| [2023] FWCA 2519 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Ventia Utility Services Pty Limited
(AG2023/2536)
VENTIA UTILITY SERVICES PTY LTD YARRA VALLEY WATER ELECTRICAL ENTERPRISE AGREEMENT 2019
| Electrical contracting industry | |
| DEPUTY PRESIDENT BELL | MELBOURNE, 14 AUGUST 2023 |
Application for termination of the Ventia Utility Services Pty Ltd Yarra Valley Water Electrical Enterprise Agreement 2019 – no employees – agreement terminated.
Ventia Utility Services Pty Limited (Applicant) has applied, pursuant to s 225 of the Fair Work Act 2009 (the Act), to terminate the Ventia Utility Services Pty Ltd Yarra Valley Water Electrical Enterprise Agreement 2019[1] (the Agreement).
The Applicant is covered by the Agreement and is entitled to make an application under s 225. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) is covered by the Agreement and was copied into the application filed by the Applicant. The Agreement reached its nominal expiry date on 31 March 2021.
Section 225 of the Act provides 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;
(c) an employee organisation covered by the agreement.”
Section 226 of the Act relevantly provides as follows:
“226 Terminating an enterprise agreement after its nominal expiry date
(1) If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:
…
(b) the FWC is satisfied that the agreement does not, and is not likely to, cover any employees; or
…
(1A) However, the FWC must terminate the enterprise agreement under subsection (1) only if the FWC is satisfied that it is appropriate in all the circumstances to do so.
(2) …
(3) In deciding whether to terminate the agreement, the FWC must consider the views of the following covered by the agreement:
(a) the employees (unless there are no employees covered by the agreement);
(b) each employer;
(c) each employee organisation (if any).
(4) In deciding whether to terminate the agreement (the existing agreement), the FWC must have regard to:
(a) whether the application was made at or after the notification time for a proposed enterprise agreement that will cover the same, or substantially the same, group of employees as the existing agreement; and
(b) whether bargaining for the proposed enterprise agreement is occurring; and
(c) whether the termination of the existing agreement would adversely affect the bargaining position of the employees that will be covered by the proposed enterprise agreement.
(5) In deciding whether to terminate the agreement, the FWC may also have regard to any other relevant matter.”
Section 226 requires consideration of the views of employees and employee organisations covered by the Agreement. The Form F24C Declaration, dated 27 July 2023 and filed on behalf of the Applicant, states there are no longer any employees covered by the Agreement, that the Agreement has no present (or future) operation, and the termination will have no effect on the Employer and no effect on employees.
On 4 August 2023 the Commission sought the views of the CEPU in relation to the application and supporting material. The union was requested to advise Chambers by no later than close of business Monday 7 August 2023 its views on termination of the Agreement, including whether the CEPU consents or objects to the application or wishes to be heard. The correspondence stated that if no views are received, the application would be determined based on the material before the Commission. No response was received from the CEPU. The employer supports the termination. I have considered these views. There being no employees, the views of the employees have not been sought.
For the purposes of s 226(4), there is no “proposed enterprise agreement” and none of the matters in that subsection are relevant to the application before me.
Based on the material before me, including that contained in the employer Declaration filed with the application, I am satisfied that the Agreement does not, and is not likely to, cover any employees, and that the requirement of s 226(1)(b) is met. I am also satisfied that it is appropriate in all the circumstances to terminate the Agreement and there were no matters drawn to my attention that would be otherwise relevant or to indicate that termination of the Agreement would not be appropriate.
Having regard to the above findings, I now terminate the Agreement. The termination will operate from 14 August 2023.
DEPUTY PRESIDENT
[1] AE504724
Printed by authority of the Commonwealth Government Printer
<AE504724 PR765108>
- AGLC
- Ventia Utility Services Pty Limited [2023] FWCA 2519
- Case
- [2023] FWCA 2519
- Decision Date
CaseChat Overview and Summary
The legal issues before the Commission were whether the Enterprise Agreement was still in force and whether it should be terminated due to the absence of employees covered by it. The primary question was whether the absence of employees negated the need for the agreement's existence.
The Fair Work Commission, after considering the arguments, concluded that the absence of employees did not automatically result in the termination of the agreement. However, the Commission determined that since there were no employees covered by the agreement, it was no longer serving any practical purpose. Therefore, the Commission decided to terminate the agreement. This decision was based on the understanding that an enterprise agreement without any employees to cover was effectively redundant.
In conclusion, the Commission terminated the Yarra Valley Water Electrical Enterprise Agreement 2019, recognising the impracticality of maintaining an agreement without any employees to whom it applies. This decision highlights the importance of having employees covered by an enterprise agreement for it to remain in force and effective.
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