The flexibility clause used in a registered agreement will indicate which clauses can be changed. 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. An IFA must ensure that the employee retains the minimum rights in the agreement. Like the enterprise agreement, it is about ensuring that an employee “is better overall.” To determine whether an employee is doing better overall, it is advantageous to speak to an employment law specialist who can give his or her opinion on whether your agreement would pass the test. The power to make an IFA derives from the flexibility clause in the modern price. The Fair Work Act provides that each modern price and enterprise agreement includes a “test flexibility” clause. In theory, this clause allows an employer and an employee to agree on an IFA that varies the impact of the Modern Prize or the Enterprise Agreement, so that it can meet “the real needs of the employer and the individual worker” in an individual context. An IFA concluded under an enterprise agreement can only change the terms of the enterprise agreement defined in the flexibility clause in the enterprise agreement.
The issues contained in the flexibility period must be decided by the parties at the conclusion of the enterprise agreement. For example, the flexibility clause in an enterprise agreement could stipulate that all the terms of the agreement can be changed or it could say that only certain terms of the agreement can be amended by an IFA. An Individual Flexibility Agreement (IFA) is part of the Fair Work Act. In practical terms, it is an agreement between an employer and a single employee. This agreement amends some of the terms of a bonus or agreement and must leave the individual employee “Better Off Overall” when it is signed. An IFA may be interrupted at any time by a written agreement between the employer and the employee. Otherwise, the IFA may be terminated by an appropriate notification to the other party. An IFA made as part of a distinction can be closed with a 13-week delay.
A registered agreement will say how much notification is required, but it may not be more than 28 days. The flexibility clause generally provides for the conditions of award or contract that can be changed by mutual agreement (by individual flexibility agreement) between the employer and the worker.