The Fair Work Ombudsman has issued a clarification of the use of individual flexibility arrangements (IFA) and issues that the Fair Work Ombudsman can investigate.

 

IFAs can be negotiated by employers and employees to vary some terms in a modern award or enterprise agreement to meet the needs of both parties. It is the employer’s responsibility to ensure that the employee is better off overall than if there was no IFA.

 

Things the Fair Work Ombudsman can investigate include:

  • claims that an IFA is not genuinely agreed to.  The FWO can also investigate allegations that an employer applied undue influence or pressure to an employee to make or terminate an IFA
  • A prospective employer cannot make an offer of employment conditional on the prospective employee entering an IFA. The FWO can investigate cases where it appears that this has occurred
  • Where an IFA is in place, the FWO can investigate whether an employer has complied with the terms of the IFA
  • An employer’s failure to ensure that an  IFA meets the requirements in the Fair Work Act is a contravention of the flexibility term of the award or agreement.  This includes the requirement for the employer to ensure that the employee is better off overall. The FWO can investigate any alleged contravention of a flexibility term.


More information is at www.fairwork.gov.au.