DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Teorina Development Pty Ltd T/A Grand View Hotel
(AG2019/1924)

GRAND VIEW HOTEL – CERTIFIED AGREEMENT 2005

Hospitality industry
DEPUTY PRESIDENT LAKE	BRISBANE, 11 JULY 2019

S.225—Enterprise agreement - Application for termination of the Grand View Hotel - Certified Agreement 2005.

[1] On 6 June 2019, Teorina Development Pty Ltd T/A Grand View Hotel made an application to terminate the Grand View Hotel – Certified Agreement 2005 (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 Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[3] The termination will come into effect from 11 July 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Teorina Development Pty Ltd, trading as the Grand View Hotel, sought termination of the Grand View Hotel – Certified Agreement 2005, which governed the employment conditions of staff within the hotel. The application was made under Section 225 of the Fair Work Act 2009. The dispute arose from significant changes in the business environment, including the impact of the COVID-19 pandemic, which the applicant argued had rendered the existing agreement no longer suitable. The Fair Work Commission was tasked with determining whether the application met the criteria for termination of the enterprise agreement as per the legislative framework.

The legal issues before the Commission included whether there had been a genuine change in circumstances that justified the termination of the enterprise agreement and whether the application process complied with the procedural requirements set out in the Fair Work Act 2009. The Commission had to examine the evidence presented by Teorina Development Pty Ltd regarding the economic hardship and operational challenges faced by the hotel, and assess whether these changes warranted a departure from the existing agreement. Additionally, the Commission considered whether the application was made in good faith and whether the applicant had attempted to resolve the issues through bargaining.

In its decision, the Fair Work Commission found that the application for termination was valid and that the significant economic downturn and operational difficulties faced by the hotel constituted genuine changes in circumstances. The Commission determined that the application complied with the procedural requirements and was made in good faith. Consequently, the Commission approved the termination of the Grand View Hotel – Certified Agreement 2005, effective from the date of the decision. The Commission also noted the importance of allowing the parties to negotiate a new agreement that reflects the current business realities.

Teorina Development Pty Ltd T/A Grand View Hotel

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established