These decisions show that under the Fair Work Act 2009 (Cth), there are alternatives to the traditional negotiation of an alternative enterprise agreement, which is increasingly available to employers as long as a burning platform and the ability to prove traditional bargaining efforts are demonstrated. As a result, a fundamental step in an EA`s life cycle is that the employer determines how it will deal with the EA once it reaches its nominal expiration date. Given the risks associated with the continued implementation of the agreement, employers must be careful to avoid situations where workers are disadvantaged from modern minimum requirements or where the terms of the agreement become unattractive to the employer due to emerging economic conditions. On appeal, FWC Full Bench decided that the FWC at trial was wrongly delaying the decision of the termination application. Full Bench found that the FWC`s approach was not consistent with the Aurizon principle, i.e. that dismissal was not inconsistent with negotiations on good faith undertakings. While it is not always possible to avoid legal action against a person under this section, while the FWC has the utmost diligence in dealing with labour relations, the FWC has the power to reduce the penalties to be paid by an individual when it believes that any individual`s involvement in the breach was not intentional. A final point in the treaties is that it may be desirable for certain issues to be dealt with in employer policy rather than in a formal contract. The policy can be changed unilaterally by an employer if it grants workers an appropriate termination, while contracts can only be amended by agreement (explicit or implied). Aurizon asked the Commission to terminate 14 enterprise agreements that had exceeded their nominal expiry dates. At the time of the hearing, two of these agreements had been replaced by new agreements and notification was made only with respect to the other 12 agreements.
Second, an employer`s decision to terminate an agreement is expected to generate strong opposition from unions and workers. Employers who see the termination of their expired business contract as an option to break a deadlock in negotiations or to achieve a transformative change in their business must accept that this strategy is very likely to face such opposition. On August 29, 2017, the Fair Work Commission decided to terminate the operating contract for Murdoch University, which employs approximately 3,500 people. One of the most important aspects of this decision is that historically there has been an unwritten expectation that, if negotiations are stalled, the current enterprise agreement would remain without exception the status quo until an agreement is reached. There are a number of outdated examples where agreements have been denounced when they are true relics of a previous labour context. The most obvious cases occurred in which no workers remained under the agreement.