Landmark Ruling Allows an Employer to Move Workers Between Businesses Without the Negative Consequence of Industrial Agreements Following Them

Crown Resorts Limited (Crown) is Australia’s largest gaming and entertainment group and owns and operates two of Australia's leading casinos, Crown Melbourne and Crown Perth. Michael Tamvakologos leads the team that has represented Crown since 2019.

In December 2020, Crown opened its new Sydney casino. Initially, Crown sought to staff the new Sydney casino with workers already employed at its Melbourne and Perth casinos. With these workers currently covered by one of three agreements, Crown sought a declaration from the Federal Court of Australia that the agreements under which the workers were employed would not continue to apply once they started their new jobs.

In February, a novel transfer of business case decided by the Federal Court of Australia paved the way for national employers to move staff between businesses and Group companies without the negative consequence of industrial instruments transferring across with staff. Our client, Crown Sydney, succeeded in obtaining a Federal Court declaration that experienced gaming staff—including managers—moving from Crown Resorts’ Melbourne and Perth casinos to perform similar roles at Crown Sydney are not doing the same or substantially the same “work” that would trigger a transfer of instruments. The staff can be employed under a Sydney enterprise agreement and do not carry their Melbourne or Perth enterprise agreements with them.

The Sydney employment agreement was favorable to Crown and will provide significant long-term operational savings.