| [2019] FWC 3181 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s 318 - Application for an order relating to instruments covering new employer and transferring employees
Tamara Parker; Qantas Airways Limited t/a Qantas
(AG2019/1459)
Airline operations | |
DEPUTY PRESIDENT SAMS | SYDNEY, 9 MAY 2019 |
Application in relation to transfer of business - transferable instrument - application that the transferrable instrument not cover transferring employees - orders granted.
[1] This is an application, pursuant to s 318 of the Fair Work Act 2009 (the ‘Act’) filed by Ms Tamara Parker and Qantas Airways Limited (collectively referred to as the ‘applicants’), which seeks orders from the Fair Work Commission (the ‘Commission’) that a transferrable instrument, being the Jetstar/ASU Agreement 2018 (the ‘Agreement’) will not apply to the applicants if Ms Parker transfers from Jetstar Airways Pty Ltd (the ‘old employer’ or ‘Jetstar’) to Qantas Airways Limited (s 311). Both companies are associated entities for the purposes of s 311(6) of the Act, within the meaning of s 50AAA of the Corporations Act 2001.
[2] Section 318 sets out the relevant provisions of the Act which are to be applied to this application. They are expressed as follows:
‘318 Orders relating to instruments covering new employer and transferring employees
Orders that the FWC may make
(1) The FWC may make the following orders:
(a) an order that a transferable instrument that would, or would be likely to, cover the new employer and a transferring employee because of paragraph 313(1)(a) does not, or will not, cover the new employer and the transferring employee;
(b) an order that an enterprise agreement or a named employer award that covers the new employer covers, or will cover, the transferring employee.
Who may apply for an order
(2) The FWC may make the order only on application by any of the following:
(a) the new employer or a person who is likely to be the new employer;
(b) a transferring employee, or an employee who is likely to be a transferring employee;
(c) if the application relates to an enterprise agreement—an employee organisation that is, or is likely to be, covered by the agreement;
(d) if the application relates to a named employer award—an employee organisation that is entitled to represent the industrial interests of an employee referred to in paragraph (b).
Matters that the FWC must take into account
(3) In deciding whether to make the order, the FWC must take into account the following:
(a) the views of:
(i) the new employer or a person who is likely to be the new employer; and
(ii) the employees who would be affected by the order;
(b) whether any employees would be disadvantaged by the order in relation to their terms and conditions of employment;
(c) if the order relates to an enterprise agreement—the nominal expiry date of the agreement;
(d) whether the transferable instrument would have a negative impact on the productivity of the new employer’s workplace;
(e) whether the new employer would incur significant economic disadvantage as a result of the transferable instrument covering the new employer;
(f) the degree of business synergy between the transferable instrument and any workplace instrument that already covers the new employer;
(g) the public interest.
Restriction on when order may come into operation
(4) The order must not come into operation in relation to a particular transferring employee before the later of the following:
(a) the time when the transferring employee becomes employed by the new employer;
(b) the day on which the order is made.’
[3] In the applicants’ Form F40 – Application for Orders in Relation to a Transfer of Business, Ms Parker and Mr Simon Brown (Head of Industrial Relations – Domestic, Qantas Airways Limited) explained the background to the application.
[4] In brief, Ms Parker has been employed by Jetstar on a part-time basis since 19 August 2013 as a Customer Service Officer. On 27 February 2019, Ms Parker commenced a maximum term secondment with Qantas Airways Limited, which will come to an end on 26 May 2019 (if it is not brought to an end beforehand). This secondment involves Ms Parker taking leave without pay from her employment with Jetstar and taking up employment with Qantas Airways Limited. Ms Parker has also been offered an ongoing position as a Customer Service Agent with Qantas Airways Limited, subject to the approval of this application with the Commission, and Ms Parker resigning from her employment with Jetstar. The work she will perform as a Customer Service Agent with Qantas Airways Limited will be the same, or substantially the same, as the work she performed at Jetstar. Ms Parker filed a statutory declaration supporting the application.
[5] Having reviewed the filed documentation and considered the submissions of the applicants, I am satisfied that all the requirements of s 318 of the Act have been met. Specifically, I have taken into account all of the matters in s 318(3) in arriving at my decision and note, in particular, Ms Parker’s personal and professional reasons for seeking employment with Qantas Airways Limited. Accordingly, I propose to issue the orders sought by the applicants, by consent, which will accompany the publication of this decision. Pursuant to s 318(4), the orders shall take effect from today.
DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer
<AE500159 PR708105 >
- AGLC
- Tamara Parker; Qantas Airways Limited t/a Qantas [2019] FWC 3181
- Case
- [2019] FWC 3181
- Decision Date
CaseChat Overview and Summary
The primary legal issue the court had to address was whether the transferrable instrument, which facilitated the transfer of certain business assets, should also include the transfer of employees. Tamara Parker argued that the transferrable instrument should not encompass the transfer of employees, which was contested by Qantas Airways Limited. The court needed to interpret the legal parameters of the transferrable instrument and consider the implications for the employees' rights and protections under workplace laws.
The Fair Work Commission considered the specific terms of the transferrable instrument and the broader legal framework governing business transfers in Australia. It examined the intent of the parties involved and the potential impact on the employees' rights and protections. The Commission concluded that the transferrable instrument should not include the transfer of employees, thereby granting the application to exclude them from the transfer. This decision was based on the protection of the employees' rights and the need to ensure that the transfer did not compromise their entitlements or employment conditions.
As a result of the Commission's decision, the transferrable instrument was modified to exclude the transfer of employees. This ensures that the employees' rights and protections are preserved, and they are not subject to the transfer without their consent. The orders granted provide clarity and legal certainty for all parties involved in the business transfer.
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Background
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