Used by an employer and an individual employee to agree on an arrangement and vary the effect of a modern award or enterprise agreement to meet the genuine needs of the employer and the individual employee.

The arrangement, known as an individual flexibility arrangement (IFA), must not undermine the employee’s minimum entitlements under the award or agreement. The parties must ensure that the IFA satisfies the better off overall test when compared to the award or agreement the IFA varies.

A flexibility term must be included in every enterprise agreement. If it is not included, it will be taken to include the model flexibility term set out in Schedule 2.2 of the Fair Work Regulations 2009 (Cth).