FIFO Work

What is FIFO work?

FIFO stands for ‘fly in, fly out’. This is a common work arrangement in Australia, especially in industries like mining, oil and gas, construction, and energy.

Instead of relocating permanently, FIFO workers fly to the job site—often in remote or regional locations—and stay there for the duration of their shift rotation. This could be two weeks on and one week off, or eight days on and six days off, depending on the company and site.

The employer typically covers the cost of flights to and from the worksite and organizes transport from the airport to the camp or site. FIFO workers usually stay in dedicated accommodation camps near the worksite. These camps are often equipped with essentials like private or shared rooms, catering services, laundry and cleaning services, and recreation facilities like gyms, TV rooms, or sports courts.

FIFO work can offer high pay and job security, but it also comes with challenges, including long hours, isolation, and time away from family. It’s a lifestyle choice that suits some more than others.

Industries where FIFO work is prevalent in Australia

FIFO work is a common employment arrangement in industries that operate in remote or regional areas where it’s not practical for workers to live permanently. These sectors include:

The mining industry

The mining sector is the largest user of FIFO arrangements, particularly in Western Australia and Queensland. Approximately 50% of mining operations in Western Australia and 40% of the Bowen Basin workforce in Queensland rely on FIFO workers.

The oil and gas industry

FIFO arrangements are widely used for offshore oil rigs and remote processing plants. Around 5% of the FIFO workforce operates in this sector. Workers include engineers, technicians, and operators required for exploration and production activities.

The construction industry

Large-scale infrastructure projects like dams, highways, railways, and renewable energy installations often employ FIFO workers due to their remote locations. This sector includes specialized roles like electricians, boilermakers, and civil engineers.

The energy sector

Renewable energy projects, including wind farms and solar plants in remote areas, increasingly use FIFO arrangements to attract skilled workers for construction and maintenance.

FIFO work schedules and rosters

FIFO work schedules are designed around rosters that split time between working on-site (‘on’ time) and time off at home (‘off’ time). These schedules vary depending on the company, site location, and role, but they aim to balance operational needs with adequate rest for workers.

Typical FIFO rosters

FIFO rosters are usually structured to maximize productivity during the ‘on’ period while providing a substantial break during the ‘off’ period. Common FIFO work schedules typically look like this:

• 14/7: Two weeks on and one week off.
• 8/6: Eight days on and six days off.
• 21/7: Three weeks on and one week off.
• 14/14: Two weeks on and two weeks off (also known as an even-time roster).
• 28/7: Four weeks on and one week off (more common in international FIFO roles or offshore sites).

Example: 14/7 FIFO schedule

Let’s take the 14/7 schedule as an example—the worker flies to the site and works 12-hour shifts every day for 14 consecutive days. These shifts may be day shifts, night shifts, or a rotation of both.

They then fly home and have a full week off to rest, spend time with family, and recharge before returning to the site. This structure offers extended time off between work periods but requires sustained focus and physical effort during the on-site stretch.

Why is FIFO used?

Organizations use FIFO work arrangements for several strategic and practical reasons, especially in industries operating in remote areas. Here’s why FIFO is commonly used:

• Access to skilled labor: Companies can recruit skilled workers from across the country, not just from nearby towns or cities.
• Remote locations: Many job sites are in isolated areas with limited or no local population or housing infrastructure.
• Cost-effective for short-term projects: Eliminates the need to build permanent housing or relocate entire teams for temporary or seasonal work.
• Operational flexibility: Companies can adjust workforce numbers quickly based on project needs and timelines.
• Avoids relocation costs: Workers can remain based in their home cities, reducing the need for costly relocations or incentives.
• Worker preferences: Some employees prefer FIFO because they can earn a strong income while living in a preferred location during their time off.
• Minimized local impact: Reduces the strain on small or regional communities that may not be able to support a sudden influx of permanent residents.

The advantages and disadvantages of FIFO

FIFO challenges for employees

FIFO work offers great earning potential and career opportunities, but it also comes with a unique set of challenges for employees:

• Being away for long periods can lead to feelings of loneliness, missing important events, and relationship strain.
• Remote environments and long shifts can contribute to fatigue, stress, anxiety, and even depression if not well-managed.
• Long hours, harsh weather, and physically demanding tasks can take a toll on the body over time.
• Despite being in camp with others, the rostered lifestyle can lead to a lack of meaningful social connection.
• Night shifts or alternating rosters can interfere with natural sleep cycles, impacting overall health and alertness.
• Transitioning from site life back to home life can be challenging, especially when trying to reconnect with family routines.

How HR can support FIFO workers

Given the unique demands of FIFO roles, HR plays a key role in supporting employee wellbeing, both on-site and during off-periods.

• Mental health programs and EAP access: Offer confidential counseling services, mental health awareness campaigns, and peer support programs on site and off site.
• Wellness initiatives: Promote physical health through access to gyms, fitness programs, healthy meals, and sleep education.
• Flexible roster options: Where possible, provide input into rosters or explore shorter swings to help balance work and personal time.
• Family support resources: Support partners and families with information, check-ins, and resources to help them manage the FIFO lifestyle.
• Regular check-ins: Encourage line managers and HR to have routine conversations with workers to pick up early signs of stress or dissatisfaction.
• Positive camp culture: Create an inclusive, respectful environment with opportunities for social activities and team building to reduce isolation.

Regulations and considerations for FIFO work in Australia

Taxation issues

• Fringe benefits tax (FBT): Employers may face FBT liabilities for covering FIFO workers’ travel expenses. Recent court decisions, such as Bechtel Australia Pty Ltd v Commissioner of Taxation, clarified that home-to-work travel costs are considered private expenses, making them subject to FBT if paid by employers.
• Zone tax offset: FIFO workers who spend over 183 days in remote areas can claim the zone tax offset, compensating for high living costs and isolation. However, recent changes propose limiting this offset to permanent residents of remote areas, potentially impacting many FIFO workers.

Workplace health and safety

• Mental health: Employers must comply with codes of practice to ensure mentally healthy workplaces for FIFO workers. This includes promoting health and wellbeing under the Work Health and Safety Act 2020 and related regulations.
• General safety obligations: Under model work health and safety laws, employers are required to maintain a safe work environment, monitor worker health, and minimize risks.

Employment rights

• Fair work protections: FIFO workers classified as employees are entitled to minimum entitlements under the Fair Work Act 2009, including wages, leave provisions, and protections against unfair dismissal. Contractors engaged in FIFO work have fewer statutory protections.
• Employment contracts: Workers should ensure their contracts clearly define their employment status (employee vs. contractor) to secure applicable benefits.

Regional community impact

• Economic considerations: FIFO arrangements reduce the need for permanent residency in regional areas, affecting local economies and infrastructure development. Governments have been urged to review funding allocations for communities affected by FIFO practices.
• Corporate responsibility: Resource companies using FIFO practices are encouraged to support local communities through partnerships and investments in infrastructure.