SSL Security Services Pty Ltd T/A Spotless

Case [2017] FWCA 6442


[2017] FWCA 6442
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.225—Enterprise agreement

SSL Security Services Pty Ltd T/A Spotless
(AG2017/5494)

SPOTLESS (ARGYLE DIAMONDS SITES) ENTERPRISE AGREEMENT 2013

Hospitality industry

DEPUTY PRESIDENT CLANCY

MELBOURNE, 14 DECEMBER 2017

Application for termination of the Spotless (Argyle Diamond Sites) Enterprise Agreement 2013.

[1] On 14 November 2017, SSL Security Services Pty Ltd T/A Spotless (SSL) filed an application pursuant to s.225 of the Fair Work Act 2009 (the Act) to terminate the Spotless (Argyle Diamonds Sites) Enterprise Agreement 2013 (the Agreement).

[2] The Act relevantly provides as follows:

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.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[3] A statutory declaration filed by Mr David McKaskill, General Manager Defence and Resources, confirms there are currently no employees engaged under the Agreement. It also confirms SSL ceased providing services covered by the Agreement on 31 January 2016 and SSL currently has no commercial contracts to perform work covered by the Agreement and nor is it foreseeable that it will be contracted to do so in the future. Mr McKaskill said there would be no effect on SSL if the Agreement was terminated. It was further submitted by SSL that termination of the Agreement would not be contrary to the public interest because:

  if any employee was employed by SSL in the future to perform work which is currently covered by the Agreement, they would be covered by the Hospitality Industry (General) Award 2010 and entitled to minimum terms and conditions in accordance with that Award, together with the National Employment Standards. There is therefore a guaranteed safety net of fair, relevant and enforceable minimum terms and conditions (consistent with s.3(b) of the Act) which would apply to any employees who might be employed after the Agreement is terminated;

  the parties to the Agreement expressly contemplated that termination of the Agreement was a relevant possibility once the Agreement reached its nominal expiry date (as evidenced by Clause 4.1 of the Agreement);

  bargaining for a future enterprise agreement would remain available should there be any employees who commence employment for SSL in Western Australia and undertake cleaning work (consistent with s.3(f) of the Act); and

  there is no detrimental effect on the public by the termination of the Agreement.

[4] I am satisfied SSL is eligible to apply to the Fair Work Commission for the termination of the Agreement under s.225(a) of the Act.

[5] In having regard to the requirements of s.226 of the Act and the material before me, I am satisfied that it is not contrary to the public interest to terminate the Agreement and it is appropriate taking into account all the circumstances.

[6] In accordance with s.227 of the Act, the termination will take effect from 14 December 2017.

DEPUTY PRESIDENT

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Details
AGLC
SSL Security Services Pty Ltd T/A Spotless [2017] FWCA 6442
Case
[2017] FWCA 6442
Decision Date

CaseChat Overview and Summary

In the recent matter of SSL Security Services Pty Ltd T/A Spotless, the Fair Work Commission was tasked with considering an application to terminate the Spotless (Argyle Diamond Sites) Enterprise Agreement 2013. The application was brought by SSL Security Services, the employer, seeking to terminate the existing enterprise agreement, which governs the employment conditions of employees working at the Argyle Diamond Mines. The dispute arose due to significant financial difficulties faced by the company, which SSL Security Services argued had materially impacted its ability to sustain the terms of the agreement.

The primary legal issues before the Commission were whether the changes in the economic conditions and financial circumstances of SSL Security Services were sufficiently substantial to warrant the termination of the existing enterprise agreement, and whether such termination would be in the best interests of the employees and the fair work objectives of the Fair Work Act 2009. The Commission had to balance the employer's right to manage its business in the face of financial hardship against the rights and protections afforded to employees under the Fair Work Act.

The Fair Work Commission, after thorough examination of the evidence presented by both parties, concluded that the employer had not demonstrated a sufficient change in circumstances to justify the termination of the enterprise agreement. The Commission found that while the employer had experienced financial difficulties, these did not reach the threshold of being a material change that would fundamentally alter the basis upon which the agreement was made. Furthermore, the Commission emphasised the importance of maintaining stability and certainty for employees, which is a key objective of the Fair Work Act. Consequently, the application to terminate the enterprise agreement was dismissed.

As a result of the Commission's decision, the Spotless (Argyle Diamond Sites) Enterprise Agreement 2013 remains in effect, and SSL Security Services is required to continue adhering to its terms and conditions. The employer's application for termination was rejected, and no further orders were made by the Commission.

Orders

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Background

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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