Procedure for Individual Flexibility Arrangements

Procedure for Individual Flexibility Arrangements

An IFA clause is a compulsory inclusion in awards and enterprise agreements.

IFAs are used to make alternative arrangements that suit the needs of the employer and the employee but can’t reduce or remove employee entitlements. Employees must be better off overall under the IFA, and this can include financial and non-financial benefits.

Regardless of whether you wish to make an IFA for the Worker Retention Payment Grant or for an employee needing flexibility for other reasons, it’s useful to know the general procedure.

Where are the details?

Fair Work Ombudsman: provides an overview of IFAs.

Children’s Services Award 2010: Clause 7 covers what can be varied, provides the procedure and how to write document.

What can be varied?

There are limits to the terms of the award that can be varied:

• arrangements for when work is performed, such as working hours

• overtime rates

• penalty rates

• allowances

• annual leave loading

Who can ask to make an IFA?

Either the employer or the employee can instigate discussions about making an IFA.

IFAs can be made any time after an employee has started working for the employer.

Both parties must genuinely agree.

No-one can be forced to sign an agreement.

What steps should be taken to implement an IFA in your workplace?

Below gives an broad overview of the steps necessary to create an IFA. The complexity of the process can vary. In some instances it may be relatively straightforward, while in others, it could require additional time to ensure all details are accurately addressed.

• Meet with the employee/s affected by or seeking the variation. This can be individually or in a group initially.

• Discuss the variation request, including as much information as possible to ensure all parties fully understand how the variation affects them.

• Check the variation is permitted under the Award.

• Check that the variation leaves the employee/s better off overall, compared to if there were no variation in place.

• Prepare a clear written proposal, taking reasonable steps to provide assistance to employees to understand the content where needed.

• Explain the proposal including termination terms.

• Allow time for due consideration and answer questions.

• Meet with each individual affected by the variation.

• Come to a genuine and mutual agreement on the arrangement.

• Sign the agreement. The employer and employee (or parent/guardian of employees under 18 years of age) must both sign and date the agreement.

• Provide a copy to the employee.

• A copy is kept on file by the employer as a time and wages record.