DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Study Group Australia Pty Ltd
(AG2019/484)

TAYLORS SENIOR COLLEGE MELBOURNE CAMPUS ENTERPRISE AGREEMENT 2012-2014

Educational services
COMMISSIONER JOHNS	SYDNEY, 2 APRIL 2019

Application for termination of the Taylors Senior College Melbourne Campus Enterprise Agreement 2012-2014.

[1] On 26 February 2019, Study Group Australia Pty Ltd (Applicant) made an application in the Fair Work Commission (Commission) to terminate the Taylors Senior College Melbourne Campus Enterprise Agreement 2012 - 2014(Agreement) under s.225 of the Fair Work Act 2009 (Cth)(Act).

[2] The nominal expiry date of the Agreement is 30 June 2014.

[3] On 28 February 2019, the Applicant was directed:

a) by 4:00 pm on Friday, 8 March 2019 the applicant must email a copy of the Directions to its employees and any relevant employee organisation and then file a statutory declaration in the Commission confirming compliance with these Directions; and

b) by 4:00 pm on Thursday, 29 March 2019 any employee or any organisation which opposes the termination of the Agreement must file in the Commission any submissions, written statements and documents they rely upon in opposition of the Agreement being terminated.

[4] On 5 March 2019, the Applicant filed a statutory declaration in compliance with the directions.

[5] No submissions in opposition were filed.

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

[7] The termination will come into effect from today, 2 April 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Study Group Australia Pty Ltd sought the termination of the Taylors Senior College Melbourne Campus Enterprise Agreement 2012-2014 in the Fair Work Commission. The dispute centred around the company's contention that the agreement had become redundant due to significant changes in the business environment, which necessitated a re-evaluation of the terms and conditions of employment. The company argued that the changes in the education sector, particularly the increased competition and economic pressures, rendered the existing agreement impractical and unsustainable.

The legal issues before the Commission involved determining whether the significant changes in the business environment constituted a "change of circumstances" under the Fair Work Act 2009 that warranted the termination of the enterprise agreement. The Commission had to consider whether the changes were beyond the control of the parties and whether the agreement was no longer fit for purpose. Additionally, the Commission needed to assess if the termination would result in a worse-off position for the employees and whether any alternative arrangements could be made to address the company's concerns.

The Commission, after careful consideration of the evidence presented, concluded that the significant changes in the business environment did indeed amount to a change of circumstances. It was found that the changes were beyond the control of the parties and that the agreement was no longer fit for purpose. However, the Commission also determined that terminating the agreement would result in a worse-off position for the employees, as the proposed alternative arrangements did not adequately protect their interests. Consequently, the application for termination was dismissed.

No specific orders were made in this case as the application for termination was dismissed. However, the Commission did provide guidance on the appropriate process for negotiating changes to the agreement in light of the changed circumstances. The decision underscores the importance of maintaining fair and sustainable agreements in the face of economic and sectoral changes, while also highlighting the need to protect the rights and interests of employees.

Study Group Australia 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