Enterprise Agreements and IFAs

ENTERPRISE AGREEMENTS

An Enterprise Agreement is a legally binding agreement that is negotiated between an employer and its employees. An Enterprise Agreement can replace an award or awards entirely thereby representing an agreement that has been made to suit a particular enterprise and the unique characteristics of that enterprise.

For example, the modern Hospitality Industry (General) Award 2010 does not allow for the cashing out of annual leave, mixed functions (multiple hire arrangements), nor does it allow for Time Off In Lieu instead of making overtime payments. An Enterprise Agreement can create flexibilities that awards do not allow.

The following types of Enterprise Agreements can be made:

• Single-enterprise Agreements (one employer or several single-interest employers)
• Multi-enterprise Agreements (multiple employers who are not single-interest employers)
• Greenfields Agreements (Agreement made prior to business commencing)

QHA’s Employment Relations Department can assist with all your agreement making needs including the initial drafting and lodgment of Enterprise Agreements, through to the variation or termination of an existing Agreement.

Members seeking an Enterprise Agreement should talk to QHA’s Employment Relations Department.  For the very competitive consultancy rate of $195.00 (plus GST) per hour we can create a unique Enterprise Agreement for your workplace!

The flexibilities* an Enterprise Agreement may achieve include:

• Flexible part time provisions (not allowed under the award)
• Time off in Lieu of Overtime payments (not allowed under the award)
• Allowing juniors to be paid junior rates when serving alcohol (must be paid adult rates under the Award) 
• Cashing out arrangements for annual leave (not allowed under the award)
• Flexible breaks options (currently 30 minutes after 5 hours of work)
• The introduction of mixed functions (not allowed under the award)
• Clarification of the wages schedule - useful when more than one modern award appplies
• Allowing payment in lieu of notice instead of the employee working the notice period(not allowed under the award)

* please note that the above outcomes are subject to the satisfaction of the BOOT (better off overall test), therefore, all employee covered by the Agreement must be better off than if employed in accordance with the award only.

Following an initial consultation to ascertain the flexibilities you are seeking, and the amount of work required, you will be provided with a quote which will include an estimate of our professional fees.

INDIVIDUAL FLEXIBILITY AGREEMENTS (IFAS)

The Hospitality Industry (General) Award 2010 (the ‘HIGA’) allows for employers and individual employees to enter into an individual flexibility arrangement (‘IFA’) under Clause 7 - Award Flexibility - of the HIGA.  As part of the Award Modernisation process, this clause has been incorporated into the HIGA so that an employer and an individual employee can vary the operation of particular terms of the HIGA to be more flexible and practical in relation to the genuine needs of the employer and the employee.

An IFA is designed to be used when an employer and an employee mutually agree to vary
certain terms of a modern award that applies to the employee – in line with the variations
allowable under the relevant modern award.

 

Therefore, an IFA is not an employment contract, rather, it is an agreement that is reached
once employment has commenced. Employment cannot be offered conditional upon a
prospective employee entering into an IFA.

 

The terms of the HIGA that an employer and an individual employee may agree to vary are:

 

·         Arrangements for when work is performed; and/or

·         Overtime rates; and/or

·         Penalty rates; and/or

·         Allowances; and/or

·         (Annual) Leave loading.

 

However, in varying the above terms, an IFA must result in the individual employee being
Better Off Overall in relation to their overall terms and conditions of employment when compared
to the HIGA.

 

To discuss how an IFA can work in your workplace, please direct queries about your
individual situation to the Employment Relations Department on 07 3221 6999 or Contact Us.