Fair Work (Model Terms) Determination 2025

This instrument, the Fair Work (Model Terms) Determination 2025, prescribes four model terms for use in enterprise agreements and in the context of transferring employees under copied State instruments. Mechanically it does the following.

It sets the model individual flexibility term that may be included in enterprise agreements, by publishing the text of that term in Schedule 1 (see section 5 of the Determination and Schedule 1). The Schedule specifies the permitted subject matter of an individual flexibility arrangement (IFA), procedural protections for employees, formal requirements (writing, signatures, specified content), notice and termination rules, a 14‑day obligation to give the employee a copy, an age‑related signature requirement (under 18), and that the IFA must leave the employee “better off overall” (Schedule 1, cll 1-10).
It sets the model consultation term for enterprise agreements in Schedule 2 (see s 6). That Schedule prescribes the employer’s consultation obligations where the employer has made a definite decision to introduce a major change likely to have a significant effect on employees, and where the employer proposes to change regular rosters or ordinary hours. It defines the type of information to be provided, the ability of employees to nominate representatives, the employer’s obligation to give genuine consideration to matters raised, and a confidentiality carve‑out for commercially sensitive information (Schedule 2, “Application”, “Consultation in relation to major workplace change”, “Consultation in relation to change to regular roster or ordinary hours of work”).
It prescribes a model dispute resolution term for enterprise agreements in Schedule 3 (see s 7). That term requires workplace‑level effort to resolve disputes first, provides for referral to the Fair Work Commission (FWC), and allows the FWC to mediate, conciliate and, if unable to resolve the matter, arbitrate and make binding determinations using its Act powers including interim relief. The Schedule also requires employees to continue to perform work while the dispute is being pursued, subject to safety exceptions (Schedule 3, cll 2-8).

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Commonwealth Coat of Arms of Australia

Fair Work (Model Terms) Determination 2025

The Fair Work Commission, constituted by the Full Bench comprising Vice President Gibian, Deputy President Dobson and Deputy President Butler, makes the following determination.

Dated 21 February 2025

VICE PRESIDENT

Contents

1 Name

2 Commencement

3 Authority

4 Definitions

5 Model flexibility term for enterprise agreements

6 Model consultation term for enterprise agreements

7 Model term for enterprise agreements about dealing with disputes

8 Model term for copied State instruments about dealing with disputes

Schedule 1—Model flexibility term for enterprise agreements

Schedule 2—Model consultation term for enterprise agreements

Schedule 3—Model term for enterprise agreements about dealing with disputes

Schedule 4—Model term for copied State instruments about dealing with disputes

1 Name

This instrument is the Fair Work (Model Terms) Determination 2025.

2 Commencement

(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this instrument The later of:(a) the day after this instrument is registered; and(b) the day on which Part 5 of Schedule 1 to the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 commences.

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3 Authority

This instrument is made under the following provisions of the Fair Work Act 2009:

(a) subsection 202(5);

(b) subsection 205(3);

(d) subsection 768BK(1A).

4 Definitions

In this instrument:

Act means the Fair Work Act 2009.

5 Model flexibility term for enterprise agreements

For the purposes of subsection 202(5) of the Act, the model flexibility term for enterprise agreements is set out in Schedule 1 to this instrument.

6 Model consultation term for enterprise agreements

For the purposes of subsection 205(3) of the Act, the model consultation term for enterprise agreements is set out in Schedule 2 to this instrument.

7 Model term for enterprise agreements about dealing with disputes

For the purposes of subsection 737(1) of the Act, the model term for dealing with disputes for enterprise agreements is set out in Schedule 3 to this instrument.

8 Model term for copied State instruments about dealing with disputes

For the purposes of subsection 768BK(1A) of the Act, the model term for settling disputes about matters arising under a copied State instrument for a transferring employee is set out in Schedule 4 to this instrument.

Schedule 1—Model flexibility term for enterprise agreements

Note: See section 5.

An employer and employee covered by this enterprise agreement may agree to make an individual flexibility arrangement to vary the effect of terms of the agreement if:
the arrangement deals with 1 or more of the following matters: 1. arrangements about when work is performed; 2. overtime rates; 3. penalty rates; 4. allowances; 5. leave loading; and
the arrangement meets the genuine needs of the employer and employee in relation to the matter or matters it deals with; and
the arrangement is genuinely agreed to by the employer and employee, without coercion or duress.
An individual flexibility arrangement may only be made after the individual employee has commenced employment with the employer.
An employer who wishes to initiate the making of an individual flexibility arrangement must:
give the employee a written proposal; and
if the employer is aware that the employee has, or should reasonably be aware that the employee may have, limited understanding of written English, take reasonable steps to ensure that the employee understands the proposal.
If the employer proposes to enter into an individual flexibility arrangement with an employee, the employer must meet with the employee to discuss the proposal prior to entering the individual flexibility arrangement if the employee requests such a meeting.
The employer must ensure that the terms of the individual flexibility arrangement:
are about permitted matters under section 172 of the Fair Work Act 2009; and
are not unlawful terms under section 194 of the Fair Work Act 2009; and
result in the employee being better off overall than the employee would have been if no individual flexibility arrangement were agreed to.
The employer must ensure that the individual flexibility arrangement:
is in writing; and
includes the name of the employer and employee; and
is signed by the employer and employee and, if the employee is under 18 years of age, is signed by a parent or guardian of the employee; and
includes details of: 1. the terms of the enterprise agreement that will be varied by the arrangement; and 2. how the arrangement will vary the effect of the terms; and 3. how the employee will be better off overall in relation to the terms and conditions of his or her employment as a result of the arrangement; and
states the day on which the arrangement commences; and
describes how the individual flexibility arrangement can be terminated.
The employer must give the employee a copy of the individual flexibility arrangement within 14 days after it is agreed to.
The employer or employee may terminate the individual flexibility arrangement:
at any time, by agreement in writing between the employer and the employee; or
by the employer or the employee giving 28 days written notice to the other party.
An individual flexibility arrangement terminated in accordance with clause (8)(b) ceases to have effect at the end of the period of notice required under that clause.
The employer or employee may use the dispute settlement procedure in this enterprise agreement to deal with disputes that may arise concerning the matters dealt with in the individual flexibility arrangement.

Note: In addition to this clause, the National Employment Standards of the Fair Work Act 2009 give some employees the right to request flexible working arrangements in certain circumstances.

Schedule 2—Model consultation term for enterprise agreements

Note: See section 6.

Application of consultation term

This term applies if the employer:
has made a definite decision to introduce a major change to production, program, organisation, structure or technology that is likely to have a significant effect on employees to which this enterprise agreement applies; or
proposes to introduce a change to the regular roster or ordinary hours of work of employees.

Consultation in relation to major workplace change

For a major change referred to in subclause (1)(a):
the employer must notify the relevant employees of the decision to introduce the major change; and
subclauses (3) to (9) apply.
The relevant employee or employees may advise the employer that a person or employee organisation is their representative for the purposes of the procedures in this clause in relation to a major workplace change.
If:
a relevant employee, or the relevant employees, advise the employer that a person or employee organisation is their representative for the purposes of consultation; and
the employee or employees advise the employer of the identity of the representative;

the employer must recognise the representative.

The employer must notify the relevant employees and their representatives (if any) of the decision to introduce the change.
As soon as practicable after making its decision, the employer must:
consult with the relevant employees and their representatives (if any), including by discussing with them:
the introduction of the change; and
the effect the change is likely to have on the employees; and
measures to avoid or reduce any adverse effect of the change on the employees; and
for the purposes of the consultation—provide, in writing, to the relevant employees and their representatives (if any):
all relevant information about the change including the nature of the change proposed; and
the reasons or justification for the change; and
information about the expected effects of the change on the employees; and
any other matters likely to affect the employees.

However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees or their representatives (if any).
The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees and their representatives (if any).
The employer will take reasonable steps to communicate the outcome of the consultation process including the consideration that was given to matters raised about the major workplace change by the relevant employees and their representatives (if any).
If a term in this agreement provides for the introduction of a major workplace change in relation to the enterprise of the employer, the requirements to consult contained in clauses (3) to (9) are taken not to apply.
In this term, a major workplace change is “likely to have a significant effect on employees” if it results in:
the termination of the employment of employees; or
major change in the composition, operation or size of the employer’s workforce or to the skills required of employees; or
the loss of, or reduction in, job or promotion opportunities; or
the loss of, or reduction in, job tenure or job security; or
the alteration of hours of work; or
the need for employees to be retrained or transferred to other work or locations; or
job restructuring.

Consultation in relation to change to regular roster or ordinary hours of work

For a change referred to in subclause (1)(b):
the employer must notify the relevant employees and their representatives (if any) in writing of the proposed change; and
subclauses (13) to (18) apply.
The relevant employee or employees may advise the employer that a person or employee organisation is their representative for the purposes of the procedures in this clause in relation to changes to regular rosters or ordinary hours of work.
If:
a relevant employee, or the relevant employees, advise the employer that a person or employee organisation is their representative for the purposes of consultation; and
the employee or employees advise the employer of the identity of the representative;

the employer must recognise the representative.

As soon as practicable after proposing to introduce the change, the employer must:
consult with the relevant employees and their representatives (if any) about the introduction of the change, including by discussing the change with them; and
for the purposes of the consultation—provide to the relevant employees and their representatives (if any):
all relevant information about the change, including the nature and expected duration of the change; and
information about what the employer reasonably believes will be the effects of the change on the employees (including any effect on the employee’s remuneration); and
information about any other matters that the employer reasonably believes are likely to affect the employees; and
invite the relevant employees and their representatives (if any) to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities).
However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees or their representatives (if any).
The employer must give prompt and genuine consideration to matters raised about the change by the relevant employees or their representatives (if any).
The employer will take reasonable steps to communicate the outcome of the consultation process including the consideration that was given to matters raised about the change to the regular roster or ordinary hours of work of employees by the relevant employees and their representatives (if any).

Definition

In this term:

relevant employees means the employees who may be affected by a change referred to in subclause (1).

Schedule 3—Model term for enterprise agreements about dealing with disputes

Note: See section 7.

If a dispute relates to:
a matter arising under the agreement; or
the National Employment Standards;

this term sets out procedures to settle the dispute.

The parties to a dispute referred to in this procedure may include:
an employee or employees covered by the agreement who are, or will be, affected by the dispute;
the employer or employers covered by the agreement; and
an employee organisation who:
has a member who it is entitled to represent and who is an employee referred to in (a); or
is covered by the enterprise agreement and entitled to the benefit of, or has a role or responsibility with respect to, the matter in dispute.
An employee who is a party to the dispute may advise the employer that a person or employee organisation is their representative for the purposes of the procedures in this term.
In the first instance, the parties to the dispute must try to resolve the dispute at the workplace level, by discussions between the relevant employee or employees, relevant supervisors and/or management and any relevant employee organisation.
If the discussions at the workplace level do not resolve the dispute, a party to the dispute may refer the matter to the Fair Work Commission.
The Fair Work Commission may deal with a dispute referred to it under subclause (5) even if the requirement for discussions in subclause (4) has not been complied with if the Fair Work Commission is satisfied that it is appropriate in all the circumstances to do so.
The Fair Work Commission may deal with the dispute in 2 stages:
the Fair Work Commission will first attempt to resolve the dispute in such manner as it considers appropriate, including by mediation, conciliation, expressing an opinion or making a recommendation; and
if the Fair Work Commission is unable to resolve the dispute at the first stage, the Fair Work Commission may then:
arbitrate the dispute; and
make a determination that is binding on the parties.
If the Fair Work Commission arbitrates the dispute:
it may also use any of the powers that are available to it under the Fair Work Act 2009 (Cth), including, but not limited to, the power to grant interim relief; and
a decision that the Commission makes when arbitrating a dispute is a decision for the purposes of Division 3 of Part 5-1 of the Fair Work Act 2009 (Cth) and a person aggrieved by the decision may seek to appeal the decision as provided for in that Act.

Subject to any order made by the Fair Work Commission under subclause (8)(a), while the parties are trying to resolve the dispute using the procedures in this term:
an employee must continue to perform work as the employee normally would unless the employee has a reasonable concern about an imminent risk to health or safety; and
an employee must comply with a direction given by the employer to perform other available work at the same workplace, or at another workplace, unless:
the work is not safe; or
applicable occupational health and safety legislation would not permit the work to be performed; or
the work is not appropriate for the employee to perform; or
there are other reasonable grounds for the employee to refuse to comply with the direction.
The parties to the dispute agree to be bound by a decision made by the Fair Work Commission in accordance with this term.

Note: In addition to this clause, theFair Work Act 2009 contains dispute resolution procedures as follows:

Request flexible working arrangements: section 65B

Change casual employment status: section 66M

Request an extension to unpaid parental leave: section 76B

Exercise an employee’s right to disconnect: section 333N

Schedule 4—Model term for copied State instruments about dealing with disputes

Note: See section 8.

This term sets out procedures to settle a dispute about a matter arising under a copied State instrument.
The parties to a dispute referred to in this procedure may include:
an employee or employees covered by the copied State instrument who are, or will be, affected by the dispute;
the employer or employers covered by the copied State instrument; and
an employee organisation who:
has a member who it is entitled to represent and who is an employee referred to in (a); or
is covered by the copied State instrument and entitled to the benefit of, or has a role or responsibility with respect to, the matter in dispute.
An employee who is a party to the dispute may advise the employer that a person or employee organisation is their representative for the purposes of the procedures in this term.
In the first instance, the parties to the dispute must try to resolve the dispute at the workplace level, by discussions between the relevant employee or employees, relevant supervisors and/or management and any relevant employee organisation.
If the discussions at the workplace level do not resolve the dispute, a party to the dispute may refer the matter to the Fair Work Commission.
The Fair Work Commission may deal with a dispute referred to it under subclause (5) even if the requirement for discussions in subclause (4) has not been complied with if the Fair Work Commission is satisfied that it is appropriate in all the circumstances to do so.
The Fair Work Commission may deal with the dispute in 2 stages:
the Fair Work Commission will first attempt to resolve the dispute in such manner as it considers appropriate, including by mediation, conciliation, expressing an opinion or making a recommendation; and
if the Fair Work Commission is unable to resolve the dispute at the first stage, the Fair Work Commission may then:
arbitrate the dispute; and
make a determination that is binding on the parties.
If the Fair Work Commission arbitrates the dispute:
it may also use any of the powers that are available to it under the Fair Work Act 2009 (Cth), including, but not limited to, the power to grant interim relief; and
a decision that the Commission makes when arbitrating a dispute is a decision for the purposes of Division 3 of Part 5-1 of the Fair Work Act 2009 (Cth) and a person aggrieved by the decision may seek to appeal the decision as provided for in that Act.
Subject to any order made by the Fair Work Commission under subclause (8)(a), while the parties are trying to resolve the dispute using the procedures in this term:
an employee must continue to perform work as the employee normally would unless the employee has a reasonable concern about an imminent risk to health or safety; and
an employee must comply with a direction given by the employer to perform other available work at the same workplace, or at another workplace, unless:
the work is not safe; or
applicable occupational health and safety legislation would not permit the work to be performed; or
the work is not appropriate for the employee to perform; or
there are other reasonable grounds for the employee to refuse to comply with the direction.
The parties to the dispute agree to be bound by a decision made by the Fair Work Commission in accordance with this term.

Note: In addition to this clause, theFair Work Act 2009 contains dispute resolution procedures as follows:

Request flexible working arrangements: section 65B

Change casual employment status: section 66M

Request an extension to unpaid parental leave: section 76B

Exercise an employee’s right to disconnect: section 333N

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Fair Work (Model Terms) Determination 2025

The Fair Work Commission, constituted by the Full Bench comprising Vice President Gibian, Deputy President Dobson and Deputy President Butler, makes the following determination.

Dated 21 February 2025

VICE PRESIDENT

Contents

1 Name

2 Commencement

3 Authority

4 Definitions

5 Model flexibility term for enterprise agreements

6 Model consultation term for enterprise agreements

7 Model term for enterprise agreements about dealing with disputes

8 Model term for copied State instruments about dealing with disputes

Schedule 1—Model flexibility term for enterprise agreements

Schedule 2—Model consultation term for enterprise agreements

Schedule 3—Model term for enterprise agreements about dealing with disputes

Schedule 4—Model term for copied State instruments about dealing with disputes

1 Name

This instrument is the Fair Work (Model Terms) Determination 2025.

2 Commencement

Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this instrument The later of:(a) the day after this instrument is registered; and(b) the day on which Part 5 of Schedule 1 to the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 commences.

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

The instrument organises three core regulatory concepts: individual flexibility arrangements, consultation over organisational/roster change, and multi‑step dispute resolution culminating in FWC arbitration. Each concept is expressed as a ready‑made contractual clause for enterprise agreements (Schedules 1-3) and for copied State instruments (Schedule 4).

Individual flexibility arrangements (Schedule 1)

Subject matter: an IFA may only vary enterprise agreement terms to deal with listed workplace matters, including hours, overtime rates, penalty rates, allowances, leave loading (Schedule 1, cl 1.1).
Substantive limits: the IFA must be about “permitted matters” under s 172 of the Fair Work Act 2009 and must not be an unlawful term under s 194 (Schedule 1, cl 6.1-6.2).
Substantive test: employers must ensure each IFA results in the employee being “better off overall” compared with not having the IFA (Schedule 1, cl 5.3).
Form and process: an IFA must be in writing, signed by employer and employee (and parent/guardian if employee under 18), specify the enterprise agreement terms varied, explain how the employee will be better off overall, state its commencement date and termination process, and provide the employee a copy within 14 days (Schedule 1, cll 6-7).
Procedural protections: IFAs may only be entered into after the employee has commenced employment (cl 2). Employers initiating an IFA must give a written proposal and, where the employee has limited understanding of written English, take reasonable steps to ensure the employee understands the proposal (cl 3). The employee can request a meeting to discuss the proposal before agreeing (cl 4). Either party may end the IFA by 28 days written notice, or by written agreement (cl 8-9). Disputes about IFAs may use the enterprise agreement’s dispute procedure (cl 10).

Consultation term (Schedule 2)

Triggering events: the consultation term applies where the employer has made a definite decision to introduce a “major change” likely to have a significant effect on relevant employees, or where an employer proposes to change regular rosters or ordinary hours (Schedule 2, “Application”).
Content of consultations: employers must notify relevant employees and their representatives (if any), provide all relevant information (nature, reasons, effects, and other matters likely to affect employees) in writing, and consult as soon as practicable (Schedule 2, cll 3-6 and cll 12-14).
Representative recognition: employees may nominate a representative or an employee organisation and the employer must recognise that representative (Schedule 2, cll 3.2-3.3 and cll 13.2-13.3).
Confidentiality carve‑out: the employer is not required to disclose confidential or commercially sensitive information, though it must give genuine consideration to matters raised in consultation and take reasonable steps to communicate the outcome (Schedule 2, cl 6.1, cl 6.2-6.4; cl 15.1-15.3).
Definition of “significant effect”: the Schedule lists outcomes that count as significant, for example termination of employment, major change to workforce composition, loss of promotion opportunities, alteration of hours, need for retraining or transfer, job restructuring (Schedule 2, “In this term”).

Dispute resolution term (Schedules 3 and 4)

Multi‑step process: parties must first attempt workplace‑level resolution through discussion between employees, supervisors/management and any employee organisation (Schedules 3 and 4, cl 2).
Referral to the FWC: if unresolved, a party may refer the dispute to the Fair Work Commission; the FWC may still deal with a dispute even if workplace discussions have not occurred where it considers it appropriate (Schedules 3 and 4, cll 3-4).
FWC powers and binding outcomes: the FWC will seek resolution by mediation/conciliation/recommendation, and if unresolved may arbitrate and make a binding determination. When arbitrating the FWC may use powers under the Fair Work Act, including interim relief. Decisions are treated as Division 3 of Part 5‑1 decisions under the Fair Work Act and are appealable as provided in that Act (Schedules 3 and 4, cll 5-6).
Work continuation: subject to any FWC order, employees must continue to work in the usual way while the dispute is addressed unless there is a reasonable concern about imminent risk to health or safety or other specified grounds for refusing directions (Schedules 3 and 4, cl 7).

The Determination therefore supplies standardised contractual language that embeds statutory interaction points: the IFA clause cross‑references s 172 and s 194 of the Fair Work Act; the dispute clauses cross‑reference Division 3 of Part 5‑1 (s 737 authority) and other statutory dispute rights are noted in the Schedules’ notes (for example s 65B, s 66M, s 76B, s 333N cited in the notes). The Determination is an administrative instrument that does not itself create criminal sanctions but relies on the Fair Work Act’s machinery, FWC powers and the “better off overall” test to shape behaviour.

Primary affected parties

Employers who are parties to an enterprise agreement: the model clauses are drafted for inclusion in enterprise agreements and impose specific procedural and formal duties on those employers (Schedules 1-3). The consultation and dispute terms require employers to notify, provide written information, meet and genuinely consider employee views in prescribed circumstances (Schedule 2).
Employees covered by an enterprise agreement: employees are given rights to be provided with written proposals for IFAs, to request a meeting, to nominate representatives for consultation and dispute procedures, to be given a copy of any IFA within 14 days, and to be protected by the “better off overall” requirement (Schedule 1, cll 3-7; Schedule 2, cll 3-6; Schedule 3, cll 1-2).
Employee organisations: unions or employee organisations can be recognised by employers as representatives for the purposes of consultation and dispute procedures and can be parties to disputes where they have a member concerned or have a role under the instrument (Schedule 2, cl 3.1-3.3; Schedule 3, cl 1.2).

Secondary affected groups and contexts

Employers and employees in states where industrial instruments are “copied State instruments” for transferring employees: Schedule 4 provides a model dispute procedure specifically for disputes arising under copied State instruments affecting transferring employees, so employers and employees in transfer situations will be directly affected by the model term if it is applied (s 8 and Schedule 4).
Human resources, payroll and in‑house legal teams: these professionals will need to design processes to comply with the formal requirements for IFAs (written, signatures, content), document “better off overall” comparisons, keep records (copies within 14 days), and manage consultation and dispute timelines and documentation.
Managers and supervisors at the workplace level: they carry the operational burden of undertaking first‑line dispute resolution, hosting consultation meetings, recognising employee representatives, and ensuring employees continue to perform work during dispute processes (Schedule 3, cl 2 and cl 7).
New hires, minors, and employees with limited English: the instrument treats these groups differently. An IFA may only be entered after the employee has started employment (Schedule 1, cl 2). If the employee is under 18, a parent or guardian must sign the IFA (Schedule 1, cl 6.3). If the employer is, or should reasonably be, aware that the employee may have limited understanding of written English, the employer must take reasonable steps to ensure the employee understands the IFA proposal (Schedule 1, cl 3.2).

Who does not get a direct entitlement from the Determination

Parties outside enterprise agreements or copied State instruments: the model terms apply for the purposes specified in the Fair Work Act (s 5, s 6, s 7 and s 8), so they are relevant where enterprise agreements or copied State instruments are the legal vehicle. The Determination does not itself create standalone statutory individual rights beyond what is embedded in those instruments and the Fair Work Act.
The Determination does not itself create civil penalties or criminal offences within its text. Enforcement and remedy mechanisms are via agreement terms, FWC processes and the Fair Work Act powers referenced in the Schedules.

In sum, the Determination affects employers and employees who operate under enterprise agreements and those involved in transfer arrangements under copied State instruments by prescribing model contract language that imposes procedural, form and substantiative constraints and by channeling disputes to workplace processes and to the Fair Work Commission.

This Determination sets out precise duties for employers and corresponding rights (and some duties) for employees. Those duties and rights are primarily located in the Schedules and mirror the statutory policy intent to standardise certain clauses. Key items follow, with references to the relevant Schedules.

Individual flexibility arrangements (Schedule 1)

Duties on employers:
- Only propose an IFA covering listed matters (when work is performed, overtime rates, penalty rates, allowances, leave loading) and ensure the IFA meets the genuine needs of both parties (Schedule 1, cl 1.1-1.3).
- Only make an IFA after the individual has commenced employment (cl 2).
- Give a written proposal to the employee at the outset (cl 3.1).
- If the employer knows or ought reasonably to know the employee has limited understanding of written English, take reasonable steps to ensure the employee understands the proposal (cl 3.2).
- Meet the employee to discuss the proposal if the employee requests such a meeting (cl 4).
- Ensure the IFA concerns permitted matters under s 172 and is not an unlawful term under s 194 (cl 6.1-6.2).
- Ensure the IFA results in the employee being “better off overall” (cl 5.3).
- Ensure the IFA is in writing, contains specified details (names, terms varied, how employee will be better off, commencement day, termination), and is signed by both parties (and parent/guardian if under 18) (cl 6).
- Give the employee a copy of the signed IFA within 14 days (cl 7).
Rights (and limited duties) of employees:
- Right to be provided with a written proposal and, if requested, a meeting to discuss it (cll 3-4).
- Right to have the IFA in writing, with specified contents and to receive a copy within 14 days (cll 6-7).
- Right to representation; an IFA may be subject to dispute settlement under the enterprise agreement (cl 10).
- Right to terminate the IFA, by written agreement or by giving 28 days written notice (cl 8-9).
- Protection from coercion: the IFA must be “genuinely agreed to” without coercion or duress (cl 1.3).

Consultation obligations (Schedule 2)

Employer duties:
- Notify relevant employees where a “definite decision” has been made to introduce a major change, or where a proposal to change regular rosters/ordinary hours is proposed (Schedule 2, “Application”; cl 1 and cl 11).
- Provide relevant employees and their representatives with all relevant information in writing about the nature, reasons and expected effects of the change, and other matters likely to affect employees (cl 4.2 and cl 13.3).
- Recognise employee‑nominated representatives and consult with them (cl 3.2-3.3 and cl 12.2-12.3).
- Give prompt and genuine consideration to matters raised and take reasonable steps to communicate consultation outcomes (cl 6.2-6.4 and cl 15.2-15.3).
- The employer is not required to disclose confidential or commercially sensitive information, but it must still provide relevant information as far as possible (cl 6.1 and cl 15.1).
Employee rights:
- Right to be notified and consulted, and to nominate a representative (cl 3.1 and cl 12.1).
- Right to have their views considered and to be informed of consultation outcomes (cl 6.2-6.4 and cl 15.2-15.3).

Dispute settlement (Schedules 3 and 4)

Duties/expectations on parties:
- Parties must attempt to resolve disputes at workplace level before referring them to the FWC (Schedule 3, cl 2; Schedule 4, cl 2).
- If unresolved, parties may refer disputes to the FWC which will attempt resolution and may arbitrate and make binding decisions (Schedule 3, cl 4-6; Schedule 4, cl 4-6).
- While disputes are being pursued parties must generally continue to perform work as normal unless there is a safety reason or other specified grounds to refuse direction; compliance with lawful directions is required (Schedule 3, cl 7; Schedule 4, cl 7).
Rights established by the dispute clause:
- Right to have the FWC mediate, conciliate and, if necessary, arbitrate and make a binding determination; the FWC may use powers under the Fair Work Act including interim relief (Schedule 3, cl 5-6; Schedule 4, cl 5-6).
- Parties agree to be bound by a Fair Work Commission decision made under the term (Schedule 3, cl 8; Schedule 4, cl 8).
- Right to representation by an employee organisation in the dispute if entitled (Schedule 3, cl 1.2; Schedule 4, cl 2.3).

Cross‑references to statutory rights

The Determination explicitly requires IFAs to be about permitted matters under s 172 and not to be unlawful terms under s 194. That links the model contractual duties to the statutory limits and to the NES (Schedule 1, cl 5 & cl 6; note about NES).
The Schedules note other statutory dispute resolution rights (e.g. s 65B, s 66M, s 76B, s 333N in the notes), indicating that the model terms operate alongside, not instead of, existing statutory procedures.

Overall, the Determination converts statutory authority into standard contractual obligations, placing formal and procedural duties on employers and creating repeatable rights and processes for employees and their representatives when the model terms are adopted into agreements.

The Determination itself does not set out distinct monetary penalties or criminal offences within its text. Enforcement and remedial mechanisms flow from the Fair Work Act and the dispute settlement architecture that the model terms embed. The instrument relies on two principal enforcement channels: dispute resolution through the Fair Work Commission and the statutory constraints imported by cross‑reference (for example the “permitted matters” and “unlawful terms” tests).

Fair Work Commission as enforcement gateway

The dispute terms in Schedules 3 and 4 enable parties to refer unresolved disputes to the Fair Work Commission. The FWC may attempt resolution by mediation, conciliation or recommendation, and if unsuccessful may arbitrate and make a binding determination (Schedule 3, cl 5; Schedule 4, cl 5). The determination states that FWC decisions made when arbitrating are decisions for the purposes of Division 3 of Part 5‑1 of the Fair Work Act, and persons aggrieved by such decisions may seek to appeal as provided under the Act (Schedule 3, cl 5.2; Schedule 4, cl 5.2). Thus enforcement of the model dispute term is practical and institutional: the FWC’s powers under the Fair Work Act can be invoked to produce binding outcomes and interim relief.
The FWC’s capacity to grant interim relief when arbitrating is explicitly preserved (Schedule 3, cl 5.1.1; Schedule 4, cl 5.1.1). That provides a means to preserve positions pending arbitration outcomes, which functions as a practical enforcement tool.

Statutory linkages that bring statutory enforcement tools to bear

The model IFA term requires that IFAs be about “permitted matters” (s 172) and not be unlawful terms under s 194 of the Fair Work Act (Schedule 1, cl 6.1-6.2). Those statutory provisions birth their own enforcement consequences under the Act; for example, the Fair Work Act contains mechanisms for dealing with contraventions of agreement terms, including making orders, reinstatement, and penalties in certain circumstances , although the Determination itself does not catalogue those remedies.
The instrument’s notes highlight overlap with statutory rights such as flexible working requests and casual conversion (Notes at end of Schedule 3 and Schedule 4). Enforcement of those statutory rights follows the Act’s mechanisms; the Determination does not displace these statutory remedies.

What is not in the Determination

There is no separate schedule of pecuniary penalties in the Determination text for contravention of the model terms. The instrument prescribes contract language and process rather than creating a standalone new penalty regime.
There is no administrative fines regime specific to the Determination issued by the Fair Work Commission or by the maker of the Determination in this instrument. Enforcement proceeds by normal Fair Work Act channels: FWC dispute resolution and, where the statutory tests (s 172, s 194 etc.) are implicated, the remedies and penalties available under the Fair Work Act.

Practical enforcement implications

A party seeking enforcement would typically first use the agreement’s dispute settlement clause to take the matter to the FWC under the model dispute term (Schedule 3, cl 3-6). Should the FWC make binding determinations under its statutory powers, those determinations become the mechanism for redress and any non‑compliance could be subject to further enforcement in the courts or under the Fair Work Act as provided.
The practical deterrent effect of the Determination thus rests on the FWC’s capacity to (i) make binding orders, (ii) grant interim relief pending resolution and (iii) invoke other statutory enforcement mechanisms embedded in the Fair Work Act where agreement terms or statutory provisions have been breached.

In sum, the Determination embeds enforcement within the existing Fair Work architecture rather than creating a separate penalty schedule: parties are expected to use the FWC’s dispute and remedial powers and the statutory limits in the Fair Work Act to secure compliance.

This Determination is drafted under and expressly tied to the Fair Work Act 2009 and is intended to operate within the Act’s statutory framework. The Schedules repeatedly cross‑reference statutory provisions, so interaction with the Fair Work Act and the National Employment Standards (NES) is central.

Primary statutory interactions

Statutory authority: the Determination is made under s 202(5), s 205(3), s 737(1) and s 768BK(1A) of the Fair Work Act 2009 (s 3). Those sections provide the Commission with power to determine model terms for enterprise agreements, model consultation terms, model dispute terms, and model terms for copied State instruments affecting transferring employees respectively. The Determination gives textual effect to those powers by publishing the model terms (s 5-8).
Permitted and unlawful terms: Schedule 1 requires any IFA to be about “permitted matters” under s 172 of the Fair Work Act and not to be an unlawful term under s 194 (Schedule 1, cl 6.1-6.2). This imports substantive statutory constraints directly into the contractual model term and means that interpretation of what is a permitted matter or an unlawful term will be governed by the Fair Work Act’s definitions and jurisprudence.
Division 3 of Part 5‑1: the dispute Schedules treat FWC decisions made when arbitrating as decisions for the purposes of Division 3 of Part 5‑1 of the Fair Work Act and state that aggrieved persons may appeal as provided in that Act (Schedule 3, cl 5.2; Schedule 4, cl 5.2). That locates appellate pathways in the Fair Work Act.

NES and other statutory rights

The Determination recognises that the NES continue to provide separate rights (notably the right to request flexible working arrangements). Schedule 1 contains a note stating that, in addition to the clause, the NES give some employees the right to request flexible working arrangements in certain circumstances. Schedules 3 and 4 include notes listing statutory dispute procedures such as s 65B (request flexible working arrangements), s 66M (change casual employment status), s 76B (request extension to unpaid parental leave), and s 333N (right to disconnect). Those notes indicate that the model terms are supplementary to statutory rights, not replacements.
Confidentiality and commercial sensitivity: the consultation term (Schedule 2) allows the employer not to disclose confidential or commercially sensitive information to employees or their representatives, an interaction that balances consultation duties with other legal obligations such as fiduciary duties, confidentiality obligations, trade secrets or competition concerns. Where disclosure is limited, employers are still required to provide all relevant information to the extent they can (Schedule 2, cl 4.2 and cl 13.3; cl 6.1 and cl 15.1).

Interaction with State instruments and transfers

Schedule 4 supplies the model term for disputes about matters arising under copied State instruments affecting transferring employees. That term is made under s 768BK(1A) of the Fair Work Act, and thus the Determination explicitly governs how dispute resolution interacts with State instrument transfers under the Act’s transfer provisions. By doing so the Determination channels disputes concerning copied State instruments into the FWC process described in Schedule 4.

Procedural and evidential interactions

The Determination’s requirements for formalities (writing, signatures, specified content) for IFAs may interact with contract law principles (offer and acceptance, capacity, duress/undue influence). For under‑18 employees the IFA requires a parent or guardian signature (Schedule 1, cl 6.3), tying the IFA to capacity doctrines under common law and state guardianship regimes.
The determination’s requirement that employers “take reasonable steps” to ensure an employee understands a proposal where the employee has limited written English proficiency may interact with anti‑discrimination law and workplace safety obligations, since failure to take reasonable steps could increase occupational risks or expose employers to claims under discrimination legislation when language barriers are ignored.

What the Determination does not overrule

It does not displace or override statutory rights and remedies under the Fair Work Act. The model terms operate for the purpose of the specified Act subsections and integrate with, rather than supplant, the Act’s substantive and procedural protections.
It does not attempt to define s 172 or s 194 content; it assumes those statutory definitions and case law will govern contested boundaries of permitted or unlawful terms.

Overall, the Determination is an instrument that standardises model contractual language while explicitly anchoring that language to the Fair Work Act’s statutory framework and to the NES, leaving substantive statutory interpretation and legal remedies to the Fair Work Act and the Commission.

The text provided is the Determination as made by the Full Bench of the Fair Work Commission on 21 February 2025 and carries internal commencement instructions and advisory notes. The instrument’s own amendment history in the provided text is minimal and procedural; the document records only original commencement mechanics and a “note” about the commencement table.

Key points found in the instrument

Date of making: the Determination is dated 21 February 2025 (front matter).
Commencement mechanics: section 2 contains a commencement table. The whole instrument commences on the later of two dates: (a) the day after this instrument is registered; and (b) the day on which Part 5 of Schedule 1 to the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 commences (s 2(1) and the commencement table). The instrument therefore links its practical start date to the commencement of a specific provision in a named amending Act (the Closing Loopholes No. 2 Act 2024).
Non‑amendment note: the commencement table includes a standard note that the table relates only to the provisions of the instrument “as originally made” and will not be amended to deal with later amendments of the instrument (s 2, “Note”). That is a meta‑procedural statement rather than an amendment history.

What is not present

The instrument text as provided contains no record of subsequent amendments, revocations, or prior versions. There is no schedule of amendments, no list of historical versions, and no notation of transitional provisions beyond the conditional commencement clause. Consequently, the provided instrument appears as the original determinate text, and nothing in the document indicates that it has been amended after registration.
There are no side‑by‑side comparative tables showing how these model terms revise previous model terms, because the document does not assert it is replacing an earlier Determination. The provided material simply sets out the model terms now.

Implications for practitioners

Because the Determination ties its commencement to a provision in the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, practitioners must check the commencement of that Act provision to determine when the Determination comes into legal effect (s 2(1)). This linkage is the only schedule‑level conditionality visible in the instrument.
Any further amendments to the Determination, or later replacement model terms, would be recorded in subsequent instruments or legislative amendments outside the text provided. Users should consult the Federal Register of Legislation or the Fair Work Commission’s published instruments to detect subsequent changes.

In sum, the Determination itself contains an internal commencement history and was made on 21 February 2025. The instrument’s text does not record any subsequent amendments; it is presented as the primary text for the model terms as originally made.

The instrument as presented contains no judicial decisions, no references to litigation, and does not cite any cases. The Determination is an administrative instrument produced by the Fair Work Commission Full Bench and not a judicial opinion. There is therefore no litigation history contained within the source text to summarise.

Observed litigation vectors and legal issues that are present in the text and likely to be litigated (text‑grounded) Although the text contains no past litigation, it contains multiple provisions where legal disagreement could be reasonably anticipated. These are not predictions of particular cases but are logical dispute vectors emerging from the instrument’s content.

“Better off overall” test in IFAs (Schedule 1, cl 5.3): The clause places a substantive burden on employers to ensure an employee will be “better off overall” if an IFA is entered. Determining whether an employee is in fact better off involves factual and methodological questions (what pay components to include, treatment of future accruals, hours, penalty rates, allowances, leave loading). Disputes about methodology and factual comparisons are natural candidates for FWC referral under the model dispute clause (Schedule 3), and potentially for review under Division 3 of Part 5‑1 of the Fair Work Act once the FWC makes a determination (Schedule 3, cl 5.2).
“Genuine agreement” and coercion (Schedule 1, cl 1.3): The model term requires that the IFA be “genuinely agreed to … without coercion or duress.” Assessing whether agreement was genuinely given may raise contested questions of fact and law concerning the circumstances in which the IFA was proposed and signed. These factual disputes typically are the subject of FWC proceedings.
Language and comprehension duties (Schedule 1, cl 3.2): The employer must take reasonable steps to ensure comprehension where the employee has limited understanding of written English. Litigable questions could include what constitutes “reasonable steps” in the circumstances.
Scope of “permitted matters” and “unlawful terms” (Schedule 1, cl 6.1-6.2): The model term imports statutory concepts (s 172 and s 194 of the Fair Work Act). Boundaries of those statutory concepts have been subject to legal interpretation and will continue to generate disputes where employers and employees disagree on whether an IFA’s subject matter is permissible or unlawful.
Consultation adequacy and confidential information carve‑out (Schedule 2): The Schedule obliges employers to provide “all relevant information” but permits withholding “confidential or commercially sensitive” information. Litigation could revolve around what information was relevant and whether the employer’s withholding was justified, and whether the employer gave “prompt and genuine consideration” to matters raised.
Application and enforcement of the dispute clause (Schedules 3 & 4): The Schedules authorise the FWC to deal with disputes and, if appropriate, to arbitrate and make binding determinations. Appeals against such determinations are available under Division 3 Part 5‑1 of the Fair Work Act (Schedule 3, cl 5.2). Litigation could therefore arise in the context of appeals from FWC arbitral decisions, or in collateral proceedings concerning compliance with FWC orders.

Practical consequences for litigation strategy

The Determination channels many disputes to the FWC, so initial remedies and fact‑finding are likely to be concentrated within that tribunal before matters reach federal court review or appeal channels available under the Fair Work Act. The text explicitly contemplates that FWC determinations are binding and appealable under the Act (Schedule 3, cl 5.2; Schedule 4, cl 5.2).
Because the model clauses include process‑based protections (written proposals, meetings, provision of information), litigation may often depend on documentary evidence (copies of IFAs, written proposals, evidence of consultation steps and records of what information was provided). The model terms therefore create predictable evidentiary nodes.

To reiterate, no specific cases or litigation outcomes are cited in the instrument text. The above identification of potential litigation vectors is grounded in the instrument’s language and the procedural and substantive hooks it creates within the Fair Work Act framework.

The Determination contains several detailed procedural and substantive requirements that can produce operational and legal surprises if overlooked. Below are specific practical “gotchas” grounded in the text.

“Better off overall” is an explicit and non‑trivial test (Schedule 1, cl 5.3)

The IFA is only valid if the employer ensures the employee will be better off overall compared with the default enterprise agreement terms. This is not merely a declaration; an employer should document the comparative calculation. Failure to evidence this comparison risks successful challenge under the enterprise agreement’s dispute procedure or a finding that the IFA is invalid.

IFAs only after employment commences (Schedule 1, cl 2)

The model term forbids pre‑commencement IFAs. Signing an IFA conditionally as part of an offer to a prospective employee risks invalidity under the model clause.

Limited English requirement creates procedural obligations (Schedule 1, cl 3.2)

If the employer is aware, or ought reasonably to be aware, that the employee may have limited understanding of written English, the employer must take “reasonable steps” to ensure comprehension. The instrument does not define “reasonable steps”. Reasonable steps could include providing translations, using interpreters, or allowing a representative to explain the proposal; absence of such steps could be the basis for a later dispute.

Parent/guardian signature for under‑18s (Schedule 1, cl 6.3)

For employees under 18, a parent or guardian must sign the IFA. Relying on an under‑18 employee’s signature alone will not comply with the model term.

Narrow subject matter list for IFAs (Schedule 1, cl 1.1)

Schedule 1 lists specific matters an IFA may deal with. Trying to convert or vary other agreement terms using an IFA in the form of this model clause could fall outside the permitted scope and be vulnerable to challenge.

Written proposal and meeting obligations (Schedule 1, cll 3-4)

Employers initiating an IFA must give a written proposal and must meet if the employee requests. Failing to provide the proposal in writing or refusing a requested meeting can be material procedural non‑compliance.

Timing and record supply (Schedule 1, cl 7)

Employers must give the employee a copy of the signed IFA within 14 days. Misplacing or failing to give a copy creates a straightforward technical breach.

Consultation obligations can be displaced by an express term (Schedule 2, cl 6.4)

If an enterprise agreement already contains a term providing for the introduction of a major workplace change, the consultation requirements in clauses 3-9 are taken not to apply. Practitioners must check existing agreement wording; in some contexts the employer’s existing agreement may already permit a change without the model consultation steps.

Confidentiality carve‑out vs “all relevant information” (Schedule 2, cll 4.2, 6.1, 13.3, 15.1)

Employers need to balance the obligation to provide “all relevant information” with the right not to disclose confidential or commercially sensitive information. What is “relevant” and what is “commercially sensitive” may be contested. Employers should record reasons for nondisclosure and consider providing redacted material or summaries to mitigate risk.

Work continuation during disputes (Schedules 3 & 4, cl 7)

While parties pursue disputes under the model term, employees must normally continue to perform work as usual unless there is a reasonable concern about imminent risk to health or safety or another listed ground. Employees walking off the job during a dispute could expose themselves to disciplinary consequences if the walk‑off is not justified under the clause exceptions.

FWC can hear disputes even if workplace procedures were not followed (Schedules 3 & 4, cl 4)

The FWC may deal with disputes even if parties did not comply with workplace discussion requirements if the Commission is satisfied it is appropriate in all the circumstances. That reduces the protective effect of procedural defaults for employers who rely on procedural non‑compliance to block referrals.

Model terms are not exhaustive of statutory entitlements (Schedules 1, 3, 4 notes)

The instrument’s notes explicitly remind users that statutory rights such as requests for flexible working arrangements, casual conversion, parental leave extensions, and the right to disconnect exist separately. Employers cannot contract out of those statutory entitlements by relying solely on the model terms.

Termination and notice for IFAs (Schedule 1, cl 8-9)

Either party can terminate an IFA by agreement in writing at any time or by giving 28 days written notice. Employers must track notice periods and ensure that subsequent reversion to agreement terms is correctly applied at the end of the notice period.

Dispute decisions are binding and appealable under the Fair Work Act (Schedule 3, cl 5.2; Schedule 4, cl 5.2)

When the FWC arbitrates, its decision is binding on the parties and is a decision for the purposes of Division 3 of Part 5‑1 of the Fair Work Act. Parties must therefore be prepared for binding outcomes and for the appeal pathways that apply under the Act.

These “gotchas” are practical operational and legal pitfalls that flow from the instrument’s text. Compliance requires careful documentation, clear process design and attention to the interplay between written formalities and statutory limits.

Compliance requires translating the model text into workplace processes, agreement drafting practice, recordkeeping and training. Below is a practical compliance checklist for employers, with employee and representative considerations. Each item is rooted in the instrument’s requirements and cross‑references where appropriate.

Contract drafting and enterprise agreement decisions

Decide whether to adopt the model clauses verbatim into the enterprise agreement or to adapt them. If adapting, ensure any variation does not reduce the protections the model requires, for example on writing, better off overall, representation and dispute paths (see Schedules 1-3).
Where the enterprise agreement already has an express term dealing with major workplace change, note that the consultation steps in Schedule 2, cll 3-9 do not apply (Schedule 2, cl 6.4). Check existing wording to ensure clarity and incorporate any intended carve‑outs subject to legal advice.

Individual flexibility arrangements (Schedule 1)

Develop an IFA template that contains:
- Names of employer and employee;
- Identification of the enterprise agreement terms being varied;
- Clear description of how the IFA varies those terms;
- A worked “better off overall” comparison that uses transparent assumptions and calculations;
- Commencement date and termination process;
- Signature block for employer and employee and, where relevant, parent/guardian signature for employees under 18 (Schedule 1, cl 6).
Make sure IFAs are only offered after employment has commenced (Schedule 1, cl 2).
Create a written proposal form to be provided to the employee at initiation (Schedule 1, cl 3.1).
Establish procedures for ensuring comprehension where the employee may have limited written English, for example:
- Offer translated documents or interpreter assistance;
- Allow an independent third party or union representative to explain the proposal;
- Keep records of steps taken to secure comprehension (Schedule 1, cl 3.2).
Implement an IFA register to store signed IFAs and record the date on which an IFA copy was provided to the employee. Ensure the employee is given a copy within 14 days (Schedule 1, cl 7).
Train HR and payroll staff to apply the “better off overall” test consistently and to keep supporting calculations and assumptions to justify the position (Schedule 1, cl 5.3).

Consultation processes (Schedule 2)

Define triggers for consultation: a “definite decision” to introduce a major change or any proposal to change regular rosters/ordinary hours (Schedule 2, “Application”).
Create template written notifications and information packs that include:
- The nature of the proposed change;
- The reasons or justification for the change;
- Expected effects on employees;
- Any other matters likely to affect employees;
- Duration and expected timing (Schedule 2, cl 4.2 and cl 13.3).
Implement a representative recognition checklist so that when an employee or group nominates a representative or employee organisation, the employer formally recognises the representative and records the nomination (Schedule 2, cl 3.2 and cl 12.2).
Institutionalise meeting procedures:
- Schedule consultations as soon as practicable;
- Keep minutes and records of matters raised and the employer’s consideration of those matters;
- Record outcomes and explanations given to participants as to how their concerns were considered (Schedule 2, cl 6.2-6.4 and cl 15.2-15.3).
Prepare redaction procedures for confidential or commercially sensitive information: where full disclosure is not possible, provide an adequate summary or redacted materials and document reasons for nondisclosure (Schedule 2, cl 6.1 and cl 15.1).

Dispute management and FWC engagement (Schedules 3 and 4)

Maintain a structured workplace dispute escalation pathway that mirrors the model term:
- First attempt workplace‑level resolution through documented discussions involving the employee(s), supervisors/management, and any employee organisation (Schedule 3, cl 2).
- If unresolved, prepare the referral package for the FWC: chronology, documents, copies of communications, minutes, and evidence of attempts to resolve at workplace level (Schedule 3, cl 3).
Educate managers and employees about the work continuation requirement while a dispute proceeds, unless there is a reasonable safety concern (Schedule 3, cl 7). Ensure OH&S protocols are respected and that managers know the grounds upon which an employee may lawfully refuse a direction.
Have legal support or external counsel available to prepare for potential FWC mediation/arbitration, and understand the appellate consequences of an FWC arbitral determination as a Division 3 Part 5‑1 decision (Schedule 3, cl 5.2).

Recordkeeping, training and audit trails

Record and retain:
- Written IFA proposals;
- Signed IFAs and dates copies were given to employees;
- “Better off overall” calculations and supporting data;
- Consultation notices and written materials provided to employees and representatives;
- Minutes and outcomes of consultation and dispute meetings;
- Evidence of reasonable steps taken where employees have limited written English (Schedules 1-3).
Audit regularly (quarterly or on specified triggers) to ensure compliance with the 14‑day copy requirement, the 28‑day notice termination rule for IFAs and the consultation notice and information delivery processes.

Policy and HR updates

Update enterprise agreement annexures, workplace policies and HR manuals to reflect the model terms or the chosen variant. Ensure policy documents instruct managers to follow the model term’s steps before taking action that might otherwise trigger disputes.
Provide training to line managers and HR staff on:
- How to present IFAs and run the written proposal process (Schedule 1, cll 3-4);
- How to carry out meaningful consultation and document “genuine consideration” (Schedule 2, cll 4-6 and cll 13-15);
- How to manage workplace disputes through the prescribed steps before referring to the FWC (Schedule 3, cl 2).

Engaging employee representatives

Proactively engage with recognised employee organisations and familiarise them with the enterprise agreement’s dispute and consultation procedures so that when representatives are nominated, the employer’s recognition and consultation steps can proceed smoothly (Schedule 2, cl 3.1-3.3; Schedule 3, cl 1.2).

Special situations and risk management

For under‑18 employees, ensure parent/guardian involvement and signatures for IFAs (Schedule 1, cl 6.3).
In transfer situations involving copied State instruments, apply Schedule 4’s dispute term and coordinate with any transferring‑employer documentation and transitional arrangements (s 8; Schedule 4).
If the workplace faces a major change that will likely cause termination, redeployment, or retraining, plan consultation early and document the employer’s justification for any commercially sensitive nondisclosures (Schedule 2, definition of “significant effect” and cl 6.1).

Following the checklist above will help employers align policies and practices with the model terms. Documentation and training are central: the instrument’s obligations are procedural as much as substantive, and documentary evidence of compliance will be the principal means of defending a position should a dispute be referred to the Fair Work Commission.

Fair Work (Model Terms) Determination 2025

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