National Australia Bank (NAB) has agreed to defer compulsory redundancies until January 2027 following employee and union criticism over plans to cut jobs before Christmas.
The move comes as the bank faces pressure from the Finance Sector Union (FSU) to reconsider its restructuring plans, which are expected to eliminate 2,500 roles by September 2027.
Andrew Irvine, chief executive, NAB informed employees that the exit date for staff facing involuntary redundancies who are going through redeployment will be moved to 27 January 2027.
The consultation period has also been extended by a week, from 4 November to 11 November 2026.
The changes follow concerns raised by employees about the timing of the job cuts and the limited time available to consider redeployment options.
Key changes for affected NAB employees:
Forced redundancies: No employee will be made involuntarily redundant before Christmas, with affected exits deferred until 27 January 2027.
Consultation period: The process and Expression of Interest (EOI) window will remain open until 11 November.
Additional information: NAB will provide a detailed analysis of the proposed changes, including their impact on workloads and staffing levels, by 6 November.
Gardening leave: Employees facing involuntary redundancy will receive gardening leave from 16 December 2026 to 27 January 2027.
Redundancy payments: The January 2027 salary increase will be factored into final redundancy payments for employees leaving in late January.
Voluntary exits: Employees who have been granted voluntary redundancy can still leave on 2 December, according to the FSU.
Union pressure prompts changes to restructuring plan
The decision followed sustained pressure from the FSU, which said it had raised employees' concerns directly with Irvine and held further discussions with the bank's management.
The union had called for two key changes: no forced redundancies before Christmas and an extension of the consultation period.
In an internal email to employees, Irvine acknowledged concerns about the timing of the proposed exits and the need for more time to consider redeployment options.
"You have raised concerns about the proximity to Christmas, expressing a desire for more time to consider deployment options," the CEO said in the email shared with HRD Australia.
He added that the extended consultation period would allow the bank to assess feedback and prepare teams for the transition.
"This extra consultation time also allows us to further consider practical implementation requirements to make sure our teams are ready for the transition," Irvine said.
The FSU welcomed the changes but stressed that the decision did not mean the bank had abandoned its plans to reduce its workforce.
"NAB still intends to cut 2,500 positions, and we remain deeply concerned about the impact on workers, their families and those left behind to manage growing workloads," said FSU national president Wendy Streets in a statement.
Scrutiny over job cuts despite strong profits
The restructuring has drawn criticism from the union, particularly as NAB reported an annual profit of AU$6.14 billion.
"A bank making billions in profit can afford to invest in its people rather than discard them. We will continue fighting for every job and holding Andrew Irvine accountable," Streets said.
NAB has defended the restructuring, saying it is intended to reduce duplication, accelerate decision-making and strengthen its risk management capabilities.
Delivering the bank's 2026 financial results, Irvine said underlying profit, excluding a large notable item announced at the half-year, increased 6.9%, while revenue grew 5.8%. Costs rose 4.5%.
"These are difficult decisions that impact our colleagues – and we are treating them with care, with dignity and with respect," Irvine said.
"This will better position NAB to respond to customer expectations, to rising competition and to rapid technological change, as well as to navigate a softening economy."
While the revised timeline gives affected employees more time to explore redeployment and prepare for potential exits, the union said its efforts to protect jobs and address the impact of the wider restructuring would continue.