Top End Association for Mental Health Inc T/A TeamHEALTH

[2020] FWC 3041

[2020] FWC 3041

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s 318 - Application for an order relating to instruments covering new employer and transferring employees

Top End Association for Mental Health Inc T/A TeamHEALTH
(AG2020/1451)

Northern Territory
DEPUTY PRESIDENT SAMS	SYDNEY, 10 JUNE 2020

Application for an order relating to instruments covering new employer and transferring employees.

[1] This is an application, pursuant to s 318 of the Fair Work Act 2009 (the ‘Act’) filed by Top End Association for Mental Health Inc t/a TeamHEALTH (the ‘applicant’), which seeks orders from the Fair Work Commission (the ‘Commission’) that a transferrable instrument, being the Northern Territory Public Sector 2017 - 2021 Enterprise Agreement [AE427964] will not apply to the applicant and its transferring employees at the applicant’s Banksia House site, if they transfer from Top End Health Services, a subsidiary of the Northern Territory Department of Health (the ‘old employer’) to the applicant. There is a connection between the applicant and the old employer for the purposes of s 311(5) of the Act.

[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 applicant’s Form F40 – Application for Orders in Relation to a Transfer of Business, Ms Nicole Dunn, Nicole Dunn Lawyers Pty Ltd, Legal Representative for the applicant, explained the background to the application, and supported by a signed statement of Ms Robyn Lacey, Human Resources Manager of the applicant.

[4] In brief, the applicant will take over the operations of Banksia House from the old employer on 1 July 2020. The transferring employees will perform work in their new employment that is substantially the same as that currently performed with the old employer. Upon the new employer taking over the operations of the old employer on 1 July 2020, the applicant will introduce a new operations system, which aims to create consistence between the existing roles with the applicant, and transferring employees who wish to accept a role with the applicant upon commencing operations at Banksia House. The application also states that the transferring employees will not be disadvantaged if the Commission grants the order, as the terms and conditions the applicant is prepared to offer will be more beneficial.

[5] Having reviewed the filed documentation and considered the submissions of the applicant, I am satisfied that 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; noting, in particular, that the transferring employees will have more favourable terms and conditions of employment when engaged by the applicant. Accordingly, I propose to issue the order sought by the applicant. An order to that effect will accompany the publication of this decision. Pursuant to s 318(4), the order shall take effect from today.

DEPUTY PRESIDENT

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<AE427964  PR720081>