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Individual flexibility agreements

Last updated March 2024

This chapter explains what individual flexibility agreements (IFAs) are for employees under modern awards or enterprise agreements, and the requirements for an IFA to be lawful.

What is an individual flexibility agreement?

Definition: Individual Flexibility Agreement (IFA)

An IFA is an agreement that allows individual employees covered by a modern award or enterprise agreement to agree to variations to the terms of that award or agreement.

There are two main types of IFA:

  • award-based IFAs; and
  • agreement-based IFAs.

Every modern award and enterprise agreement made under the Fair Work Act 2009 (Cth) (FW Act) contains a flexibility term allowing employers covered by a modern award or enterprise agreement to enter into an IFA with employees covered by the same award or agreement.

Definition: Flexibility Term

A flexibility term permits you and your employees to vary the effect of the enterprise agreement to meet both of your needs through an IFA.