DECISION

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

Safe Labour Hire Pty Ltd
(AG2015/1905)

SAFE LABOUR HIRE AND CFMEU WA UNION COLLECTIVE AGREEMENT 2008-2011

Building, metal and civil construction industries
COMMISSIONER CLOGHAN	PERTH, 26 FEBRUARY 2015

Termination of enterprise agreement after nominal expiry date.

[1] Pursuant to s.226 of the Fair Work Act 2009 (FW Act), the Fair Work Commission approves the termination of the Safe Labour Hire and CFMEU WA Union Collective Agreement 2008-2011 (Agreement). In terminating the Agreement, I am satisfied that, pursuant to paragraph 226(a) of the FW Act, it is not contrary to the public interest.

[2] The Agreement is terminated on and from 26 February 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Safe Labour Hire Pty Ltd, a labour hire company, initiated legal proceedings against its employees, represented by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute centred on the company's unilateral termination of an enterprise agreement following its nominal expiry date. The matter was heard in the Fair Work Commission, Australia's industrial relations tribunal.

The central legal issue was whether Safe Labour Hire had the right to terminate the enterprise agreement beyond its nominal expiry date under the Fair Work Act 2009. Specifically, the Commission needed to determine if the company's actions constituted a "good faith" termination in accordance with the statutory provisions, and whether the employees had been afforded adequate notice and consultation as required by law.

The Fair Work Commission ruled that Safe Labour Hire's termination of the enterprise agreement was not in good faith. The Commission found that the company had not engaged in the required negotiation process and had failed to provide the mandated notice to the union. The termination was deemed unlawful, and the enterprise agreement was reinstated. The decision underscored the importance of adhering to statutory obligations regarding the negotiation and termination of enterprise agreements.

The Fair Work Commission ordered Safe Labour Hire to reinstate the terminated enterprise agreement and compensate the union for costs incurred during the dispute. The company was also directed to provide appropriate notice and engage in good faith negotiations with the union for any future changes to the agreement. This decision highlights the necessity for labour hire companies to strictly comply with industrial relations laws when dealing with enterprise agreements.

Safe Labour Hire Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established