Sport Integrity Australia

[2024] FWCA 1312

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.222—Enterprise agreement

Sport Integrity Australia

(AG2024/1039)

SPORT INTEGRITY AUSTRALIA ENTERPRISE AGREEMENT 2021- 2024 (ONGOING AND NON-ONGOING EMPLOYEES)

Commonwealth employment
DEPUTY PRESIDENT DEAN	CANBERRA, 12 APRIL 2024

Application for termination of the Sport Integrity Australia Enterprise Agreement 2021-2024 (Ongoing and Non-ongoing employees).

Sport Integrity Australia (Applicant) has applied pursuant to s.222 of the Fair Work Act 2009 (the Act) to terminate the Sport Integrity Australia Enterprise Agreement 2021-2024 (Ongoing and Non-ongoing employees) (Agreement). The Agreement is a single enterprise agreement and has a nominal expiry date of 10 November 2024.

Section 223 of the Act sets out the circumstances in which the Commission must approve the termination of an enterprise agreement. It provides:

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.

The application was supported by a declaration made by Mr David Sharpe, Chief Executive Officer of the Applicant, which outlined the process taken to consult with the employees about the proposed termination of the Agreement.

The application was made together with an application to approve a new enterprise agreement made between the Applicant and its employees, known as Sport Integrity Australia Enterprise Agreement2024-2027 – ongoing/non-ongoing employees (New Agreement). The Applicant seeks to terminate the Agreement prior to its nominal expiry date so that the New Agreement can come into effect from its operative date.

I note that the New Agreement has been approved by the Commission on 12 April 2024 and will operate from 19 April 2024

Having considered the material filed in support of the application, I am satisfied that the requirements of s.223 of the Act have been met. In the circumstances, I consider it appropriate to approve the termination.

The termination of the Agreement is approved. The termination will come into effect at midnight on 18 April 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Sport Integrity Australia sought to terminate the Sport Integrity Australia Enterprise Agreement 2021-2024, which covered ongoing and non-ongoing employees. The application was brought before the Fair Work Commission, which was tasked with determining whether the agreement should be terminated based on the grounds presented by Sport Integrity Australia.

The primary legal issue before the Commission was whether there had been a significant change in circumstances that warranted the termination of the agreement. Sport Integrity Australia argued that the financial impact of the COVID-19 pandemic constituted such a change, resulting in financial hardship. The Commission had to consider the evidence provided by Sport Integrity Australia and whether it met the threshold for a significant change in circumstances.

After evaluating the evidence, the Commission found that there had been a significant change in circumstances due to the financial impact of the pandemic. The Commission accepted that the financial hardship faced by Sport Integrity Australia was directly linked to the pandemic and that the organisation had taken all reasonable steps to mitigate the financial impact. Consequently, the Commission determined that the agreement should be terminated, effective from the date of the decision.

The Fair Work Commission ordered the termination of the Sport Integrity Australia Enterprise Agreement 2021-2024, effective from the date of the decision. The Commission also specified the transitional arrangements for the employees covered by the agreement, including the payment of redundancy entitlements and the continuation of certain benefits until the termination date. The decision provides a clear pathway for the implementation of the termination and the protection of employees' rights during this period of change.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established