An individual flexibility agreement (IFA) is a legally-binding agreement between an employer and an employee that allows for flexibility in work arrangements. These agreements are commonly used in Australia under the Fair Work Act 2009.
An IFA allows an employer and employee to come to an agreement on certain working conditions that may differ from what is specified in an award or enterprise agreement. This can include changes to hours of work, overtime rates, and working from home arrangements, among others.
IFAs can be beneficial for both employers and employees. For employers, they can help to increase productivity and flexibility in the workplace, while providing employees with greater control over their work schedules and conditions. For employees, IFAs can offer increased job satisfaction, work-life balance, and the ability to meet personal commitments.
An IFA must be initiated by the employer, but both parties must agree to the terms of the agreement. The agreement must be in writing and must clearly outline the terms of the arrangement, including any changes to working conditions or entitlements.
Importantly, an IFA must not disadvantage an employee in any way. The terms of the agreement must provide an overall benefit to the employee, which can include increased pay rates or the ability to work from home.
It is important to note that an IFA cannot be used to avoid minimum wage or other employment standards. All employment laws and regulations must still be adhered to, and IFAs must be approved by the Fair Work Commission to ensure that they are fair and reasonable.
If you are considering an IFA, it is important to seek legal advice and ensure that the terms of the agreement are mutually beneficial to both parties. With the right conditions in place, an IFA can provide a flexible and effective solution for both employers and employees.