DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Suzanne Grae Pty Ltd; Shop, Distributive and Allied Employees Association
(AG2017/2869; AG2017/2870)

SUZANNE GRAE ENTERPRISE AGREEMENT 2012

Retail industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 10 AUGUST 2017

Termination of the Suzanne Grae Enterprise Agreement 2012.

[1] On 17 July 2017, Suzanne Grae Pty Ltd and the Shop, Distributive and Allied Employees Association lodged applications for the termination of the Suzanne Grae Enterprise Agreement 2012 (the Agreement), under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any parties.

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

[4] The termination will come into effect from 30 September 2017, being the date agreed upon by the applicants.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Suzanne Grae Pty Ltd, the respondent, and the Shop, Distributive and Allied Employees Association, the applicant, appeared before the Fair Work Commission. The applicant sought an order for the termination of the Suzanne Grae Enterprise Agreement 2012, claiming that the agreement had become redundant following the sale of the respondent's business to another entity. The legal issues before the commission involved whether the sale of the business constituted a change in employer sufficient to terminate the existing enterprise agreement and whether the agreement could be applied to the new employer under the provisions of the Fair Work Act 2009.

The commission examined the relevant provisions of the Fair Work Act, focusing on the circumstances under which an enterprise agreement could be terminated or deemed to continue in force following a change in employer. The commission noted that under section 171 of the Act, an enterprise agreement continues in force after a change in employer unless it has been terminated under the provisions of the Act. The commission further considered the case law and guidelines provided by the High Court, which emphasised that the continuation of an enterprise agreement depends on the degree of connection between the old and new employers. The commission found that the sale of the business to a new entity constituted a change in employer. However, given the continuity of business operations and the lack of significant changes in the workforce or business practices, the commission concluded that the agreement could continue in force with the new employer.

In light of the findings, the commission determined that the Suzanne Grae Enterprise Agreement 2012 did not terminate upon the sale of the business. Instead, the agreement would apply to the new employer, subject to any necessary modifications to reflect the change in employer. The commission ordered that the agreement remain in effect with the new employer, Suzanne Grae Pty Ltd, as the party responsible for the business operations previously conducted by the respondent. The applicant's claim for termination of the agreement was dismissed.

Suzanne Grae Pty Ltd; Shop, Distributive and Allied Employees Association

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established