Spotless Facility Services Pty Ltd T/A Spotless Summary

[2022] FWC 601

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)

DEPUTY PRESIDENT CROSS

SYDNEY, 18 MARCH 2022

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

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.

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

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.

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

Determination

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.
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

CaseChat Overview and Summary

Spotless Facility Services Pty Ltd (the Applicant) sought approval from the Fair Work Commission to terminate the Spotless Remote Sites Onshore Enterprise Agreement 2014 (the Agreement), which had passed its nominal expiry date of 1 September 2018. The application was made under section 225 of the Fair Work Act 2009, which allows for the termination of an enterprise agreement after its nominal expiry date by one or more of the employers covered by the agreement. The Applicant is the employer covered by the Agreement, and no employees or employee organisations are covered by the Agreement.

The legal issues in this case revolved around whether the termination of the Agreement was appropriate under section 226 of the Act, which requires the Commission to consider the views of the employees, employers, and employee organisations covered by the agreement, as well as the circumstances of those parties, including the likely effect that the termination will have on each of them. The Commission also had to determine whether terminating the Agreement would be contrary to the public interest.

The Deputy President found that the requirements of section 226 of the Act had been met, and that it was appropriate to terminate the Agreement. The Deputy President considered that terminating the Agreement would not be contrary to the public interest. Therefore, pursuant to section 226 of the Act, the Agreement is terminated, effective from the date of the decision.

This decision highlights the importance of employers keeping track of the expiry dates of their enterprise agreements and ensuring that they are aware of their rights and obligations under the Fair Work Act when it comes to terminating such agreements. Employers should also be mindful of the potential consequences of terminating an enterprise agreement, including the impact on their employees and the need to negotiate new terms and conditions of employment.

Spotless Facility Services Pty Ltd T/A Spotless

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established