A flexibility clause must meet a number of requirements, including: Bonus rights relating to any of these five bonus issues may be changed by agreement between an employer and an individual employee, provided that the employee as a whole is „better off“ under the IFA. However, a clause which does not provide for a change in the effect of any of the clauses of the agreement cannot be a flexibility clause. Some farmers find the terms of the 2020 Pastoral Award inflexible and do not take into account peak or unusual hours associated with farm work. Wouldn`t it be great if you could just pay a lump sum for all the hours worked? Individual Flexibility Arrangement (IFA) Model – Human. If an employee or employer violates a provision of an IFA, they violate any provision of the agreement – so that the IFA can be applied as a clause of the operating agreement.  Julia has a school-aged child who must be picked up from school at 15:00.m every day. As a result, Julia asks if she can vary her working hours as part of the prize in an IFA so that this is possible. If the company agreement does not include a concept of flexibility or a concept that does not meet all the requirements, the model concept of flexibility set out in the Fair Work Regulations is considered a clause of the agreement.  It is possible.
The 2020 Pastoral Award includes a flexibility concept that allows employers and employees to agree to vary the impact of certain award conditions and create working conditions tailored to the needs of your company and employees. This is called the Individual Flexibility Agreement (IFA). If the Fair Work Committee approves a company agreement and the standard flexibility clause is considered a clause of the agreement, this should be noted in the decision approving the agreement.  A company agreement must contain a clause allowing an employee and his or her employer to enter into an individual flexibility agreement (IFA) that modifies the effect of the terms of the agreement to meet the actual needs of the employer and the individual employee.  This is called the concept of flexibility. This was a request by the Minister to review an aspect of a decision approving a company agreement. At first instance, the Commission considered that the flexibility clause of the company agreement did not meet the requirements of a flexibility clause, as it varied the terms of the commitment agreement rather than the effects of the terms of the company agreement. Accordingly, the Commission decided that the model flexibility clause would be part of the agreement. Flexible arrangements that take into account employees` personal needs and priorities can provide employees with greater value at work and greater job satisfaction. This, in turn, helps employers retain their employees and reduce staff turnover. With the flat rate calculator, it is relatively easy to set a lump sum for full-time employees that takes into account overtime and penalty interest. Employers and employees must agree on the rate of pay under the Individual Flexibility Agreement (IFA), and the agreed rate must pass the Better Off Overall Test (BOOT) to ensure that the employee is overall better off than the compensation.
The Minister argued that the Commission`s distinction between changing a term and changing the effect of a term was not a valid distinction. The practical effect of an individual flexibility agreement concluded as part of a flexibility concept was to change the terms of a company agreement in relation to the employer and the individual employee. The Fair Work Act allows for changes to certain conditions of modern prices. In this way, working conditions can be adapted to the individual needs of employees (or employers), provided that the employee as a whole is „better off“. The plenary noted that an individual flexibility agreement concluded under a flexibility clause in a company agreement does not change the terms of the agreement, but that the agreement modifies the legal rights of the parties in the relevant aspects. That is, an individual flexibility agreement modifies the effect of a clause in the company agreement and not the clause itself. The Better Off Overall Test (BOOT) compares the IFA to the Pastoral Award 2020. The agreement will start if the bottom line is that the employee is better off than he would have been if no agreement had been reached and he had been paid in accordance with the award. This includes a comparison of the financial reward the employee receives before and after the agreement is concluded.
Once you`ve determined the relevant minimum wage amounts required by law and any other benefits you may be able to provide, you can start developing a package. Failure to use the exact wording of the Fair Work Act does not mean that a concept of flexibility is not a concept of flexibility within the meaning of the Fair Work Act, as it is not appropriate to apply such high standards in the interpretation of company agreements. An approach that takes into account the purpose of the provision is preferable, and a liberal approach to the interpretation of the concept of flexibility was appropriate given the language of the concept of flexibility in the model […].