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​In August 2025, the High Court of Australia handed down a landmark decision that reshapes how employers must approach redundancy. The ruling in Helensburgh Coal Pty Ltd v Bartley has broadened the scope of what constitutes “reasonable redeployment” under the Fair Work Act 2009 (Cth)and its implications will be felt across every industry.

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So, what does this mean for your business, your workforce strategy, and your engagement with contractors?

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What Changed?

Traditionally, redeployment obligations were interpreted narrowly focused on whether there was a vacant role an employee could be moved into. The High Court has now clarified that:

• No vacancy is required: Employers may need to consider redeployment even if it means adjusting existing workforce structures.

• Contractor roles are in scope: Roles currently filled by contractors may be considered potential redeployment opportunities for employees facing redundancy.

• Broader considerations apply: Factors such as employee skills, training, business needs, upcoming retirements, parental leave, and workforce models must all be assessed.

In short, the Fair Work Commission (FWC) can now ask: Could the business have restructured, insourced, or reallocated work to reasonably redeploy an employee?​

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What This Means for Employers

This decision significantly raises the bar for employers planning restructures or redundancies:

• Stronger employee protections: Redundancies may be challenged as “not genuine” if redeployment into contractor or other roles was not considered.

• Greater documentation required: Employers must be able to demonstrate that all redeployment options including restructuring were explored and fairly assessed.

• Strategic workforce planning: Contractor utilisation, succession planning, and role design will all come under closer scrutiny.

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Impact on Different Workforce Groups

Permanent Employees

• Stronger rights to contest redundancies.

• Increased chances of being redeployed into contractor held or adjusted roles.

Contractors

• Roles may now be considered redeployment opportunities for permanent staff.

• Greater justification required for continued contractor use.

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Key Takeaway

Redundancy in Australia has been redefined. The focus has shifted from vacancy driven redeployment to a much broader obligation that considers the entire workforce structure, including contractor arrangements. Employers must adapt quickly or risk facing costly legal challenges.