Redundancy is one of the hardest things an organisation can do. For employees, it’s not just the loss of a job — it’s the loss of security, routine, and sometimes identity. For leaders, it’s one of the toughest conversations they’ll ever have.
Now, a recent High Court decision in the Helensburgh Coal case has made these moments even more complex. The Court ruled that when considering redundancies, employers may need to look far beyond current vacancies and ask: could we reasonably reorganise work — even replacing contractors or labour-hire roles — to keep employees in jobs.
This shift raises the bar for how businesses approach redundancy. It’s no longer enough to tick the legal boxes. HR leaders must balance compliance with compassion, ensuring processes are not only fair but also psychosocially safe for everyone involved.
That’s where best practice matters — and where Career Money Life’s Notification Intelligence™ helps.
What happened in the Helensburgh case
In 2020, Helensburgh Coal restructured its mine operations due to COVID-19 impacts. Twenty-two employees were made redundant. The company argued this was a genuine redundancy, meaning employees couldn’t claim unfair dismissal. But the Fair Work Commission disagreed, saying the employer hadn’t gone far enough in considering redeployment options.
The case reached the High Court, where the central question became: Is redeployment just about checking if vacancies exist, or do employers also need to consider whether roles could be created — for example, by replacing contractors with employees?
The Court’s answer: yes, in some circumstances. Employers may need to look at whether it would have been reasonable to change how the workforce was organised, even if that meant replacing contractors with permanent employees.
This doesn’t mean every contractor arrangement must be overturned. But it does mean organisations must think more broadly, document their reasoning, and be ready to show they explored all reasonable options before finalising redundancies.
What this means for HR and leaders
This ruling raises the bar on redundancy planning. It’s no longer enough to simply say, “there were no suitable roles available.” HR leaders now need to ask:
- Could a contractor or labour hire role reasonably be offered to an employee at risk?
- Is there another way to reorganise work that would avoid or reduce redundancies?
- Have we documented the decision-making process so it’s transparent and fair?
At Career Money Life, we also know there’s another side to this: the human impact.
Redundancies aren’t just legal processes — they’re life-changing moments for employees, and often some of the hardest conversations leaders will ever have. People remember how they were treated long after the restructure is over.
Best practice beyond compliance
To manage redundancies well today, employers need to combine legal compliance with care and compassion. That means:
- Workforce-wide planning – review employees, contractors, and labour hire staff together when considering redeployment.
- Meaningful consultation – talk with employees about alternatives, not just outcomes.
- Clear documentation – record the reasoning behind decisions, especially where contractor roles are retained.
- Safe notifications – prepare leaders to have difficult conversations in ways that protect employees’ wellbeing.
- Career support from day one – offer transition programs that give employees clarity and confidence about their future.
Notification Intelligence™: Our framework for safe, supportive redundancies
That’s where Career Money Life comes in. We’ve developed Notification Intelligence™, a framework that helps HR and leaders manage redundancies in a way that is:
- Legally sound – aligned with the latest expectations on redeployment and fairness.
- Psychosocially safe – ensuring conversations are handled with empathy and structure.
- Future-focused – connecting employees immediately to career transition support through CareerHub (Future Fit + Marketplace Credit) and the Career Canvas Assessment.
- Transparent for HR – with our HR Hub providing secure onboarding and real-time reporting on engagement, program uptake, feedback, and outcomes.
Your Practical Checklist
- Workforce mix analysis completed (employees + labour-hire + contractors) with like-for-like roles flagged. Source: Clayton Utz
- Reasonableness memo documenting what changes were considered to create roles (and why they were/weren’t viable). Source: Ashurst
- Consultation records: Meetings, options discussed, employee input, and outcomes.
- Source: Fair Work Commission
- Psychosocially safe notification plan: Trained leaders, scripts, support pathways, escalation.
- Redeployment offering: Interview fast-tracks, bridging training, trial placements, and priority consideration settings. Source: Gilbert + Tobin
- Transition support: Coaching, assessment, job-search services and wellbeing care; usage tracked and reported. Source: Fair Work Ombudsman
Why it matters
Handled well, redundancies can:
- Reduce legal and reputational risks.
- Protect and even enhance your employer brand.
- Give impacted employees confidence and support as they move forward.
- Strengthen trust with your remaining workforce.
Handled poorly, they can cause long-term damage to morale, retention, and reputation.
If you’d like to know more about how Notification Intelligence and CareerHub can help you manage redundancies with both compliance and compassion, we’d love to talk.
📞 1300 344 996 | ✉️ contact@careermoneylife.com | 🌐 http://www.careermoneylife.com
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