5-Minute HR Challenge: Spot the Compliance Mistake
The Situation
You are restructuring and identify that one role is no longer required. You advise the employee their role is redundant and provide them with notice. However, you didn’t meet with them beforehand to consult about the proposed change.
Is this compliant with the Fair Work Act?
No. The National Employment Standards (NES) and most modern awards require genuine consultation before a redundancy is confirmed. This involves meeting with the employee, explaining the proposed change, considering their feedback and exploring alternatives. Skipping this step can expose your business to unfair dismissal claims.
Restructure, Redesigning and Redefining Your Workplace Structure
Restructuring is more than just changing reporting lines — it’s about reshaping your workplace to align with business goals, adapt to change, and stay compliant under the Fair Work Act 2009 (Cth). Whether it’s mergers, redundancies, outsourcing, or digital transformation, careful planning is essential to reduce risks and protect both your business and your people.
Why It Matters
-
Unfair dismissal claims
- Breach of consultation obligations
- Reputational damage
- Loss of key talent
Getting it right means planning early, consulting transparently, and applying fair, objective selection criteria. Offering support services such as redeployment, counselling, or outplacement can also smooth the transition for employees.
Watch: The First Step to Getting Annualised Salaries Right
Restructures must be carefully planned, legally compliant, and communicated with fairness. A well-managed process reduces risk and supports employee engagement through change. For peace of mind, reach out to our team at [email protected] | 1300 720 004.