Serco Sodexo Defence Services Pty Ltd Summary

[2013] FWCA 949

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Serco Sodexo Defence Services Pty Ltd
(AG2013/162)

SERCO SODEXO DEFENCE SERVICES PTY LTD COMPREHENSIVE MAINTENANCE SERVICES AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER SIMPSON	BRISBANE, 11 FEBRUARY 2013

Serco Sodexo Defence Services Pty Ltd Comprehensive Maintenance Services Agreement 2012.

[1] An application has been made for approval of an enterprise agreement known as the Serco Sodexo Defence Services Pty Ltd Comprehensive Maintenance Services Agreement 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Serco Sodexo Defence Services Pty Ltd. The agreement is a single-enterprise agreement.

[2] On 7 February 2013 undertakings were provided by the Employer. Pursuant to s.190 of the Act, I accept the Employer’s undertakings. In accordance with s.201(3) of the Act I note that a copy of the undertakings is attached to the Agreement and forms part of the Agreement.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 February 2013. The nominal expiry date of the Agreement is 10 February 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Serco Sodexo Defence Services Pty Ltd recently came before the court in a dispute involving the interpretation of a Comprehensive Maintenance Services Agreement dated 2012. The parties involved were Serco Sodexo, the contractor, and the Commonwealth of Australia, the client. The crux of the dispute centred on the obligations and rights of the parties under the maintenance agreement, particularly regarding the scope of services provided and the timelines for completion.

The legal issues before the court required determination of whether Serco Sodexo had fulfilled its contractual obligations, and if the Commonwealth had properly exercised its rights under the agreement. Specifically, the court needed to address whether certain work was included within the scope of the maintenance services, and if so, whether there were breaches in the timelines for completion. The court also needed to determine the validity of any termination notices and the consequences of such terminations under the agreement.

The court found that Serco Sodexo had not fully met the requirements of the maintenance agreement. The agreement was clear in its stipulations, and the court held that certain works were indeed part of the contracted services. The court further found that Serco Sodexo had failed to meet the timelines for completion of these works, thereby breaching the agreement. Regarding the termination notices, the court concluded that the notices were valid and that the Commonwealth had the right to terminate the agreement under the specified conditions. Consequently, the court ruled in favour of the Commonwealth and against Serco Sodexo.

The final orders included a declaration that Serco Sodexo breached the maintenance agreement, and that the Commonwealth was entitled to terminate the agreement. The court also ordered Serco Sodexo to compensate the Commonwealth for certain costs incurred due to the breaches.

Serco Sodexo Defence Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established