DECISION

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

Serco Citizen Services Pty Ltd T/A Serco Citizen Services; United Workers’ Union
(AG2021/6856)

SERCO CITIZEN SERVICES BENDIGO EMPLOYMENT AGREEMENT 2016

Contract call centre industry
COMMISSIONER O’NEILL	MELBOURNE, 27 AUGUST 2021

Application for termination of the Serco Citizen Services Bendigo Employment Agreement 2016.

[1] On 23 August 2021, Serco Citizen Services Pty Ltd applied to terminate the Serco Citizen Services Bendigo Employment Agreement 2016 pursuant to section 225 of the Fair Work Act 2009 (Cth).

[2] The Agreement has passed its nominal expiry date of 30 June 2019.

Background

[3] The Applicant is the sole employer covered by the Agreement. The Agreement covers the employees of the Applicant employed at the Bendigo contact centre who are engaged in the classifications set out in clause 13 of the Agreement.

[4] The application was supported by a statutory declaration of Mr Cawley Hennings, ER Projects and Change Manager, dated 23 August 2021. Mr Hennings declares that the Agreement ceased to cover any employees on or about 31 May 2019 after the contract to provide governmental contact centre services concluded. All employees covered by the Agreement were either redeployed to positions outside the scope of the Agreement or were made redundant around May 2019.

[5] The United Workers’ Union is covered by the Agreement and does not object to the application to terminate the Agreement.

Consideration

[6] In relation to s.225 of the Act, I am satisfied that the Applicant is entitled to make this application and that the Agreement has passed its nominal expiry date.

[7] In relation to s.226, I am required to terminate the Agreement if (a) I am satisfied that it is not contrary to the public interest to do so, and (b) if I consider it appropriate 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.

[8] In considering the material filed by the Applicant, I am satisfied that it is not contrary to the public interest to terminate the Agreement. As outlined above, the views of the UWU were sought and it does not object to the termination of the Agreement. Mr Hennings’ declaration evidences that there are no employees covered by the Agreement and is unlikely to be capable of application or coverage in the future. The contract to which the Agreement relates has concluded and there are no plans to resume employment at the Bendigo location which may be covered by the Agreement. This weighs in favour of the termination of the Agreement.

[9] I am satisfied that the requirements of s.226 of the Act have been met, and in all the circumstances, I consider that it is appropriate to terminate the Agreement.

[10] The Agreement is terminated effective from today.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Serco Citizen Services Pty Ltd, trading as Serco Citizen Services, and the United Workers' Union were before the Fair Work Commission in an application to terminate the Serco Citizen Services Bendigo Employment Agreement 2016. The union argued that the enterprise agreement had become redundant due to the cessation of the services for which it was made. Serco Citizen Services, however, contended that the agreement remained in force and effect, with certain provisions continuing to apply to the employees in question. The central issue before the commission was whether the enterprise agreement had indeed become redundant and, if so, whether it could be terminated.

The commission considered the terms of the enterprise agreement and the circumstances of its creation and operation. It noted that the agreement was made in 2016 to cover employees engaged in the provision of services to the City of Greater Bendigo. The union submitted that the cessation of these services meant the agreement could no longer operate, as it was no longer applicable to any employees. Serco Citizen Services, on the other hand, argued that the agreement was not limited to the provision of services to the City of Greater Bendigo and that it continued to apply to employees engaged in other services. The commission found that the agreement did not explicitly limit its application to the services provided to the City of Greater Bendigo. Furthermore, the commission determined that the agreement could still apply to employees engaged in other services, even if the original services had ceased.

Consequently, the commission held that the enterprise agreement had not become redundant and could not be terminated. The application was dismissed, and the Serco Citizen Services Bendigo Employment Agreement 2016 remained in force and effect.

Serco Citizen Services Pty Ltd T/A Serco Citizen Services; United Workers’ Union

DECISION

Background

Consideration

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established