Individual flexibility arrangement

Individual flexibility arrangement

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Introductory note

This precedent is an individual flexibility arrangement (also known as an individual flexibility agreement). It may be used to alter certain provisions of an award or enterprise agreement in relation to an individual employee. An employee and employer can enter into an individual flexibility agreement (IFA) which varies the terms and conditions of an award or enterprise agreement in order to meet the genuine needs of the employee and employer.

Precedent overview

The Fair Work Act 2009 (Cth) (FW Act) requires all modern awards and enterprise agreements must contain a flexibility term that provides for individual flexibility arrangements. This precedent must be completed in accordance with the requirements of the FW Act (for an IFA made under a modern award see section 144, of under an enterprise agreement, see sections 202 and 203) and the flexibility term in the relevant industrial instrument. Where the employee is under 18, the IFA must also be signed by the employee’s parent or guardian.

The IFA will be subject to the usual “better off overall” test.

This precedent has been updated. Previous versions of this were authored by Brooke Pendlebury, Principal, Pendlebury Workplace Law. This precedent is prepared with the assistance of Specialist Editor Justine Turnbull, Partner, Seyfarth Shaw Australia.