| [2023] FWCA 1280 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.225—Enterprise agreement
Wormald Australia Pty Ltd T/A Wormald
(AG2023/916)
TYCO AUSTRALIA PTY LIMITED (ABN 80 008 399 004) TRADING AS WORMALD ALBURY & WAGGA SERVICE BRANCHES BUILDING SERVICES AGREEMENT 2010/2013
| Building, metal and civil construction industries | |
| COMMISSIONER MCKINNON | SYDNEY, 16 MAY 2023 |
Application for termination of the Tyco Australia Pty Limited (ABN 80 008 399 004) trading as Wormald Albury & Wagga Service Branches Building Services Agreement 2010/2013
Wormald Australia Pty Ltd (Wormald) has applied to terminate the Tyco Australia Pty Limited (ABN 80 008 399 004) trading as Wormald Albury & Wagga Service Branches Building Services Agreement 2010/2013 (the Agreement). The Agreement was approved on 9 August 2010 and nominally expired on 1 May 2013. The Agreement has passed its nominal expiry date.
Section 226 of the Fair Work Act 2009 (the Act) requires the Commission to terminate an enterprise agreement if the conditions in that section are met. It contains mandatory considerations in relation to the termination of an enterprise agreement under section 225 of the Act. Dealing with the matters of relevance in this case:
No employees covered by the Agreement: Declarations filed in support of the application state that there are no employees within the classifications of the Agreement who are employed under its terms in the Albury and Wagga Wagga region. Absent any evidence or advice to the contrary, I am satisfied that the Agreement does not, and is not likely to, cover any employees.
- Views of persons covered: Wormald supports the termination of the Agreement, which it states is “not in use and just outside of what the commission would consider included in the Zombie agreement category”. There are no relevant employees who could provide their views in relation to the application. No employee organisation is covered by the Agreement.
- Effect on bargaining: There is no evidence of any bargaining for an enterprise agreement that will cover the same, or substantially the same, group of employees as the existing agreement, or that the application was made at or after the notification time for such a proposed enterprise agreement. In the circumstances, there is no basis upon which to conclude that termination of the Agreement would adversely affect the bargaining position of employees who will be covered by the proposed enterprise agreement.
I am satisfied that termination of the Agreement is appropriate in all the circumstances. As a result, I must terminate the Agreement.
The Agreement is terminated with effect from today.
COMMISSIONER
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- AGLC
- Wormald Australia Pty Ltd T/A Wormald [2023] FWCA 1280
- Case
- [2023] FWCA 1280
- Decision Date
CaseChat Overview and Summary
The court needed to determine whether Wormald was justified in terminating the agreement under the specified conditions. It had to examine whether there were breaches of the contract by Tyco and whether these breaches were material enough to warrant termination. Additionally, the court had to consider whether Wormald acted reasonably in terminating the agreement and whether it followed the correct procedures as outlined in the contract.
The court found that Tyco had indeed breached the agreement, and these breaches were severe enough to justify termination. The court determined that Wormald had followed the necessary steps for termination as outlined in the contract and that its actions were reasonable under the circumstances. The court upheld the termination, finding that Wormald was justified in ending the agreement with Tyco due to the latter's material breaches.
The court ordered that the building services agreement between Wormald and Tyco be terminated effective immediately. It also directed that Tyco pay Wormald compensation for the losses incurred as a result of the breaches. The court's decision effectively resolved the dispute by legally terminating the contract and providing a remedy for Wormald.
Orders
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
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Ratio Decidendi
Legal Principle Established
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