In the final of this 3 part series, we discuss whether IFAs or enterprise agreements are the better option for your organisation.
Modern awards are created as minimum standards for the relevant industry or position, and may not be ideal for all businesses or employees. We regularly encounter employers who do not strictly comply with the terms of an award. Even in situations where the employer’s terms are better than those under an award, a failure to comply may result in a prosecution and a hefty penalty.
Employers can register an enterprise agreement or enter into individual flexibility agreements (IFAs) with their employees—which must include the Better-Off-Overall Test, or BOOT—to avoid the strict application of a relevant award. But which agreement is better for your organisation?
To help you decide, here is a summary of the main conditions for each option:
Individual Flexibility Agreements
So which agreement is better for you?
Before implementing an enterprise agreement or an IFA, it is important to consider what you are trying to achieve. Regardless of which agreement you choose, you should ensure the agreement is drafted correctly and the proper process is followed for its implementation.