An individual flexibility agreement (IFA) is a legal document that allows an employer and employee to agree on modified work arrangements that may differ from the terms in an award or enterprise agreement. This agreement can be used to set up unique working hours, leave arrangements, and pay structures.
IFAs were introduced under the Fair Work Act 2009 and are designed to provide workplace flexibility for both parties while still complying with the National Employment Standards (NES). Under these standards, employees are entitled to a minimum set of conditions in areas such as leave, public holidays, notice of termination, and redundancy pay.
Furthermore, for an IFA to be valid, it must be in writing and signed by both the employer and the employee. There are also restrictions on what can be included in the IFA. For instance, it must not have detrimental effects on an employee’s NES entitlements and must be genuinely agreed to by both parties.
While IFAs can be an effective way to increase workforce flexibility, it is essential to make sure that they are fair and reasonable. Employers must ensure that employees receive sufficient compensation in exchange for any changes they make to the standard working arrangements.
In addition, before entering into an IFA, employees should seek legal advice to ensure that their rights are protected. This is especially important if they are unsure about the terms and conditions being proposed by their employer.
Overall, IFAs can be a useful tool for both employers and employees to negotiate unique and flexible working arrangements. However, it is crucial that these agreements comply with the National Employment Standards and are fair and reasonable for all parties involved. If you are considering an IFA, it is recommended that you seek professional advice to ensure that the agreement meets your needs and protects your rights.