A big court case is brewing, and it could shake up the rules around redundancies and redeployment. Whether you’re a business owner, manager, or employee, here’s the scoop on what might change in 2025.
What’s the Case About?
It all started with Helensburgh Coal Pty Ltd, a mining company that made waves during the COVID pandemic by cutting its direct workforce by 90%. While their employee numbers nosedived, their external contracting staff only took a 40% hit. Some employees weren’t happy and decided to challenge their redundancies, questioning whether they were truly “genuine” under Australia’s Fair Work Act.
Their argument? If the company kept contractors but didn’t explore options to redeploy existing employees into those roles or tasks, then the redundancies really can’t be called genuine. The Federal Court thought this was worth looking into and ultimately sided with the employees. Now, the High Court has granted Helensburgh Coal the right to appeal – and this could rewrite the rules for all workplaces.
Why Should You Care?
This case matters because it tackles a question that’s been a bit murky: how far do employers need to go to find redeployment opportunities for employees facing redundancy?
The Federal Court’s decision was clear: depending on the circumstances, employers might have to offer roles or tasks currently performed by contractors to their own employees instead.
- For business owners and managers, this could mean big changes to how you approach restructures.
- Employees, on the other hand, might find they have stronger grounds to question a redundancy if redeployment options weren’t fully explored.
What Happens Next?
While the Federal Court’s ruling has already set a significant precedent, the High Court’s decision in 2025 could completely shake things up again. If the High Court overturns the Federal Court’s ruling, it might ease the pressure on employers to consider redeploying employees into contractor-performed roles. If the Federal Court’s decision stands, employers will need to be even more meticulous when planning redundancies.
What Does This Mean for You Right Now?
- For Business Owners and Managers: It’s time to review your redundancy and redeployment policies.
- Are you doing enough to explore redeployment options?
- Have you considered whether contractor roles could be offered to employees instead?
- Now’s the time to tighten up your processes before any new legal requirements come into play.
- For Employees: This case could be a game-changer. If you’re facing redundancy, it’s worth understanding your rights and exploring whether your employer has genuinely considered redeployment options for you.
This case isn’t just legal jargon – it’s a real-world issue that could change how workplaces operate. Whether you’re the one making the tough calls or the one impacted by them, staying informed is your best defence.
When it comes to redundancy rules, the only thing constant is change! With the High Court set to weigh in, 2025 could bring some big news for businesses and workers alike. So, keep an eye on this space!
