What is a flexibility term?

26 December 2019 

A flexibility term allows an employee and their employer to vary the effect of an applicable award. 

Flexibility terms are covered in section 144 of the Fair Work Act 2009 (Cth).

Effect of individual flexibility arrangements

Once agreed, a flexibility arrangement is taken to be a term of the modern award.

Requirements for flexibility terms

The flexibility term must:

  • identify the terms in the award that may be varied; and
  • require that the employee and the employer genuinely agree to any individual flexibility arrangement; and
  • result in the employee being better off overall; and
  • outline how any flexibility arrangement may be terminated; and
  • be in writing and signed:
    • by the employee and the employer; and
    • if the employee is under 18 - by their parent or guardian; and
  • require the employer to give a copy of any individual flexibility arrangement to the employee; and 
  • the flexibility term must not require the term to be approved, or consented to, by another person (except for an employee under 18).

Do you have questions or comments about a flexibility term? Be sure to leave them below. 


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Vivian Michael
 

Vivian Michael is a lawyer and founder of Michael Law Group. Vivian's mission is to deliver the best quality business legal services to entrepreneurs launching an Australian business, wherever they are in the globe.

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