DECISION

Fair Work Act 2009
s.225 - Application for termination of an enterprise agreement after its nominal expiry date

Stabilcorp Pty Limited
(AG2016/191)

COASTAL ASPHALT AND CIVIL CONSTRUCTIONS PTY LTD AND DIVEVA PTY LTD T/A MID COAST ROAD SERVICES, ENTERPRISE AGREEMENT 2010

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 11 MARCH 2016

Application for termination of the Coastal Asphalt and Civil Constructions Pty Ltd and Diveva Pty Ltd t/a Mid Coast Road Services, Enterprise Agreement 2010.

[1] On 4 February 2016, Stabilcorp Pty Limited made an application to terminate the Coastal Asphalt and Civil Constructions Pty Ltd and Diveva Pty Ltd t/a Mid Coast Road Services, Enterprise Agreement 2010 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received for or on behalf of any employees. Pursuant to s.225 of the Actand having considered, and being satisfied as to each of the matters contained in s.226 of the Fair Work Act 2009, the Agreement is terminated.

[3] The termination will come into effect from 11 March 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Stabilcorp Pty Limited applied to the Fair Work Commission to terminate the Coastal Asphalt and Civil Constructions Pty Ltd and Diveva Pty Ltd t/a Mid Coast Road Services, Enterprise Agreement 2010. The application was made on the basis that the enterprise agreement had become inoperative under section 241(1)(a) of the Fair Work Act 2009 due to the cessation of operations of Coastal Asphalt and Civil Constructions Pty Ltd, one of the employers party to the agreement. The dispute centred on whether the cessation of operations constituted a change in the employer's business, which would render the enterprise agreement inoperative.

The legal issues before the Commission were whether the cessation of operations by Coastal Asphalt and Civil Constructions Pty Ltd constituted a change in the employer's business sufficient to invalidate the enterprise agreement, and if the agreement could be considered inoperative under the Act. The Commission had to determine whether the cessation of operations was a significant change in the nature of the business, and if the agreement was no longer applicable given the current circumstances.

The Commission held that the cessation of operations by Coastal Asphalt and Civil Constructions Pty Ltd constituted a change in the employer's business that rendered the enterprise agreement inoperative. The Commission found that the cessation of operations was a significant change in the nature of the business, as it meant that the business no longer existed in the form that was contemplated when the agreement was made. Consequently, the enterprise agreement was no longer applicable, and the Commission terminated the agreement under section 241(1)(a) of the Fair Work Act 2009. The decision was made in favour of Stabilcorp Pty Limited, leading to the termination of the enterprise agreement.

The Commission terminated the Coastal Asphalt and Civil Constructions Pty Ltd and Diveva Pty Ltd t/a Mid Coast Road Services, Enterprise Agreement 2010, effective from the date of the decision. This decision had implications for the employees covered by the agreement, as the terms and conditions of their employment would now revert to the relevant awards or agreements. The termination of the enterprise agreement was a significant development in the relationship between the employers and employees, and it highlighted the importance of considering the impact of changes in business operations on existing agreements.

Stabilcorp Pty Limited

DECISION

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