All agreements must include:
Defect or issue | Requirement |
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The agreement does not include a dispute settlement term that meets the requirements in the Fair Work Act 2009 and Fair Work Regulations. For example: it does not expressly:
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The dispute settlement term in an agreement must:
The model term in Schedule 6.1 of the Fair Work Regulations may be used. If a term is not included or does not meet the Fair Work Act's requirements, the Commission must reject the agreement or require an undertaking.[1] |
Defect or issue | Requirement |
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The agreement does not include a flexibility term or a consultation term that meets the requirements in the Fair Work Act and Fair Work Regulations. A flexibility term allows an employer and employee to make an individual flexibility arrangement (IFA) which varies the effect of terms of the agreement, in order to meet their genuine needs. A consultation term requires the employer to consult with employees about: a major workplace change that is likely to have a significant effect on the employees; or a change to their regular roster or ordinary hours of work. For example; an agreement may contain a flexibility term that does not provide for the employer or employee to terminate an IFA by giving not more than 28 days' notice. |
An agreement must contain a flexibility term that complies with the requirements in ss.202 and 203 of the Fair Work Act, and a consultation term that complies with s.205 of the Fair Work Act.[2] Agreements may use the model terms in Schedules 2.2 and 2.3 of the Fair Work Regulations. Where an agreement does not include a flexibility or consultation term or includes a non-compliant term, the model terms will apply. However, it may take longer to process an agreement application where the Commission must decide whether a flexibility or consultation term in the agreement is compliant in all respects. |
[1] Fair Work Act ss.186(6) and 737; Fair Work Regulations reg 6.01 and Sched 6.1; Form F17 Q2.15.
[2] Flexibility term – Fair Work Act ss.202–203; Fair Work Regulations reg 2.08 and Sched 2.2; Form F17 Q2.15; Consultation term – Fair Work Act s.205; Fair Work Regulations reg 2.09 and Sched 2.3; Form F17 Q2.15.