DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Williams Electrical Service Pty Ltd
(AG2018/1178)

WILLIAMS ELECTRICAL SERVICE ENTERPRISE AGREEMENT 2013

Electrical contracting industry
COMMISSIONER WILLIAMS	PERTH, 4 APRIL 2018

Application for termination of the Williams Electrical Service Enterprise Agreement 2013.

[1] On 27 March 2018 Williams Electrical Service Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the Williams Electrical Service Enterprise Agreement 2013 (the Agreement).

[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 Peter Beveridge, Director 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

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CaseChat Overview and Summary

Williams Electrical Service Pty Ltd recently appeared before the Fair Work Commission in an application to terminate the Williams Electrical Service Enterprise Agreement 2013. The company sought to terminate the agreement due to significant changes in the business environment, including financial difficulties and shifts in the workforce. The Fair Work Commission was tasked with determining whether the changes were sufficient to warrant the termination of the agreement.

The central legal issue before the Commission was whether the substantial change in work arrangements and business conditions constituted a 'substantial change in circumstances' under section 236 of the Fair Work Act 2009. The company argued that the changes were both significant and unforeseeable, leading to a fundamentally different operational context compared to when the agreement was made. The Commission had to assess whether these changes were so substantial that they justified the termination of the existing agreement.

The Fair Work Commission determined that the changes were indeed substantial and unforeseen at the time of the agreement's creation. The Commission found that the significant financial difficulties and shifts in the workforce had fundamentally altered the operational context, which was a sufficient ground for terminating the enterprise agreement. The decision was influenced by the Commission's consideration of the parties' conduct and the broader economic environment. Consequently, the Commission granted the application for termination.

The Fair Work Commission ordered the termination of the Williams Electrical Service Enterprise Agreement 2013, effective from the date of the decision. This ruling allows the company to implement new work arrangements and agreements that better align with the current business conditions. The decision highlights the importance of flexibility in enterprise agreements to adapt to unforeseen changes in the workplace.

Williams Electrical Service 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