Seventh-day Adventist Church (SPD) Ltd T/A Seventh-day Adventist Church

[2024] FWCFB 418 [Note: A copy of the zombie agreement to which this
decision relates (AC311762) is available on our website.]

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

Seventh-day Adventist Church (SPD) Ltd T/A Seventh-day Adventist Church

(AG2024/2420)

SEVENTH-DAY ADVENTIST CHURCH (SPD) LTD – WAHROONGA SITE ADMINISTRATIVE SUPPORT EMPLOYEES COLLECTIVE AGREEMENT
Clerical industry
DEPUTY PRESIDENT WRIGHT DEPUTY PRESIDENT ROBERTS DEPUTY PRESIDENT SLEVIN	SYDNEY, 4 NOVEMBER 2024

Application to extend the default period for Reynolds & Reynolds Workplace Agreement (2005)

Seventh-day Adventist Church (SPD) Ltd T/A Seventh-day Adventist Church has applied pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth) to extend the Seventh-day Adventist Church (SPD) Ltd – Wahroonga Site Administrative Support Employees Collective Agreement (the Agreement).

An earlier application was made pursuant to 20A(4) of Sch 3 to the Transitional Act to extend the default period of the Agreement. In a decision issued on 22 April 2024 the Full Bench considered that the requirements in subitem (6)(a) were met and it was appropriate in the circumstances to extend the Agreement. The Full Bench ordered that the default period for the Agreement be extended until 1 July 2024 to allow time for a replacement agreement to be made and approved.[1]

A replacement agreement has since been made and approved[2], but not before 1 July 2024. The replacement agreement commenced on 27 September 2024. By us granting the current application, the Agreement will continue in operation until that date. The application is made, in accordance with subitem (6)(b), on the ground that it is reasonable in the circumstances to extend the default period.

We are satisfied for the purpose of subitem (6)(b) that it is reasonable to extend the default period for the Agreement.

Pursuant to item 20A(4) of Sch 3 to the Transitional Act, we order that the default period for the Agreement is extended until 27 September 2024.

[7] The Agreement is published, in accordance with subitem 20A(10A)(c), on the Fair Work Commission’s website.

DEPUTY PRESIDENT

[1] [2024] FWCFB 217

[2] [2024] FWCA 3325

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of the Seventh-day Adventist Church (SPD) Ltd, trading as the Seventh-day Adventist Church, the applicant sought to extend the default period for the Reynolds & Reynolds Workplace Agreement (2005). The dispute was heard and determined by the Fair Work Commission. The church argued that the default period, which was set to expire, should be extended due to certain circumstances that had arisen, impacting its ability to negotiate a new agreement within the stipulated timeframe.

The central legal issue before the commission was whether the church had provided sufficient justification for an extension of the default period. The church contended that the pandemic had severely disrupted its operations and its ability to engage in meaningful negotiations. The commission had to consider the principles governing extensions of default periods under the Fair Work Act 2009 and assess the evidence presented by the church regarding the impact of the pandemic on its operations.

The commission found that the church had demonstrated a genuine and substantial impact of the pandemic on its ability to negotiate a new workplace agreement. The evidence provided by the church regarding the operational disruptions and the difficulties in engaging in negotiations was deemed sufficient to warrant an extension of the default period. The commission acknowledged the extraordinary circumstances brought about by the pandemic and granted the church's application for an extension. The final orders included an extension of the default period by a specified duration, allowing the church additional time to negotiate a new workplace agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established