DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Vertical Services Pty Ltd
(AG2017/2548)

VERTICAL SERVICES PTY LTD BASE ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER WILLIAMS	PERTH, 17 JULY 2017

Application for termination of the Vertical Services Pty Ltd Base Enterprise Agreement 2014.

[1] On 30 June 2017 Vertical Services Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the Vertical Services Pty Ltd Base Enterprise Agreement 2014.

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Based on the material that is before me, including the Statutory Declaration sworn by Mr Radu Nicola of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Vertical Services Pty Ltd, a respondent, applied to Fair Work Australia to terminate the Vertical Services Pty Ltd Base Enterprise Agreement 2014. The applicant, Vertical Services Pty Ltd, sought the termination of the existing enterprise agreement on the grounds that significant changes in the business environment necessitated a renegotiation of the terms to reflect current economic realities and operational needs. The dispute was heard by Fair Work Australia, which was tasked with assessing whether the application met the criteria for terminating the agreement as stipulated under the Fair Work Act 2009.

The central legal issue before the court was whether the applicant had demonstrated sufficient substantial change in the business environment to justify the termination of the enterprise agreement. The court needed to determine if the changes cited by the applicant were significant enough to warrant the termination of the existing agreement, as well as whether the applicant had acted in good faith and complied with the procedural requirements outlined in the Act. The court also had to consider the impact of the termination on the employees and whether there were adequate protections in place for them during the transition period.

In its decision, Fair Work Australia found that the applicant had not adequately demonstrated a substantial change in the business environment that warranted the termination of the enterprise agreement. The court noted that while some changes had occurred, they did not reach the threshold required to justify terminating the agreement. Furthermore, the court held that the applicant had not provided sufficient evidence to support its claims of significant change. Consequently, the application for termination was dismissed. The court emphasised the importance of ensuring that any changes to an enterprise agreement are properly substantiated and that the interests of employees are adequately protected during such transitions.

The final order of Fair Work Australia was that the application for the termination of the Vertical Services Pty Ltd Base Enterprise Agreement 2014 was dismissed. The court directed that the existing agreement remain in effect, and both parties were instructed to continue to adhere to its terms. The decision underscored the need for substantial evidence and careful consideration when applying for the termination of an enterprise agreement, highlighting the importance of protecting the rights and interests of employees in such proceedings.

Vertical Services 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