IFA for existing employees

[tubefeed]

I am currently writing letters to all employees to clarify which award they are now under and what their new terms of employment are according to this award and the NES.

We have been advised to set up an IFa (Individual Flexibilty Agreement) with each employee so that we can do away with leave loading and overtime (for Sat mornings).

All of our emps are being paid well over and above the award, so they are more than well enough renumerated without these extras.

However, there is a line in the standard IFA that we are using that says if they do not sign it they will revert to the lower rate of pay that applied via the award. I don't think that we can legally say this if they are already receiving an above award rate. This would be more or less forcing them to sign the IFA. That said, why on earth would an existing emp sign an IFA then if you cannot do this? I am quite confused!!!!

Any thoughts?

[FWI]

Firstly - IFA's can only be offered if a modern award applies.

Secondly - Please read section 144 to 145 of the Fair Work Act.

Thirdly - and IFA requires the EMPLOYER to ENSURE the arrangement results in the employee being better off overall had the employee not entered the agreement in the first place (s.144(4)(c).

Fourthly-the agreement can be terminated by either party and

Finally - An employee does NOT have to enter into an IFA, its voluntary and of major concern is the employee has a workplace right (s 344) and an employer MUST NOT exert undue pressure or influence to agree to or terminate an IFA.

If your employer makes a reduction in pay or other entitlement as a result of not making an IFA then the company is injuring the employee by entering into an 'Adverse Action' and good bye HR career if you are found guilty of such action and contravention. Be aware that not only can a director be personally liable for an action, a HR manager or alike can equally be personally liable for making or causing an adverse action or workplace right.

Basically, the parth you are about to travel is a dangerous one. and i dont see the IFA being better off overall should the employer remain as is, as the wages and terms paid, al beit above award, are a customary practice (Custom and Practice) and there would be other industrial action or court action that can be taken against the company.

Over to you

[Tianna]

I agree with the above comment however I don't think a IFA is something to fear by any means. This is something that has always happened anyway now it is just more formal.

Your right in saying you cannot decrease their pay if they don't sign. Once that wage rate has been set it is near impossible to decrease, an individual could claim Unfair Dismissal on this notion (even if they are still employed with you)

I have a template if you wish to have a look, just provide an email address for me to send it.