Exploring Redeployment Challenges for Employers

On August 6, 2025, the High Court of Australia made a significant ruling that affects how employers handle redeployment of workers. The court unanimously dismissed an appeal from the Full Court of the Federal Court of Australia in a case involving the dismissal of 22 employees by Helensburgh Coal Pty Ltd.

In 2020, due to reduced demand for coking coal caused by the COVID-19 pandemic, Helensburgh restructured its operations at a mine where these employees worked. This led to their dismissal, with the company arguing that it was a case of genuine redundancy. However, the Fair Work Commission (FWC) and later the High Court disagreed, stating that the workers could have been redeployed to perform work carried out by contractors at the mine.

The High Court’s decision clarified that under the Fair Work Act 2009, employers must consider redeployment opportunities for redundant employees within their enterprise or associated entities. This includes assessing if there are vacant positions or upcoming roles that could be suitable for affected workers. Additionally, employers should evaluate if changes in workforce management could facilitate redeployment without fundamentally altering the nature of their business.

While this ruling emphasizes the obligation of employers to explore redeployment options for redundant workers, it also recognizes that certain redeployment scenarios may not be feasible if they require significant changes to the core operations of the company. Ultimately, this decision sets a precedent for how businesses handle workforce restructuring and redundancy situations moving forward.