We’ve had a number of aged care workers contact us to ask how an Individual Flexible Agreement (IFA) works. Here’s what you need to know to have a clear understanding of IFAs and how they can be used to customise your work conditions:
What is an Individual Flexible Agreement?
It is a tailored arrangement between you and your employer to adjust certain employment terms to fit your needs better.
IFAs can alter:
• Work hours – your start and finish times
• Overtime rates – how overtime is calculated or paid
• Penalty rates – rates for working unsociable hours
• Allowances – alterations to allowances for travel, meals, etc.
• Leave loading – adjustments to the additional pay you receive during leave periods
The agreement must ensure you are better off overall compared to the situation if the IFA were not in place. This means the benefits of the IFA should outweigh any potential drawbacks.
Both you and your employer must agree on the terms of the IFA, ensuring it meets both your needs and the company’s operational requirements.
What do you need to do if you think an IFA would benefit you?
1. Discuss your needs with your employer to explore potential adjustments
2. Negotiate with your employer to find a workable arrangement that suits both you and your employer
3. Once terms are agreed upon, they will be documented in a formal IFA
4. IFAs can be reviewed and adjusted as necessary to ensure they continue to meet your needs
Example scenario:
Your employer offers you extra hours beyond your contracted hours but only at a flat rate without additional compensation for overtime.
Impact: If your standard rate of pay includes overtime rates or penalties for extra hours worked, but the flat rate offered for these additional hours is less than what you would earn under your current rate, then you would not be better off overall. In this case, the IFA should ensure that the compensation for these extra hours (including any applicable overtime or penalty rates) exceeds or at least matches what you would earn without the IFA. Otherwise, the arrangement would not meet the better off overall test, and you would not benefit financially from accepting it.
Why consider an IFA?
• Adjust your work arrangements to fit personal commitments and preferences
• Improve work-life balance and job satisfaction
• Ensure that any changes to your pay or work conditions are fair and advantageous compared to your standard terms
Things to keep in mind:
• Make sure both you and your employer clearly understand and agree to the IFA terms
• The changes must be practical for both you and the company while meeting the better off overall test
• All agreed terms should be accurately documented to avoid misunderstandings
• An IFA can be cancelled by either party with 28 days’ notice
If you have any questions or would like to chat about your IFA options, reach out to HACSUassist on
1300 880 032 or email
[email protected] – we’re here to support you!