| [2023] FWC 1044 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.319 - Application for an order relating to instruments covering new employer and non-transferring employees
Women's Safety Services (South Australia) Limited T/A Women's Safety Services SA
(AG2023/873)
| Social, community, home care and disability services | |
| COMMISSIONER PLATT | ADELAIDE, 5 MAY 2023 |
Application for an order relating to instruments covering new employer and non-transferring employees.
On 29 March 2023, Women's Safety Services (South Australia) Limited T/A Women's Safety Services SA (the Applicant or the New Legal Entity) filed an application in the Fair Work Commission (the Commission) in respect of the operation of the Women's Safety Services SA & Australian Services Union (SA+NT) Enterprise Agreement SA 2021[1] (the Agreement) to non-transferring employees.
The Agreement was approved on 24 January 2022 and has a nominal expiry date of 23 January 2025.
This Application seeks pursuant to s.319(1)(b) of the Fair Work Act 2009 (the Act) that the Agreement will cover the new employer, Women’s Safety Services (South Australia) Ltd and will also cover all non-transferring employees of Women’s Safety Services SA Incorporated who perform work covered by the Agreement.
The relevant legislation
Part 2-8 of the Act describes when a transfer of business occurs and also provides for the transfer of enterprise agreements from one employer to another in a transfer of business.
Section 311(1) of the Act defines “transfer of business”, and section 312 defines the types of “transferable instrument” that may transfer from one employer to another.
Sections 317 and 319 of the Act empower the Commission to make orders in relation to a transfer of business, including orders that a transferable instrument will, or will not, cover the new employer in relation to the non-transferring employee.
Background
Women’s Safety Services SA (WSSSA) is an organisation that supports women and their children who are experiencing domestic and family violence. It employs 122 employees in the social and community services sector.
Prior to 9 February 2023, WSSSA operated as an association pursuant to Section 42(1) of the Associations Incorporation Act 1985. The legal entity employing the employees was Women’s Safety Services SA Incorporated. The Women’s Safety Services SA Incorporated and eligible employees were covered by the Agreement.
In May 2020 it was determined that the undertaking and/or operations of WSSSA would be more appropriately carried on by a company limited by guarantee under the Corporations Act 2001.
On 6 February 2023, an order was issued by the Corporate Affairs Commission that effective 9 February 2023, the Association Women’s Safety Services SA Incorporated was dissolved. All property of the Association became the property of Women’s Safety Services (South Australia) Limited (the New Legal Entity).
On 9 February 2023, all employees of WSSSA were employed by the New Legal Entity. The work performed by the employees remained unchanged and continuity of service was maintained.
Consideration
I accept that the Agreement is a transferable instrument for the purposes of s.312(1)(a) of the Act.
I am satisfied that there has been a transfer of business between Women’s Safety Services SA Incorporated and the Applicant for the purposes of s.311(1) of the Act.
On 6 April 2023, I conducted a conference, by telephone, in respect of the application. Ms Natalie Sawyer (People and Culture Advisor) appeared as the Applicant at the conference with Ms Maria Hagias (CEO). Mr Scott Cowen represented the Australian Services Union (SA & NT) [ASU]. The ASU are entitled to represent employees covered by the Agreement.
Following the conference, Directions were issued seeking the Applicant to provide a copy of its submissions to any Union and/or employee impacted by the Application and asked any party who opposed the application to advise my Chambers.
No correspondence was received opposing the Application.
On 20 April 2023, Mr Scott Cowen from the ASU advised that the Union had received a copy of the Applicant’s submissions, contending that the Agreement provides numerous terms and conditions of employment that are superior to the Social, Community, Home Care and Disability Services Industry Award 2010 and National Employment Standards that would apply to the exclusion of the Agreement to non-transferred employees if such an Order was not made by the Commission, and supported the Application.
I have considered the view of the affected employees and the Union.
There is an obvious business synergy between the former WSSSA and the Applicant.
I accept that in the absence of the order sought, the Applicant will have to administer different industrial instruments to persons performing the same work in the workplace and this will lead to inefficiencies.
I accept that the terms of the Agreement considered globally are superior to the Award and that no employee will be disadvantaged.
I have considered the expiry date of the Agreement and the Public Interest.
Having considered each of the matters outlined in s.319(3) of the Act and the material that has been filed, I am satisfied that orders pursuant to s.319(1)(b) of the Act should be made in respect of both applications. The order[2] will be issued concurrently with this decision.
COMMISSIONER
[1] [AE514698]
[2] PR761580
Printed by authority of the Commonwealth Government Printer
<AE514698 PR761576>
- AGLC
- Women's Safety Services (South Australia) Limited T/A Women's Safety Services SA [2023] FWC 1044
- Case
- [2023] FWC 1044
- Decision Date
CaseChat Overview and Summary
The central legal issue before the Commission was whether the enterprise agreement in question should be applicable to the new employer and the employees who did not transfer with the business. This required the Commission to determine whether the agreement constituted a transferable instrument under the Fair Work Act and whether the conditions of a business transfer were met. The Commission also had to consider the implications of not extending the agreement to the new employer and non-transferring employees, including potential disadvantages to employees and operational inefficiencies. Additionally, the Commission was required to balance the public interest with the specific circumstances of the case.
The Commission found that the enterprise agreement was indeed a transferable instrument under section 312(1)(a) of the Act and that a transfer of business had occurred as defined by section 311(1) of the Act. The Commission concluded that the agreement provided terms and conditions that were superior to the relevant award and national standards, and that no employee would be disadvantaged by the extension of the agreement to the new employer and non-transferring employees. The Commission also noted the operational efficiencies that would result from not having to manage multiple sets of industrial instruments for the same workforce. Having considered all relevant factors, the Commission was satisfied that the application of the agreement to the new employer and non-transferring employees was in the best interest of the parties involved.
In light of the findings, the Commission ordered that the Women's Safety Services SA & Australian Services Union (SA+NT) Enterprise Agreement SA 2021 would apply to Women's Safety Services (South Australia) Ltd and all non-transferring employees of Women’s Safety Services SA Incorporated who perform work covered by the agreement. This decision ensures continuity of employment terms and conditions, and promotes operational efficiency within the organisation.
Orders
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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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