Global restructuring presents both challenges and opportunities for Australian employers

For Australian employers, these restructures present both opportunities and challenges and organisations must carefully address key employment issues to ensure a smooth transition while safeguarding the interests of employees.

Australia has a robust legal framework that governs employment relations, with strict protections for workers under the Fair Work Act. Employers involved in a global restructure must be mindful of rules surrounding consultation, notice periods, and severance pay. Consultation with employee representatives, particularly in unionised sectors, may be mandatory before making any major employment changes.

Failure to comply can result in legal disputes and reputational damage. Businesses restructuring their Australian workforce must ensure they meet these obligations when implementing layoffs or role changes.

Redundancies and workforce transition

Restructuring often leads to layoffs or redeployment of employees across different locations. Under Australian law, to protect against a claim of unfair dismissal, the redundancy must be genuine, meaning the role is no longer required within the business. Employers must ensure affected employees receive appropriate severance pay and potentially also consider allowing access to support programs such as outplacement services.

Additionally, the psychological well-being of staff should be considered. Sudden restructures may lead to increased stress, uncertainty, and disengagement among employees. Clear communication and career transition support can help minimise negative impacts and maintain morale.

Work rights and visas for foreign employees

For multinational corporations operating in Australia, a global restructure may involve changes to visa sponsorship for international employees. The Temporary Skill Shortage visa, employer-sponsored migration programs, and permanent residency pathways must be reviewed to avoid compliance issues.

Changes to employment arrangements — such as relocating roles offshore — may trigger visa complications for skilled workers. Businesses should work closely with immigration specialists to ensure international employees remain legally authorised to work under evolving business structures.

Legislative changes should also be monitored to ensure that visa sponsorships remain compliant with legal requirements before and after a global restructure.

The shift to remote and hybrid work models 

A global restructure may push Australian companies toward remote or hybrid work environments, especially as international markets adopt similar models. Australian employment laws protect remote workers’ rights in the same way as in-office employees, including pay entitlements and safety obligations while working from home.

Employers must also address jurisdictional complexities. If employees transition to remote work outside Australia, then the payroll, tax obligation and employment laws of foreign jurisdictions may apply, affecting compliance.

Cultural and workforce integration

A global restructure often leads to new reporting lines and management structures. For Australian workplaces, maintaining an inclusive and engaged workforce during change is crucial. Considerations include aligning leadership approaches with local workplace expectations and fostering cross-cultural collaboration.

Australian businesses are known for strong employee rights, work-life balance and fair wages. A misalignment with global corporate strategies, such as implementing stricter productivity expectations, can lead to resistance among staff. Open dialogue and transparency help bridge gaps between organisational changes and employee expectations.

Australian employers undergoing a global restructure must navigate a complex web of legal, operational and cultural challenges. By focusing on compliance, workforce transition, visa regulations, workplace flexibility and employee wellbeing, organisations can mitigate risks and ensure a successful restructuring process that supports both business objectives and employee interests.