Back in January 2025, we wrote about an upcoming High Court case that could reshape redundancy and redeployment rules in Australia. The decision has now been handed down — and the impact is significant. Below, we explain how this High Court ruling is reshaping redundancies in Australia, what it means for compliance, and how it affects both employers and employees.
Background of the Case
In 2020, Helensburgh Coal reduced its workforce at the Metropolitan Mine due to decreased demand. Approximately 90% of mining roles held by direct employees were made redundant, while labour hire contractors continued to perform similar tasks.
Twenty-two affected employees challenged their redundancies, arguing they weren’t “genuine” under the Fair Work Act 2009 (Cth), because redeployment into contractor roles had not been considered.
After the Fair Work Commission and Federal Court both sided with the employees, the case went to the High Court.
For those who want to review the full decision, you can read the High Court’s judgment (HCA 29, 6 August 2025) directly on the High Court of Australia website.
What the High Court Decided
The High Court confirmed the following key redundancy changes:
Redeployment obligations extend further than before. Employers must consider whether redundant employees could reasonably be redeployed into roles performed by contractors.
“All the circumstances” really means all. The Court said factors such as employee skills, training, experience, and the organisation’s structure, practices, and workforce composition must be considered.
Vacancy isn’t the only test. A lack of an available role doesn’t automatically make a redundancy genuine. Employers may need to look at insourcing contractor work.
Retraining doesn’t exclude redeployment. The fact that retraining is required does not make redeployment unreasonable.
Why This Is a Compliance Issue
This decision isn’t just about redundancy — it’s about compliance. Employers must now ensure that redundancy processes fully meet the broader obligations under the Fair Work Act.
Failure to consider redeployment into contractor roles, or to properly document the process, could expose businesses to unfair dismissal claims and significant compliance risks.
What This Means for Employers
This ruling raises the bar for employers considering redundancies:
You can’t rely on “no vacancies” as the sole justification.
You must document how you considered redeployment into contractor roles.
Redeployment and retraining must be genuinely assessed, not dismissed as impractical.
Redundancy is no longer just a business decision — it is a compliance risk that needs to be managed carefully.
What This Means for Employees
For employees facing redundancy, the ruling strengthens the grounds to challenge whether their dismissal was genuine. If contractor roles exist, and redeployment wasn’t offered or properly considered, they may have a stronger case before the Fair Work Commission.
Strategic HR Australia’s Guidance
Redundancies are never easy — but this ruling makes it clearer that careful planning, compliance, and documentation are critical.
At Strategic HR Australia, we can help you:
Review and refine redundancy and redeployment policies.
Conduct risk assessments before implementing redundancies.
Develop fair and compliant processes that minimise risk.
Support consultations and transitions with employees.
When it comes to redundancies, the rules have changed. Compliance is now front and centre — make sure your business is prepared, compliant, and confident in the decisions you make.
Contact us today or book your free consultation to see how we can assist with managing these redundancy changes fairly and compliantly.
