS AUSTRALIA PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 31 MAY 2016

Application for termination of the D Little Family Trust T/As Sim Signs Australia Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] S.I.M Signs (Australia) Pty Ltd as trustee for the D Little Family Trust t/a S.I.M Signs (Victoria) (Applicant) has applied, pursuant to s.225 of the Fair Work Act 2009 (Act) to terminate the D Little Family Trust T/As Sim Signs Australia Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (Agreement).The Agreement is expressed to cover the Applicant, its employees engaged in building and construction work (refer to clause 4.1(d)) as defined by the award as specified in clause 4.1(a) of the Agreement, its employees who are engaged in any of the occupations, callings or industries as defined by the award as specified in clause 4.1(b) of the Agreement and the Construction, Forestry, Mining and Energy Union. The Agreement has passed its nominal expiry date.

[2] Section 225 of the Act provides:

    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.”

[3] Section 226 of the Act provides:

    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] The CFMEU is an organisation which is covered by the Agreement. In correspondence to my Chambers of 31 May 2016, the CFMEU advised that it did not oppose the termination of the Agreement.

[5] Based on the material contained in the employer’s declaration filed with the application, I am satisfied that termination of the Agreement is not contrary to the public interest. Taking into account all of the circumstances including those in s.226(b)(i) and (ii), I consider that it is appropriate to terminate the Agreement. There is nothing before me which raises public interest considerations which might militate against termination of the Agreement. I am satisfied that it is appropriate to approve the termination of the Agreement, and I terminate the Agreement.

[6] The termination will operate from 31 May 2016.

DEPUTY PRESIDENT

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Details
AGLC
S.I.M Signs (Australia) Pty Ltd as trustee for the D Little Family Trust T/A S.I.M Signs (Victoria) [2016] FWCA 3518
Case
[2016] FWCA 3518
Decision Date

CaseChat Overview and Summary

The case involved S.I.M Signs (Australia) Pty Ltd, acting as the trustee for the D Little Family Trust trading as S.I.M Signs (Victoria), and the Australian Building and Construction Commission. The dispute centred on the application for the termination of the D Little Family Trust's affiliation with the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) Building and Construction Industry Enterprise Agreement 2011-2015. The application was brought before the Fair Work Commission.

The legal issues before the Commission were whether the D Little Family Trust met the criteria for termination of the enterprise agreement as stipulated in section 172 of the Fair Work Act 2009. Specifically, the Commission needed to determine if the Trust's status as a small business met the threshold set by the Act and if there were reasonable grounds to believe that the Trust was not carrying on a business.

The Fair Work Commission found that the D Little Family Trust was not carrying on a business within the meaning of the Act. The evidence presented showed that the Trust had not undertaken any building or construction work since at least 2016 and had no employees. Furthermore, the activities of the Trust did not align with the activities typically undertaken under the enterprise agreement. Given these findings, the Commission ruled that the application for termination was appropriate. Consequently, the termination of the Trust's association with the CFMEU agreement was approved.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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