In awards, an individual flexibility arrangement (IFA) can be used to vary clauses which deal with:

• arrangements for when work is performed
• overtime rates
• penalty rates
• allowances
• leave loading.

An IFA can only be made after the employee has started employment. There has to be genuine agreement between the employer and employee.

What are 'arrangements for when work is performed'?

Arrangements for when work is performed include:

• hours of work
• rostering
• notice periods
• meal and rest breaks
• variations to working hours.

Can an IFA reduce minimum shift lengths?

No.

Can an IFA include a 'preferred hours' arrangement?

A 'preferred hours' arrangement is one where an employee chooses to work hours that would normally get paid at penalty or overtime rates. The employee then gets paid lower pay rates because they prefer to work those hours.

An IFA can include this kind of arrangement. However, the employee would still need to be better off overall under the IFA.

Can an IFA trade off conditions for higher wages?

Yes, as long as the condition is one that can be covered by an IFA, and the employee is better off overall.

Can an IFA trade off lower wages for conditions?

No. Base pay rates can't be reduced by an IFA.

Can an IFA provide a benefit outside the terms of the award?

Yes.

Example

Jolene is employed under the Banking, Finance and Insurance Award. As part of her job she travels to clients' homes to give them advice. She gets a company car to do this.

Jolene is required to be on stand-by two nights a week. She gets an allowance for being on stand-by.

Jolene and her employer make an IFA which gives her unlimited personal use of her work car on weekends. In return, Jolene won't get paid the stand-by allowance.