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When you make a workplace change that has an adverse effect on one or more of your employees, you will be exposed to legal risk.

Workplace changes include;

  • Restructuring
  • Downsizing
  • Outsourcing
  • Insourcing

 

Important: Making a workplace change will often obligate you to consult with affected employees. Failing to fulfil this obligation will increase your legal exposure.

During this series we will be looking at all the above examples of workplace changes in detail and how they effect you.

We will be giving examples, Definitions, and Important information to help you navigate what can become a very costly process if done wrong. We will also be giving you some case law to show the complex nature Workplace Change and what happens when it goes wrong.

You will receive a FREE weekly email that will each cover a different area on Workplace Change

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When Will a Restructure Lead to a Transfer of Employment

In a restructure, an employee occupying a redundant job may be redeployed to a new employer within the same corporate group

Includes a Step by Step Guide on Consultation

Consultation requires more than simply discussing the workplace change and its consequences for the employee.

Follow these steps to ensure you meet your obligation to consult:

Step 1: Give each affected employee all the relevant information in writing

Inform all affected employees of:

  • ¬¨√âthe nature of the proposed changes; and
  • ¬¨√âthe expected effects of the changes on the employees.

You don’t have to give employees confidential information if its disclosure would be contrary to your interests.

Example – A financial services business is selling its life insurance arm. The workforce is transferring to the purchaser. During confidential negotiations, the purchaser reveals its intention to reduce the workforce by one third. The modern award consultation obligation does not require the employer to disclose this fact to employees.

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