Employers and their employees may agree to terminate an enterprise agreement or a transitional instrument based on agreements. An employer may require workers to approve the dismissal by voting in favour of it. 1. Despite the ongoing negotiations, a successful request for termination may be made, but after lengthy negotiations, including, in most cases, the unsuccessful use of the FWC to obtain support in the negotiations, applications have been successful. For the most part, the cessation application is generally positioned as a means of redressing a deadlock. A redundancy request is not an employer`s first point of contact when faced with difficult negotiations. It is also probably a significant investment of time and resources. The Murdoch University case included a 10-day hearing with ample evidence, including opinions from economists and other analysts. According to Full Bench, the FWC would have provided a procedure for the hearing and decision of the application and, if deemed desirable, to hold simultaneous conciliation conferences to help the parties develop a new enterprise agreement. Each of these comprehensive decisions and Murdoch, which had different real similarities, allowed the Commission to find that any decision to keep these agreements alive was contrary to the public interest. First, any agreement was the subject of intense negotiations in good faith for several years between the parties, which resulted in the abandonment of the employer`s request to terminate their contracts, as there was little chance of reaching an agreement. Second, the applicants were able to demonstrate that the agreements had a significant influence on the economic viability of the company. In Murdoch`s case, between 2013 and 2016, the university grew from a surplus of $36 million to a deficit of $5.4 million.

In other words, a loss of $39 million in 3 years. Similarly, Griffin Coal showed that the coal mine had not made money for 10 years and lost money for every tonne of coal produced. Finally, in the application of the public interest test[6], the Commission found that, in the absence of a short-term or long-term prospect of agreement, there was no obligation to keep an institution open if the impact of costs sent it to the wall. When such an application is made, the FWK must terminate the contract if it is satisfied that it is not contrary to the public interest and considers that the termination is appropriate. But first, what is an EA? The FW Act broadly defines an EA as an instrument between one or more employers in the national scheme and their employees and, in certain circumstances, a workers` union or association, as defined in the agreement. These agreements are negotiated through collective bargaining and it is necessary to do so in good faith. In both cases, it was not disputed that the likely effect of termination of enterprise agreements would make workers less employment-friendly, and the Commission found that there would be no adverse public interest in terminating enterprise agreements and that it was appropriate in all circumstances.