An IFA appears to be a clause in a modern arbitration award or enterprise agreement and can be applied as such. Employers who believe that premium requirements can be avoided by implementing an Individual Flexibility Agreement (IFA) may be disappointed. Unlike the old Australian Labour Agreements (AWAs), IFAs are less secure and narrower in their application. An IFA may vary certain awarding conditions to “meet the actual individual needs of the employer and the individual worker,” but only as long as the employee is “overall better off” relative to his or her premium terms. An IFA:. An IFA concluded under a modern price or enterprise agreement ends with the creation of a new enterprise agreement. A flexibility clause allows an employer and an individual worker to agree on an agreement that varies the effect of the awarding or modern enterprise agreement, in order to meet the real needs of the employer and the individual worker. The FW Act ensures that these provisions do not infringe on the minimum rights of workers by requiring the employer to ensure that, on the whole, the worker covered by the IFA is better off than the modern attribution or enterprise agreement, which varies between the IFA. The flexibility clause used in a registered agreement will indicate which clauses can be changed. A flexibility clause must meet a number of requirements, including those to be met: Full Bench found that an individual flexibility agreement concluded pursuant to a flexibility clause in an enterprise agreement does not alter the terms of the agreement, but that the agreement alters the legal rights of the parties to it on the relevant points.

In other words, an individual flexibility regime changes the effect of a duration of the enterprise agreement and not the term itself. It is the employer`s responsibility to ensure that, overall, the worker is better than if there were no ARIs. The employer`s “best overall assessment” generally involves comparing the worker`s financial benefits under the AFI with the financial benefits under the current arbitration or enterprise agreement. The employee`s personal circumstances and any non-financial benefits that are important to the employee may also be considered. If a worker or employer violates an IFA term, it violates the duration of the contract – the IFA can be imposed as the duration of the enterprise contract. [3] The ATO must ensure that the provisions of the individual flexibility regime apply: the non-application of the exact language 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 these high standards to the interpretation of enterprise agreements.