Key Figures

1. A common question

"We can't offer six months' severance like Canva. Does that mean we're not managing this hazard properly?"

No. Severance size isn't what the law actually asks you to weigh. How much a business needs to spend to control a psychosocial risk is tested against five factors, and cost is only one of them, weighed against the likelihood and severity of the harm, not against what a larger company chose to spend. Most of the controls that manage job insecurity, change management and organisational justice during a restructure cost little or nothing to put in place.

On 4 November 2026, Canva told 1,271 staff (22% of its workforce) that their roles were changing or ending, as part of consolidating three divisions into one Sydney based team. CEO Melanie Perkins called it "the hardest decision we've made in Canva's history," tied to the company's growth slowing for the first time in 13 years.

The exit package drew genuine, warranted praise: a minimum six months' salary, up to 12 months of continued healthcare, a year of career coaching, kept laptops, and waived vesting cliffs for recent joiners. The AFR's Mark Di Stefano called it "exceedingly generous."

Worth adding to that strong foundation: a severance package covers people once their role ends. The parts of a restructure that create psychosocial risk mostly happen earlier, while people are waiting to find out where they stand, which is exactly the gap most small and mid sized employers can close without matching Canva's budget.

Source: Fortune, 6 Nov 2026. Full analysis: skodel.com/blog/canva-restructure-psychosocial-risk

3. Reasonable Practicability: Why Cost Isn't the Whole Test

Under section 18 of the WHS Act, what a business must reasonably do to control a risk is weighed against five factors. Cost is the last one, and it's assessed against the risk, not against another company's budget.

In practice, that fifth factor only lets cost outweigh a control when the cost is grossly disproportionate to the risk. A six month severance program might fail that test for a small employer. A clear communication timeline, a consultation step, or a published decision criteria almost never will, because they cost little to begin with.

Starting points, not a checklist. These cost little or nothing and address the hazard directly.

• Give every affected person a firm, specific date they'll know their own status, not just a company wide number.
• Consult affected staff and their health and safety representatives before the decision is locked in, not only after it's announced.
• Publish the criteria used to decide who is affected, in plain language.
• Offer redeployment, retraining, or references, even where cash severance is limited.
• Name a single contact for questions, so people aren't left guessing at answers.