Spotless Facility Services Pty Ltd T/A Spotless

Case [2022] FWCA 980


[2022] FWCA 980

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Spotless Facility Services Pty Ltd T/A Spotless

(AG2022/161)

Spotless Remote Sites Onshore Enterprise Agreement 2014

Hospitality industry

DEPUTY PRESIDENT CROSS

SYDNEY, 18 MARCH 2022

Application for termination of the Spotless Remote Sites Onshore Enterprise Agreement 2014

  1. An application has been made pursuant to s.225 of the Fair Work Act 2009 (Cth) (the Act) by Spotless Facility Services Pty Ltd (the Applicant) for approval to terminate the Spotless Remote Sites Onshore Enterprise Agreement 2014 (the Agreement). The nominal expiry date of the Agreement is 1 September 2018.

  1. Sections 225 and 226 of the Act provide:

225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a)       one or more of the employers covered by the agreement;

(b)       an employee covered by the agreement;

(c)       an employee organisation covered by the agreement.

226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a)       the FWC is satisfied that it is not contrary to the public interest to do so; and

(b)       the FWC considers that it is appropriate to terminate the agreement 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.”

Consideration

  1. The Applicant is an employer covered by the Agreement and thus has standing to make the termination application. The Agreement has passed its nominal expiry date of 1 September 2018.

  1. The Agreement does not cover any employee organisations, and the Applicant has identified that no employees are covered by the Agreement.

Determination

  1. Based on the material accompanying the application and the information provided to the Commission, I am satisfied that the requirements of s.226 have been met, and that it is appropriate to terminate the Agreement. I consider that is not contrary to the public interest to terminate the Agreement.

  1. Pursuant to s.226 of the Act, the Agreement is terminated. The termination will come into effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE411049  PR739496>

Details
AGLC
Spotless Facility Services Pty Ltd T/A Spotless [2022] FWCA 980
Case
[2022] FWCA 980
Decision Date

CaseChat Overview and Summary

The case involved Spotless Facility Services Pty Ltd, trading as Spotless, and the relevant union. The matter was heard in the Fair Work Commission, where Spotless sought termination of the Spotless Remote Sites Onshore Enterprise Agreement 2014. The dispute centred on the economic viability of the enterprise agreement, particularly in the context of the business operations of Spotless.

The legal issues before the Commission were whether the enterprise agreement was no longer suitable due to changes in the economic circumstances of the parties and if the termination was fair and reasonable. Spotless argued that the economic conditions had deteriorated significantly, making the agreement unsustainable. The union contested this, asserting that the changes were not drastic enough to warrant termination and that the agreement should remain in force.

The Commission considered the evidence presented by both parties regarding the economic conditions and their impact on the agreement. It was noted that there had been significant changes in the industry, leading to increased operational costs and reduced profitability. The Commission concluded that the economic circumstances had indeed changed to such an extent that the enterprise agreement was no longer suitable. The termination was deemed fair and reasonable given the substantial and ongoing adverse economic conditions faced by Spotless.

The Fair Work Commission ordered the termination of the Spotless Remote Sites Onshore Enterprise Agreement 2014, effective from a specified date. The decision was based on the evidence of changed economic circumstances and the fairness of the termination process. This ruling allows Spotless to implement new terms and conditions in accordance with the relevant industrial instruments.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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