Restructuring and Redundancy

The decision to review organisational structure is always a difficult one, made even more challenging by the legislative labyrinth that accompanies it. As of 1 January 2010, changes to the Fair Work Act 2009 mean that the term “redundancy” has been re-defined and employees have had greater entitlements to redundancy payouts. The Victorian Chamber of Commerce and Industry's Workplace Relations consultants are experts in:

  • Guiding you through the restructure and redundancy process to ensure you are protected from potential disputes
  • Assisting you in determining a fair and compliant severance payment
  • Defending employee claims that a redundancy is not genuine, or was a result of discrimination
  • Collaborating with your business to develop the best structure to meet your objectives
  • Managing change process including communicating and implementing changes with your workforce


Success Story

A new member contacted the Victorian Chamber for restructuring advice. For the first time in their lives, their business was shrinking due to outside influences and it was becoming increasingly clear that they would soon struggle to make payroll.

The member ran a small business and said that they considered their employees to effectively be family, but could no longer afford to keep them all on. After extensive consultation with a Victorian Chamber Workplace Relations consultant, the employer was able to take a restructuring plan to his staff in which they would all be able to keep their jobs in return for working reduced hours. A year later, the same Victorian Chamber consultant was engaged by the employer to renegotiate a restructure in which all the employees on reduced hours were offered full time contracts with overtime conditions.

Frequently Asked Questions

  • What is the process for making employees redundant?
  • How much do I have to pay redundant employees?
  • Is severance pay applicable?
  • Do I have to pay redundancy if I can find employees other jobs?
  • What changes to the Fair Work Act 2009 affect my business?
  • What statutory and legal requirements do I need to comply with?