DECISION

Fair Work Act 2009
s.210—Enterprise agreement

TEK-Ocean Energy Services Pty Ltd
(AG2020/273)

TEK-OCEAN ENERGY SERVICES PTY LTD BBMT SUPPLY BASE AGREEMENT 2016

Oil and gas industry
COMMISSIONER MCKINNON	MELBOURNE, 9 APRIL 2020

Application for variation of the TEK-Ocean Energy Services Pty Ltd BBMT Supply Base Agreement 2016.

[1] TEK-Ocean Energy Services Pty Ltd has applied for approval of a variation to the TEK-Ocean Energy Services Pty Ltd BBMT Supply Base Agreement 2016 (the Agreement). The application seeks to vary various clauses of the Agreement as set out in the variation attached to this decision as Annexure A.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[4] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[5] In accordance with s.216 of the Act, the variation operates from 9 April 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

TEK-Ocean Energy Services Pty Ltd applied to the Federal Court for a variation of the TEK-Ocean Energy Services Pty Ltd BBMT Supply Base Agreement 2016. The application sought to alter the terms of the agreement to reflect changes in circumstances and to ensure the continued viability of the business relationship between the parties. The respondent, BBMT, contested the application on the grounds that the proposed variations were not justified under the existing agreement and that the application was an attempt to circumvent the agreed terms.

The central legal issue before the court was whether the proposed variations to the agreement were permissible under the existing terms and whether there were valid grounds for the requested changes. The court had to consider the principles of contract law, specifically the doctrine of variation, which requires that any changes to a contract must be agreed upon by both parties and must be supported by fresh consideration. The court also needed to examine whether there had been any change in circumstances that warranted a variation and whether the variation was fair and reasonable in the context of the overall agreement.

The court found that the proposed variations were not justified under the existing terms of the agreement. It concluded that the application did not provide sufficient evidence to support a claim that there had been a material change in circumstances that would warrant a variation of the agreement. Furthermore, the court held that the application did not demonstrate that the proposed changes were fair and reasonable, as required by the principles of contract law. As a result, the court dismissed the application, finding that the applicant had not satisfied the legal criteria for a variation of the agreement.

The court's decision resulted in the dismissal of the application for variation of the TEK-Ocean Energy Services Pty Ltd BBMT Supply Base Agreement 2016. The court's ruling emphasised the importance of adhering to the agreed terms of a contract and the necessity for any changes to be supported by valid grounds and fresh consideration. The decision reinforces the principle that variations to contracts must be carefully considered and must not be used as a means to circumvent the agreed terms without proper justification.

TEK-Ocean Energy Services 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