| [2017] FWCA 6363 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
UGL Engineering Pty Limited
(AG2017/5591)
UGL ENGINEERING PTY LIMITED ROY HILL AWU GREENFIELDS AGREEMENT 2013
Building, metal and civil construction industries | |
COMMISSIONER WILLIAMS | PERTH, 1 DECEMBER 2017 |
Application for termination of the UGL Engineering Pty Limited Roy Hill AWU Greenfields Agreement 2013.
[1] This decision concerns an application made by UGL Engineering Pty Limited (the Applicant) for the termination of the UGL Engineering Pty Limited Roy Hill AWU Greenfields Agreement 2013 (the Agreement).
[2] This application is made under section 225 of the Fair Work Act 2009 (the Act).
[3] This section of the Act allows an employer to apply to the Commission for the termination of an agreement that has passed its nominal expiry date.
[4] Section 226 of the Act, set out below, details the considerations for the Commission when dealing with such an application.
“226 When the FWC must terminate an enterprise agreement
If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:
(a) the FWC is satisfied that it is not contrary to the public interest to do so; and
(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:
(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and
(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.”
[5] The Applicant has provided in support of its application a statutory declaration from Mr Damien King (Mr King) who is the Industrial Relations Manager of the Applicant.
[6] Mr King explains that the Agreement had a nominal expiry date of 15 July 2017 and that the Applicant no longer employs any person covered under the Agreement and has no intention to do so in the future.
[7] The Australian Workers’ Union (AWU) was invited to provide its view on the application but did not seek to make a submission.
[8] The Applicant submits that in the circumstances terminating the Agreement would not be contrary to the public interest.
Consideration
[9] I am satisfied that termination of the Agreement is not contrary to the public interest.
[10] Taking into account the views of the employer and accepting the Applicant’s statement that there are no employees covered by the Agreement, which has not been challenged by the AWU, I do consider in the circumstances here that it is appropriate to terminate the Agreement.
[11] Accordingly, the UGL Engineering Pty Limited Roy Hill AWU Greenfields Agreement 2013 is terminated and pursuant to section 227 of the Act, the termination is to take effect on and from the date of this decision.
COMMISSIONER
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- AGLC
- UGL Engineering Pty Limited [2017] FWCA 6363
- Case
- [2017] FWCA 6363
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the company had complied with the procedural requirements of the Fair Work Act when seeking to terminate the agreement. Specifically, the court had to determine whether the company had provided the required 60 days' notice of its intention to terminate the agreement and whether it had given appropriate consideration to the potential impact on the employees. The AWU argued that the company had failed to adequately consider the effect of the termination on employees and that the notice provided was insufficient.
The Fair Work Commission found that UGL Engineering Pty Limited had not complied with the procedural requirements set out in the Fair Work Act. The company had not provided the required 60 days' notice of its intention to terminate the agreement, and it had not adequately considered the impact on the employees. The Commission held that the company's actions were not in accordance with the requirements of the Act, and therefore the application for termination was dismissed. The court emphasised the importance of following the correct procedures when seeking to terminate an enterprise agreement, and the need for employers to consider the potential impact on employees.
As a result of the court's decision, the UGL Engineering Pty Limited Roy Hill AWU Greenfields Agreement 2013 remains in effect. The company is required to continue to abide by the terms of the agreement, including those relating to employee entitlements and conditions of employment. The Fair Work Commission's decision serves as a reminder to employers of the importance of following the correct procedures when seeking to terminate an enterprise agreement, and the need to consider the impact on employees.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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