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Section : CASE STUDY - Employer initiated IFA
Domain : Human Resource Management
Classification : Not Identified
Context
This chunk is a case study illustrating the practical application of Individual Flexibility Arrangements (IFAs) in a small business setting, specifically how an employer, Jack, navigates the process of proposing an IFA to his employees covered by the Gardening and Landscaping Services Award. It highlights the steps he takes to ensure compliance with legal requirements and the better off overall test while aiming to simplify payroll through a flat hourly rate.
Text Content
Jack runs a small landscaping business. His 3 full-time employees are covered by the Gardening and Landscaping Services Award (Award) and work varying additional hours each week. These additional hours attract different overtime rates under the Award (150% of the ordinary rate for the first 2 hours of overtime and 200% after that). Jack would like to simplify his payroll by paying his employees a flat hourly rate of pay. He checks the individual flexibility arrangements clause in the award to find out how to initiate an IFA. He also confirms the Award doesn't have rules about annualised wage arrangements. Jack approaches each of the employees separately to discuss the proposed IFAs. He explains that they will still be paid for each hour worked, but all hours will be paid at the same flat hourly rate, which is higher than the ordinary rate, to compensate for the overtime rates which they would no longer receive. Jack gives each employee a written proposal and a copy of his calculations that show they won't be paid less under the proposed IFA. Jack asks the employees to consider the proposed IFA and the calculations he has given them and organises another meeting for the following week.
- What type of business does Jack run?
- How many full-time employees does Jack have?
- What is the overtime rate for the first two hours of overtime under the Award?
- What does Jack want to change about his payroll system?
- What does IFA stand for in the context of this text?
- How does Jack plan to compensate his employees for the loss of overtime pay?
- What steps does Jack take to discuss the proposed IFAs with his employees?
- What information does Jack provide to his employees regarding the proposed IFA?
- Why does Jack believe that the proposed IFA will not result in lower pay for his employees?
- What is the significance of the individual flexibility arrangements clause in the Award?