I have acted for several businesses that have had claims made
against them from an employee for under payment including
penalties, overtime and leave loading. In each of these matters,
the businesses were paying the employee above the award rate and in
some cases were also paying the employee a "bonus".
However, as our clients did not have Individual Flexibility
Agreements ("IFA") in place to vary the requirements
under the award to make a "loaded" single rate to their
employees which rolled in overtime rates, penalty rates,
allowances, leave loading and/or hours, the businesses were subject
to claims from their former employees for under payment.
While the businesses thought the employees were being
"opportunistic" they were legally entitled to make the
claims. Without implementing properly drafted IFAs these businesses
have been put in a position where they have had to either defend a
claim made against them for under payment of entitlements or
negotiate a
