What a properly managed restructure and redundancy process involves — from building the business case through consultation, communication, redeployment and managing risk along the way.
General guidance only. This article explains how a restructure and redundancy process commonly works, in plain language, to help you understand the process. It is not legal advice and does not replace advice tailored to your situation. Awards, agreements and the law set specific obligations — where formal legal advice is required, we can work alongside appropriately qualified legal advisors.
Restructures and redundancies affect people’s livelihoods, so they are emotionally charged and carry real legal and reputational risk. A clear, well-documented process protects the business, treats people with respect, and reduces the chance of disputes or unfair dismissal claims. The goal is a genuine, defensible process — not a predetermined outcome dressed up as consultation.
Every restructure should start with a clear reason. A genuine redundancy is generally one where the role — not the person — is no longer required because of operational change. Be clear about:
Documenting the rationale early keeps decisions consistent and demonstrates the change is genuine.
Many awards and enterprise agreements contain consultation requirements that apply when there are major workplace changes likely to have significant effects on employees. Consultation is meaningful only when it happens before final decisions are locked in. In practice, genuine consultation usually involves:
Check the relevant award or agreement for the specific consultation obligations that apply — they vary, and they matter.
How a change is communicated shapes how people experience it. Plan your communication carefully: who is told what, when, by whom, and how questions will be handled. Be honest and clear, avoid leaks and mixed messages, and make sure managers are briefed and supported to have difficult conversations consistently and with empathy.
Where some but not all roles in a group are affected, you need a fair and objective way to select which positions are made redundant — based on relevant, defensible criteria rather than personal preference. Before confirming a redundancy, you are generally expected to consider whether the employee could reasonably be redeployed elsewhere in the business (or an associated entity). Genuinely exploring redeployment is an important part of a fair process.
Affected employees are generally entitled to notice (or payment in lieu) and, in many cases, redundancy pay, along with any other entitlements under their contract, an award or an agreement. Entitlements depend on factors such as length of service, the instrument that applies and the size of the business. Because these rules are specific and getting them wrong is costly, confirm the exact entitlements for each situation and seek advice where needed. (This is general information, not legal advice.)
Uncertainty, job insecurity and poorly managed change are recognised psychosocial hazards. Restructures can affect not only those whose roles are at risk but also the employees who remain. Reduce the risk by communicating clearly and promptly, keeping timeframes as short as is practical, treating people with dignity, and offering support such as employee assistance. How you handle the people side often determines the lasting impact on your team.
Keep clear records throughout — the business case, consultation steps and feedback, selection reasoning, redeployment efforts, and the communications and decisions made. Good documentation shows the process was genuine and fair, and is invaluable if a decision is later questioned.
Once the change is implemented, take stock. Check that the new structure is working as intended, that remaining workloads are sustainable, and that morale and wellbeing are holding up. A short review helps you adjust early and avoid creating new problems — including new psychosocial risks — in the months that follow.
If you are planning a restructure and want to manage it properly and fairly, Robust HR can help you design and run the process from start to finish.