A leading lawyer tells HRD how to avoid common mistakes
As economic and operational uncertainty deepens across sectors, HR leaders are increasingly navigating the legal minefields of restructures, redundancies, and cultural change.
According to Melinda Bell, partner at Norton Rose Fulbright in Melbourne, the volume of legal claims tied to psychosocial hazards is rising—often because of poorly executed HR processes during times of change.
“There needs to be a real focus on how organisations respond to concerns around restructuring and redundancy,” Bell told HRD ahead of her upcoming presentation at the Employment Law Masterclass.
“Not doing enough due diligence early on is a common pitfall—and one that can have serious repercussions down the line. With restructuring becoming more complex, your planning needs to be robust.”
Ways to manage change during uncertainty
Uncertainty in the workplace can reduce employee engagement and buy-in, highlighting the importance of strong communication to help mitigate risks.
“Irrespective of their generation, your employees want to be bought on that journey with you, they need to be consulted so you can get a sense of engagement,” Bell acknowledged.
“But, from a legal perspective, it’s more than that. Consultation is a legal requirement – as well as with employees’ representatives. You need to have clear guardrails in place.”
Bell noted that a recent client experienced similar issues because of a period of rapid growth – putting into context the importance of communication.
“They wanted a cultural review in their workplace, and we found that their workforce was really unsettled. We saw they’d undergone recent acquisitions – for a business, really exciting, but for their employees, a lot of questions were left unanswered.”
Importance of structure in dealing with psychosocial complaints
Establishing a clear structure is critical when navigating organisational change—especially in mitigating psychosocial complaints.
"Having a planning structure is your starting point. It ensures you've considered all the things you need to consider as part of the process," she said.
Bell emphasised that many issues emerge from overlooked contingencies. Taking the time to map out potential challenges allows organisations to pre-empt risks.
"The restructures that succeed are those where time’s been taken at the front end, involving all the relevant business units and decision-makers," she explained.
"That way, you can implement an effective process and be ready for any issues that arise—even if you don’t tackle them immediately."
Uncertainty breeds concern
It wasn’t just internal uncertainty that causes issues within organisations – but external influences.
“When a company decides to outsource work, for example, it’s going to get a lot of press – especially when they’re a big business. It brings up questions about why redundancies are happening. If you’re looking at that, it’s a reminder that you need to look at potential risks and why you’re doing something,” Bell outlined.
“In legal claims of this nature, a prohibited reason for redundancy need only be one of the reasons and you can fall afoul. You need to get that advice upfront and ensure you’ve got things in place to manoeuvre decision making processes to put yourself in a defensive position.”
Ultimately, this comes down to ability to communicate with staff when it comes to change and being able to assess if a psychosocial claim has merit or not. This, Bell said, means businesses aren’t on the backfoot because of ambiguity.
“It’s about knowing your demographics, knowing your employees, and knowing if enterprise agreements have unfair dismissal rights,” Bell concluded.
The Employment Law Masterclass Australia is a must-attend event for HR leaders and employers navigating significant changes to workplace law in 2025. With post-election industrial relations reforms, evolving Fair Work priorities, and growing pressure on compliance, this online event delivers timely insights to help organisations manage legal risk with confidence.
Join us online on 27 August 2025 and explore key developments in restructuring, psychosocial hazards, enterprise bargaining, flexible work, and employee litigation. Gain practical strategies for conducting defensible investigations, supporting employee wellbeing, and adapting workplace policies to meet today’s legal and operational demands.
