Under the Fair Work Act 2009 (FW Act) modern awards and enterprise agreements must include a flexibility term that allows an employee and employer to agree to an arrangement that varies the effect of some terms of an award or agreement.
If the award or enterprise agreement does not include a flexibility term, then a model term will be deemed to apply. Any agreed variation must leave the employee ‘better off overall’. Once made, these agreements are known as ‘individual flexibility arrangements’ or ‘IFAs’ and are an additional source of rights or entitlements for that individual.
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