Rising restructuring activity is catching businesses out – here's what HR leaders need to know
As redundancy activity surges across Australia, employment lawyers are warning that many businesses are still getting the legal process dangerously wrong – exposing themselves to unfair dismissal claims, civil penalties, and in serious cases, uncapped compensation under the Fair Work Act 2009.
LegalVision, a commercial law firm operating across Australia, has recorded a 20–30% increase in redundancy and restructuring enquiries over the past 12 months. Joel Hayden, employment practice group leader at LegalVision in Australia, says the rise is being driven by cost pressures in construction, retail, and technology – with AI beginning to feature in a growing minority of cases.
"Around one in five clients now raise automation or efficiency tools as part of broader restructuring decisions," Hayden said. "Whilst AI is coming up in a growing number of discussions, it still represents a minority of cases. Most restructures are still driven by cost and efficiency rather than full automation."
Despite the volume of restructuring activity, Hayden says the errors employers make are consistent and avoidable.
"The most common mistake is treating redundancy as a quick cost-cutting exercise rather than a structured legal process," he said. "We often see employers deciding on the individual first, then trying to justify the role as redundant afterwards, which exposes them...
Senator Flávio Bolsonaro (PL-RJ), son of former Brazilian president Jair Bolsonaro and a presidential hopeful in this year's election, spread false claims about Brazil's electronic voting machines ...