Application for termination of The Reject Shop Agreement 2011 and The Reject Shop Agreement 2014

[1] The Shop, Distributive and Allied Employees Association (SDA) has applied to terminate The Reject Shop Agreement 2011 (2011 Agreement) and The Reject Shop Agreement 2014 (2014 Agreement) (together, the Agreements). The 2011 Agreement was approved on 27 September 2011 and nominally expired on 6 October 2014. The 2014 Agreement was approved on 22 December 2014 and nominally expired on 1 March 2018. The applications for termination are made on the basis that continued operation of the agreements would be unfair for the employees covered.

[2] 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. There are certain 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:

1. Whether continuing operation would be unfair to employees: I am satisfied on the materials that the continued operation of the Agreements would be unfair to employees covered by their terms. It is more than 14 years since the 2011 Agreement came into operation, and more than 10 years since the 2014 Agreement came into operation. Over this time, the legislative framework has altered to a significant degree. The Agreements have not kept pace with changes to the underlying General Retail Industry Award 2020 (the Award). It is unlikely that on their terms, the Agreements would pass the better off overall test against the Award if applied today. Although the legislative framework ensures that many of these changes extend to employees regardless of the terms of the Agreement, some of the changes are specific to the Award. It is appropriate in all the circumstances that the minimum safety net for employees be restored to at least the terms and conditions of the Award.

2. Views of persons covered: Both the SDA and The Reject Shop support termination of the Agreements. No employees have expressed any separate views in relation to the applications.

3. Effect on bargaining: On the information available, there has been no notification time, and there is no bargaining underway, in connection with an enterprise agreement to replace the Agreements. Many (but not all) of the employees covered by either the 2011 Agreement or the 2014 Agreement are now covered by a replacement enterprise agreement made in 2019 known as The Reject Shop Agreement 2018. Termination of the Agreement cannot adversely affect the bargaining position of employees who will be covered by a proposed enterprise agreement not yet in existence. The parties are free to bargain for a replacement agreement at any time.

4. Other relevant matters: This application was made more than two years ago. Following a stay of proceedings pending related applications in the Federal Court of Australia, the parties reached agreement on termination of the Agreements, including on a proposed termination date of 19 January 2026. This date is important for The Reject Shop to assist in establishing new payroll systems built specifically to accommodate employment under the Award. It is also a measure that is likely to promote compliance with the Award once it commences to apply in relation to affected employees.

[3] I am satisfied that termination of the Agreements is appropriate in all the circumstances. As a result, I must terminate the Agreements.

[4] The Reject Shop Agreement 2011 (AE888134) is terminated with effect from 19 January 2026.

[5] The Reject Shop Agreement 2014 (AE411976) is terminated with effect from 19 January 2026.

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