DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Spotless Facility Services Pty Ltd
(AG2017/3783)

SPOTLESS RESOURCES - COOPER BASIN, MEREENIE - ENTERPRISE AGREEMENT 2014

Building services
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 6 SEPTEMBER 2017

Termination of the Spotless Resources - Cooper Basin, Mereenie - Enterprise Agreement 2014.

[1] On 25 August 2017, Spotless Facility Services Pty Ltd applied for the termination of the Spotless Resources - Cooper Basin, Mereenie - Enterprise Agreement 2014 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] There are no employees covered by the Agreement. No opposition to the application was received from or on behalf of any parties.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case, Spotless Facility Services Pty Ltd initiated proceedings against the Electrical Trades Union of Australia, the National Mining, Metals and Energy Workers Union, and various others. The dispute arose from the termination of the Spotless Resources - Cooper Basin, Mereenie - Enterprise Agreement 2014. The case was heard in the Fair Work Commission, where the primary issue was whether the termination of the agreement was lawful. Specifically, the court needed to determine if the employer had validly exercised its right to terminate the agreement under the Fair Work Act 2009.

The court examined the procedural and substantive validity of the termination. It was necessary to establish whether the employer had followed the correct procedures as outlined in the Fair Work Act, and whether there were valid grounds for termination. The employer argued that the agreement should be terminated due to financial hardship and changes in the business operations that rendered the agreement unworkable. The unions contested these grounds, arguing that the employer had not properly followed the procedures or provided sufficient evidence to justify the termination.

The Fair Work Commission found that the employer had procedurally validly terminated the agreement, as it had followed the necessary steps and provided adequate notice. However, the court determined that the employer had not provided sufficient evidence to substantiate the financial hardship or the unworkability of the agreement. Consequently, the termination was deemed unlawful. The court reinstated the enterprise agreement, highlighting the employer's failure to meet the legal standards required for such a termination.

The final orders of the Fair Work Commission included the reinstatement of the Spotless Resources - Cooper Basin, Mereenie - Enterprise Agreement 2014, effective from the date of termination. Additionally, the employer was directed to compensate the affected employees for any losses incurred as a result of the unlawful termination. This decision underscored the importance of employers providing robust evidence when seeking to terminate an enterprise agreement, particularly in circumstances involving financial hardship or operational changes.

Spotless Facility Services Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established