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By Virtual Human Resources
August 18, 2010
Individual Flexibility Agreements
The Fair Work Act 2009 , allows certain terms to be varied in order to meet the needs of individual employers and employees. This allows the company to increase it's flexibility in achieving it's goals as well as the specific needs of individual employees allowing them to achieve greater work life balance.
What are the employer's responsibility?
The employer is required to ensure that the employee covered by the individual Flexibility Agreement (IFA) is better off overall on the IFA than the award or enterprise agreement entered into.
It is the employer's responsibilty to ensure that an employee has genuinely agreed to the IFA.
IF the IFA is not made in accordance with the Fair Work Act the company may incur penalties of up to $6,600 for individuals or $3,300 for body corporate.
An employee can terminate an IFA if they believe that they are disadvantaged and can take action for compensation if that is the case.
What matters may be varied in the awards?
- Arrangements for when work is performed such as working hours
- Overtime rates
- Penalty rates
- Allowances
- Leave Loading
Employers need to have a process in place that allows for consultation regarding flexible work practices. Virtual HR can assist you by providing the necessary contracts (templates) which include the relevant flexibility terms, and ensures that you are compliant. We also provide the necessary appendages to accompany the contracts.