5 things an award flexibility agreement must include

By Charles Power on October 19th, 2011
  1. Industrial Instruments
  2. Modern Awards

Dear Reader,

Many of you no doubt have employees that are employed under a modern award.

And if so, I’m sure you’ve probably come across terms in the award that you would like to change.

Well, an award flexibility agreement (or individual flexibility agreement) can allow you to do this.

It’s an agreement that allows individual employees covered by a modern award to agree on variations to the terms of the award with their employer. For example, you and your employees may agree on different working hours or pay rates than those already set out in the modern award.

Remember though, the variations set out in an award flexibility agreement cannot disadvantage the employee.

You must ensure before you make an award flexibility agreement that your employees will be better off overall under the changes you propose…

Because if they’re not, the agreement won’t be valid in the eyes of Fair Work Australia.

Check out Charles’ article below to find out 5 things an award flexibility agreement must include to be considered legal.

Until next time…

Claire Berry

Claire Berry
Editor
Workplace Bulletin

And now over to our editor-in-chief Charles Power…

Continues below…

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5 things an award flexibility agreement must include
By Charles Power
Editor-in-Chief, Employment Law Practical Handbook

If your employees are covered by a modern award, you are able to make an agreement with one or more of these employees to vary the application of modern award terms dealing with:

  • working hours and days;
  • overtime rates;
  • penalty rates; and
  • allowances and leave loading.

Here are 5 things your award flexibility agreement must include to be considered legal:

  1. It must outline exactly what has been agreed to, and how the terms of employment have been varied.
  2. It must demonstrate how the agreement does not disadvantage the employee in their terms and conditions of employment.
  3. It must state the date that the agreement will commence.
  4. It must state that the agreement can be terminated by either party by giving 4 weeks written notice of termination.
  5. It must be signed and dated by both you and the employee.

After you have made an award flexibility agreement with an employee, you must keep a copy of it on file and also give a copy to the employee.

Remember, you cannot make the signing of an award flexibility agreement a condition of employment and you can only make an award flexibility agreement with an employee covered by a modern award. However you can’t make an award flexibility agreement with an employee who is covered by an enterprise agreement.

Regards,

Charles Power

Charles Power
Editor-in-Chief
Employment Law Practical Handbook





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