As businesses navigate an era of rapid globalisation and economic shifts, global restructures are becoming an increasingly common.
For Australian employers, these restructures present both opportunities and challenges and organisations must carefully address key employment issues to ensure a smooth transition while safeguarding the interests of employees.
Australia has a robust legal framework that governs employment relations, with strict protections for workers under the Fair Work Act. Employers involved in a global restructure must be mindful of rules surrounding consultation, notice periods, and severance pay. Consultation with employee representatives, particularly in unionised sectors, may be mandatory before making any major employment changes.
Failure to comply can result in legal disputes and reputational damage. Businesses restructuring their Australian workforce must ensure they meet these obligations when implementing layoffs or role changes.
Restructuring often leads to layoffs or redeployment of employees across different locations. Under Australian law, to protect against a claim of unfair dismissal, the redundancy must be genuine, meaning the role is no longer required within the business. Employers must ensure affected employees receive appropriate severance pay and potentially also consider allowing access to support programs such as outplacement services.
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