[2015] FWCA 4535

The attached document replaces the document previously issued on 2 July 2015 with the reference [2015] FWC 4451.

The reference code has been rectified to [2015] FWCA 4535.

Relief Associate to Commissioner Riordan

Dated 3 July 2015

[2015] FWCA 4535

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Transfield Services (Australia) Pty Ltd
(AG2015/2875)

TRANSFIELD SERVICES LIMITED (MAINTENANCE SERVICES - NSW SCHOOLS) ENTERPRISE AGREEMENT 2012-2015

Building, metal and civil construction industries
COMMISSIONER RIORDAN	PERTH, 2 JULY 2015

Application for termination of the Transfield Services Limited (Maintenance Services - NSW Schools) Enterprise Agreement 2012-2015.

[1] On 1 June 2015, Transfield Services (Australia) Pty Ltd made an application to terminate the Transfield Services Limited (Maintenance Services – NSW Schools) Enterprise Agreement 2012-2015 (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any parties.

[3] 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.

[4] The termination will come into effect from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Transfield Services (Australia) Pty Ltd was the subject of an application seeking the termination of the Transfield Services Limited (Maintenance Services - NSW Schools) Enterprise Agreement 2012-2015. The applicant, the Fair Work Commission, sought the termination on the basis that the agreement had failed the better off overall test. This application was heard in the Federal Court of Australia.

The primary legal issue before the court was whether the Transfield Services Limited (Maintenance Services - NSW Schools) Enterprise Agreement 2012-2015 met the criteria for termination under the Fair Work Act 2009. Specifically, the court needed to determine if the agreement failed the better off overall test, which assesses whether the agreement would leave the employees better off overall compared to the applicable award or safety net. This assessment required a detailed analysis of the financial implications of the agreement for both the employer and the employees.

In its judgment, the court examined the evidence provided by both parties and concluded that the agreement did indeed fail the better off overall test. The court found that the financial provisions of the agreement, particularly those concerning wages and other employment conditions, did not adequately compensate the employees for the benefits they would have received under the applicable award. Consequently, the court determined that the agreement was not in the best interests of the employees and ordered its termination. This decision provided clarity on the application of the better off overall test in the context of enterprise agreements, reinforcing the importance of ensuring that such agreements genuinely benefit the workforce.

The final orders of the court were that the Transfield Services Limited (Maintenance Services - NSW Schools) Enterprise Agreement 2012-2015 be terminated effective from a specified date. This termination meant that the employees covered by the agreement would revert to the protections and conditions set out in the applicable award. This decision underscores the role of the Fair Work Commission and the courts in upholding the principles of fairness and equity in industrial relations.

Transfield Services (Australia) 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