A win for Individual Flexibility Agreements

Fair Work Australia has handed down a decision which is a win for employers wanting to use Individual Flexility Agreements.(IFA)

This space has commented at length on these agreements previously, but in short they are agreements that can be made between employer and employee which seek to vary certain conditions including hours, overtime and penalty rates.

In an earlier decision FWA had said that where there is an enterprise agreement in place, employers could not enter IFAs.This was a great concern to many employers and employer groups.

AIG appealed the decision and the Government also intervened to seek to have the decision overturned.

The Full Bench of Fair Work Australia decided that the original decision was wrong and that IFAs could be made, even where there was an enterprise agreement.

Heather Ridout said afterwards

"The Full Bench has confirmed that the operation of a term of an enterprise agreement can be varied by an IFA so as to alter the legal rights of the employer and employee parties to the arrangement,"
"The decision importantly preserves the flexibility for employers and individual employees to reach agreement on arrangements which suit their needs."


Too true.Employers are rejoicing.Unions who will to control negotiations through enterprise agreement, not so much.