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Workplace change
Last updated October 2023
This chapter examines the legal risks that arise when you implement major workplace changes, such as restructuring and downsizing.
What workplace changes expose you to legal risk?
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. Such workplace changes include:
- restructuring;
- downsizing;
- cost-cutting;
- outsourcing; and
- insourcing.
Important: Making a workplace change will often oblige you to consult with affected employees. Failing to fulfil this obligation will increase your legal exposure.
Restructuring
Definition: Restructuring
Restructuring is the process by which a business changes its internal structure. A restructure may result in:
- changes in reporting hierarchy;
- changes to employees’ duties and responsibilities;
- newly created jobs; and
- redundancies.
Restructuring is the process by which a business changes its internal structure. A restructure may result in:
- changes in reporting hierarchy;
- changes to employees’ duties and responsibilities;
- newly created jobs; and
- redundancies.