What is an individual flexibility arrangement?
An IFA is a written agreement between an employer and individual employee that varies certain terms of an award or enterprise agreement to suit both parties.
An individual flexibility arrangement (IFA) is a written agreement between an employer and a single employee that changes the effect of certain terms of a Modern Award or enterprise agreement. Every award and EA must contain a flexibility term that specifies which conditions can be varied — commonly overtime rates, penalty rates, allowances, and leave loading.
An IFA must leave the employee better off overall compared to the award or EA without the arrangement. It must be genuinely agreed to (no coercion), in writing, signed by both parties, and able to be terminated by either party with 28 days' written notice. An IFA cannot undermine the NES or the BOOT.
Key facts
- •Must be in writing, signed by both parties, and state the terms being varied
- •Employee must be better off overall compared to the award or EA without the IFA
- •Cannot be a condition of employment — must be genuinely agreed to
- •Either party can terminate an IFA with 28 days' written notice
- •Cannot reduce NES entitlements — only certain award/EA terms can be varied
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Employment CheckFrequently asked questions
Can my employer force me to sign an IFA?
No. An IFA must be genuinely agreed to by both parties. An employer cannot make signing an IFA a condition of employment, and the employee must not be coerced or pressured.
Can I cancel an IFA?
Yes. Either party can terminate an IFA by giving 28 days' written notice. The employee then reverts to the standard award or EA terms.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.