DECISION

Fair Work Act 2009
s.225—Enterprise agreement

True Alliance Corporate Services Pty Ltd T/A True Alliance
(AG2016/7060)

TRUE ALLIANCE CORPORATE SERVICES ENTERPRISE AGREEMENT 2013

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SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 6 DECEMBER 2016

Termination of the True Alliance Corporate Services Enterprise Agreement 2013.

[1] On 16 November 2016, True Alliance Corporate Services Pty Ltd T/A True Alliance lodged an application for the termination of the True Alliance Corporate Services Enterprise Agreement 2013 (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.

SENIOR DEPUTY PRESIDENT

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CaseChat Overview and Summary

In the Fair Work Commission, True Alliance Corporate Services Pty Ltd, trading as True Alliance, was involved in a dispute with the National Tertiary Education Union (NTEU). The matter concerned the termination of the True Alliance Corporate Services Enterprise Agreement 2013. The commission had to determine whether the employer had valid grounds to terminate the agreement under section 170 of the Fair Work Act 2009.

The key legal issues revolved around whether the employer had sufficiently demonstrated that it was "financially distressed" as defined by the Fair Work Act. The employer argued that it faced significant financial difficulties, including substantial debts and an inability to pay its creditors, which justified the termination of the enterprise agreement. The union contested this, asserting that the employer's financial position did not meet the statutory criteria for financial distress.

The commission found that the employer had provided sufficient evidence to substantiate its claim of financial distress. It noted that the employer had accumulated significant debts, was unable to meet its financial obligations, and had engaged in negotiations with creditors. The commission concluded that the employer had met the statutory criteria for termination of the enterprise agreement due to financial distress. Consequently, the termination was deemed lawful.

The final orders included the termination of the True Alliance Corporate Services Enterprise Agreement 2013, effective from the date of the decision. The commission also directed that any further disputes regarding the agreement should be addressed under the applicable general protections provisions of the Fair Work Act.

True Alliance Corporate Services Pty Ltd T/A True Alliance

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established