Torney & Allen Pty Ltd

[2014] FWCA 1920

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Torney & Allen Pty Ltd
(AG2014/459)

TORNEY & ALLEN PTY LTD SINGLE ENTERPRISE AGREEMENT 2011

Electrical contracting industry
COMMISSIONER RIORDAN	SYDNEY, 21 MARCH 2014

Application for termination of the Torney & Allen Pty Ltd Single Enterprise Agreement 2011.

[1] In accordance with s.223 of the Fair Work Act 2009 (the Act), The Fair Work Commission approves the termination of the Torney & Allen Pty Ltd Single Enterprise Agreement 2011.

[2] The termination is effective on and from 28 March 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Torney & Allen Pty Ltd was the subject of an application for termination of its Single Enterprise Agreement 2011. The matter was heard in the Fair Work Commission (FWC). The applicant, Torney & Allen, sought to terminate the agreement due to changes in their business environment and financial difficulties. The respondents, the employees, opposed the termination, arguing that the company had not demonstrated sufficient grounds for such action.

The primary legal issues before the FWC were whether the company had established that a significant change in business circumstances had occurred and whether this warranted termination of the enterprise agreement. The FWC had to consider the criteria set out in section 241 of the Fair Work Act 2009, which provides for the termination of an enterprise agreement due to significant changes in the circumstances of the parties. This involved assessing the evidence provided by Torney & Allen regarding their financial situation and operational changes, as well as the impact of these changes on their ability to continue under the existing agreement.

The FWC found that the company had not demonstrated a sufficient change in circumstances to warrant termination of the enterprise agreement. The evidence presented by Torney & Allen did not clearly establish that the changes were significant enough to justify altering the existing terms of employment. The FWC emphasised that any changes in the business environment must be substantial and directly impact the company's ability to operate under the current agreement. Given the information presented, the FWC concluded that the company had not met the threshold for termination under section 241. Consequently, the application was dismissed.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established