Recently, the Fair Work Commission has released its report into the extent to
which individual flexibility arrangements (IFAs, or ‘iffas’ to those in the
know) have been agreed to. Essentially, the answer is not much: FWA’s survey
results indicate that less than 10 per cent of employees and employers in 2012
have used IFAs since their inception, although the exact proportions are hard
to determine because of some confusion amongst respondents about what
constitutes an IFA. The low usage of IFAs had already been indicated in the report for the Fair Work Act
Review.
So why aren’t IFAs more widely used? Several reasons were
suggested in submissions to the FW Act Review; the Fair Work Commission report
puts some numbers on how common these reasons are, at least for employers.
According to the survey, the main reason is that employers haven’t found a need
to use them; with over 50 per cent of employers surveyed who had not made an
IFA saying it was because there was no identifiable need for IFAs. Another
third said it was because employees had not requested IFAs. Then there’s
another 15 per cent that said they use unwritten or verbal agreements with
staff to vary conditions of employment, while about the same percentage said
they use individual agreements (e.g. common law contracts) instead.
Arguably then, one might say that, for the most part, IFAs
aren’t widely used because employers and employees often don’t have a need to
make a flexible arrangement that meets a specific individual’s needs, or if
they do, they sometimes either just use some informal way of doing it or they
use individual contracts. Whether that changes going forward (assuming IFAs
continue to exist) will be seen when the Fair Work Commission reports again in
three years time.