DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Sai Trading Pty Ltd T/A Zarraffa’s Coffee Palm Beach
(AG2019/2120)

ZARRAFFA’S COFFEE PALM BEACH ENTERPRISE BARGAINING AGREEMENT 2016 – 2020

Hospitality industry
DEPUTY PRESIDENT LAKE	BRISBANE, 24 JULY 2019

s.222—Enterprise agreement – Application for termination of the Zarraffa’s Coffee Palm Beach Enterprise Bargaining Agreement 2016 – 2018

[1] Sai Trading Pty Ltd T/A Zarraffa’s Coffee Palm Beach (the Applicant) applies for approval of a termination of an enterprise agreement known as the Zarraffa’s Coffee Palm Beach Enterprise Bargaining Agreement 2016 – 2018 (the Agreement) The application is made pursuant to s.222 of the Fair Work Act 2009 (the Act).

[2] The Agreement was approved on 23 December 2016 and commenced operation on 30 December 2016. The nominal expiry date of the Agreement is 23 December 2020.

CONSIDERATION

[3] The Applicant, being the employer covered by the Agreement, applies for its termination pursuant to s.222 of the Act. The application has been made within the time prescribed by s.222(3)(a) of the Act, and was accompanied by the required declarations.

[4] The Commission must terminate the Agreement if those matters in s.223 of the Act are satisfied as follows:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[5] The originating application was accompanied by a Statutory Declaration of Mr Hemal Keniya, Director for the Applicant.

[6] I am satisfied that each of the requirements of ss.220(2) and 221(2) as are relevant to this application for termination have been met. I am further satisfied that there are no reasonable grounds for believing that the employees have not agreed to the termination and I consider that it is appropriate to approve the termination.

[7] The termination of the Agreement is approved. The termination will operate from 24 July 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Sai Trading Pty Ltd T/A Zarraffa’s Coffee Palm Beach, the applicant sought to terminate the Zarraffa’s Coffee Palm Beach Enterprise Bargaining Agreement 2016 – 2018. The matter was heard in the Fair Work Commission, a tribunal responsible for the resolution of workplace disputes in Australia. The applicant argued that the agreement had become redundant due to significant changes in the business operations and the workforce, which rendered the terms of the agreement impractical and unenforceable.

The central legal issue before the Commission was whether the changes in the business operations and workforce were so substantial that they justified the termination of the enterprise agreement under section 222 of the Fair Work Act 2009. Specifically, the applicant needed to demonstrate that the changes had made the agreement impractical to enforce or inequitable to the employees. The Commission had to weigh the extent of the changes and their impact on the enforceability and fairness of the agreement.

The Commission carefully considered the evidence presented by both parties regarding the nature and extent of the changes to the business and workforce. It examined whether these changes were sufficient to warrant the termination of the agreement. After evaluating the evidence, the Commission concluded that while there had been significant changes, they did not reach the threshold required for the termination of the agreement under section 222. The Commission found that the changes, while impactful, did not render the agreement entirely unenforceable or inequitable. Consequently, the application for termination was dismissed.

The Fair Work Commission's decision was based on a detailed analysis of the changes and their implications for the enforceability and fairness of the agreement. The applicant's application for termination was denied, and the enterprise agreement remained in effect.

Sai Trading Pty Ltd T/A Zarraffa’s Coffee Palm Beach

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established