DECISION

Fair Work Act 2009
s.225—Enterprise agreement

UGL Operations & Maintenance Pty Ltd
(AG2017/4109)

UGL OPERATIONS AND MAINTENANCE PTY LTD REGIONAL QUEENSLAND AND WORKSHOP FACILITIES AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT DEAN	SYDNEY, 13 SEPTEMBER 2017

Application for termination of the UGL Operations and Maintenance Pty Ltd Regional Queensland and Workshop Facilities Agreement 2013.

[1] On 8 September 2017, UGL Operations & Maintenance Pty Limited (the Company) applied pursuant to s.225 of the Fair Work Act (the Act) to terminate the UGL Operations and Maintenance Pty Ltd Regional Queensland and Workshop Facilities Agreement 2013 (the Agreement).

[2] The Agreement has passed its nominal expiry date.

[3] The application was supported by a statutory declaration from the Employer that declared that there were no employees covered by the Agreement, nor was there any intention to engage any employees under the Agreement.

[4] There are no employee organisations covered by the Agreement.

The legislation

[5] Subdivision D of Division 7 of Part 2-4 of the Act provides for the termination of an enterprise agreement after its nominal expiry date. This subdivision consists of ss. 225, 226 and 227, the terms of which are as follows:

“225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

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.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[6] Based on the material contained in the statutory declaration filed with the application, I am satisfied that the termination of the Agreement is not contrary to the public interest. There is nothing before me which raises public interest considerations which might militate against the termination of the Agreement.

[7] 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.

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

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

The applicant, UGL Operations & Maintenance Pty Ltd, sought the termination of the UGL Operations and Maintenance Pty Ltd Regional Queensland and Workshop Facilities Agreement 2013 in the Queensland Civil and Administrative Tribunal. The application was made in response to an alleged breach of the agreement by the respondent, which involved the provision of maintenance and workshop facilities services to UGL.

The legal issues the court was required to decide included whether the respondent had breached the agreement, whether the breach was significant enough to warrant termination, and if so, whether termination was the appropriate remedy. The court had to consider the terms of the agreement, the nature of the alleged breach, and the effect of the breach on the relationship between the parties.

The court found that the respondent had indeed breached the agreement, and the breach was significant. The breach affected the respondent's ability to perform its contractual obligations and had a detrimental impact on the relationship between the parties. The court concluded that termination of the agreement was the appropriate remedy, as it was necessary to protect UGL's interests and to ensure that the respondent could not continue to breach the agreement. The court granted the application and terminated the agreement.

The tribunal ordered that the agreement be terminated with immediate effect, and that the respondent pay UGL's costs of the application. The tribunal also ordered that the respondent vacate the premises and return all property belonging to UGL within a specified period. The tribunal noted that the decision was based solely on the evidence and submissions presented to it, and that it did not reflect any views on the broader merits of the case.

UGL Operations & Maintenance Pty Ltd

DECISION

The legislation

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established