Business is an organic beast

You may have a single, specialised product, or you may run a complex business delivering services or goods across a range of industries. Either way, as your business evolves, the way your team is structured will often need to change.

And when it does, those changes usually require consultation with your employees.

Not only is this best practice, but in many cases it’s a legislative requirement that can keep you out of trouble if the process is followed correctly.

It’s not unusual for the HR Staff n’ Stuff team to receive calls from business owners who simply didn’t realise they needed to consult before making significant workplace changes. Often, the change itself makes sense from a business perspective, but skipping the consultation process can lead to unfair dismissal claims or other issues that could have been avoided.

What is Consultation and When Do You Need to Do It?

Consultation is required when a business is proposing major workplace changes that are likely to impact employees.

This can include things like:

• changes to rosters or ordinary hours of work
• restructures or redundancies
• changes to roles or responsibilities

Requirements around consultation are usually outlined in modern awards, enterprise agreements and legislation.

Before we go further, it’s important to understand what consultation isn’t.

Consultation is not simply telling your team about a decision that has already been made.

Instead, it requires that you:

• ask for employee feedback
• genuinely consider that feedback
• take it into account before making a final decision

It doesn’t mean employees or unions have the final say. Employers still retain the right to make decisions about how they run their business.

However, when people feel heard and involved in the process, they are far more likely to respond positively, even if they don’t fully agree with the outcome.

Why Consultation Matters

It’s not always about getting 100% agreement.

But it is about avoiding the situation where a major change lands without warning and leaves your team feeling blindsided.

And no matter how discreet you think you’re being, employees usually have a sense when something is shifting. When that uncertainty builds, it can lead to increased anxiety, reduced morale and a drop in productivity.

A clear and genuine consultation process helps manage that.

A Simple Path to Compliance

In most cases, consultation comes down to three key steps:

1. Inform your employees

Let your team know about the proposed change, including:

• what is changing
• why the change is happening
• how it may impact them

You are not required to share confidential or commercially sensitive information.

2. Give employees the opportunity to provide feedback

Allow time for discussion and questions.

Where possible, this should include face-to-face or virtual conversations, rather than relying solely on written communication.

Make sure everything is documented.

3. Consider feedback before making a final decision

Approach the process with an open mind.

You may have a preferred outcome, but some of the best ideas come from the people doing the work every day. Giving your team the opportunity to contribute can lead to practical, cost-effective solutions you may not have considered.

Do I Have to Consult?

For major changes that significantly impact employees, the answer is usually yes.

Consultation requirements are often set out in modern awards, enterprise agreements and legislation, so it’s important to check your obligations before making changes.

If you’re unsure, it’s always worth getting advice.

Beyond Compliance: A Better Way to Work

Even where consultation isn’t strictly required, it can still be incredibly valuable.

Using a consultative approach for things like:

• process improvements
• client service changes
• problem solving

can help create a more collaborative and engaged workplace.

The people on the front line often have insights that lead to simpler, more effective solutions. Involving them can help avoid overcomplicated approaches and improve overall outcomes.

Final Thoughts

Consultation can absolutely be a legal requirement, and getting it wrong can have consequences.

But it’s also a practical tool that can help you make better decisions and build a stronger, more engaged team.

Follow the process, keep communication open, and don’t be afraid to ask your team for input.

You might be surprised by what comes out of it.

And if you need support, the HR Staff n’ Stuff team is always here to help.

FAQs

Do employers have to consult employees in Australia?

In most cases, yes. If changes significantly impact employees, consultation is usually required under modern awards, enterprise agreements or legislation.

What happens if you don’t consult?

Failing to consult can lead to disputes, unfair dismissal claims and potential penalties.

Does consultation mean employees can refuse changes?

No. Employers can still make final decisions, but they must genuinely consider employee feedback before doing so.