The US is often a bit ahead of Australia and US firms have observed significantly more approaches from companies, looking to sack large numbers of employees without breaking the law.

When asked about this Holman Webb Lawyers workplace relations partner Tony Gooch said he also noticed a significant increase in his workflow. "Within one week I received enquiries from six senior executives seeking advice and there is every indication there will be a 20-25% increase in employment law work," he said.

Mallesons partner Murray Kellock said the firm's workplace and employee relations group has been "extremely" busy over the past 12 months. He observed more than a 20% increase in employment work, largely from existing clients. "Particularly in the manufacturing and financial services industry we have recently seen an increase in requests for restructuring advice, involving redundancies and downsizing," he said.

Herbert Geer employment and workplace relations partner Kathy Dalton has also seen steady growth of about 10%. She said the past few months have been the most active and this trend is likely to continue.

Work is expected to increase from clients operating in financial services, manufacturing, retail, telecommunication and hospitality. Possible types of work include restructuring, unfair dismissals, senior executive termination disputes and enterprise bargaining.

"Financial services are where the immediate impact of the downturn will be seen. We are anticipating an increase in disputes over enterprise bargaining and that partly has to do with there being less money available for employers and rising unemployment," said Dalton.

However, Gooch said government-related employment work is unlikely to increase, because departments are trying to keep it in-house. Most of the work is likely to be found in the private sector.

There may also be complications arising from the Australian Federal government's move to scrap Work Choices legislation, giving employees greater rights and possibly affecting enterprise bargaining arrangements.

Nevertheless, Kellock believes this would just mean more work for firms: "There will be an increase for requests for advice on the ramifications of the new Labor industrial relations laws."