Last Updated on 03/02/2026 by Damin Murdock
Employers must be mindful of its obligations under the Fair Work Act 2009 (Cth) (the “Act”) when terminating an employee by way of redundancy.
In the case of Ulan Coal Mines Ltd v Honeysett and others [2010] FWAFB, a mining company dismissed ten employees on grounds of redundancy. Four of those employees claimed it was not a genuine redundancy as Ulan Coal Mines:
- did not make the employees aware of job vacancies within the associated entities; and
- made redundant employees subject to an open selection process for vacancies, which was argued not to be redeployment.
In this case the Full Bench of Fair Work Australia held that an essential part of the concept of redeployment pursuant to s 389(2) (a) of the Act is that a redundant employee be placed into another job in the employer’s enterprise as an alternative to termination of employment. Where an employer decides that, rather than fill a vacancy with an employee into a suitable job in its own enterprise, it will advertise the vacancy and require the employee to compete with other applicants, it might subsequently be found that the resulting dismissal is not a case of genuine redundancy. Furthermore, if an employer is part of a group of associated entities which are subject to overall managerial control, then the same considerations will be relevant when considering if the employer had tried to redeploy an employee.
Tips
When making an employee redundant, consider:
- notifying an employee of other job vacancies within the business or associated entities; and
- offering an employee a position within the business an associated entity, even if the redundant employee has skills and experience beyond those required for the vacant job.
If you have any questions in relation to this article, please contact Damin Murdock at Leo Lawyers on (02) 8201 0051 or at office@leolawyers.com.au.
DISCLAIMER: This article is not to be taken as legal advice and is general in nature. If you require specific advice, please contact us.
Damin Murdock (J.D | LL.M | BACS - Finance) is a seasoned commercial lawyer with over 17 years of experience, recognised as a trusted legal advisor and courtroom advocate who has built a formidable reputation for delivering strategic legal solutions across corporate, commercial, construction, and technology law. He has held senior leadership positions, including director of a national Australian law firm, principal lawyer of MurdockCheng Legal Practice, and Chief Legal Officer of Lawpath, Australia's largest legal technology platform. Throughout his career, Damin has personally advised more than 2,000 startups and SMEs, earning over 300 five-star reviews from satisfied clients who value his clear communication, commercial pragmatism, and in-depth legal knowledge. As an established legal thought leader, he has hosted over 100 webinars and legal videos that have attracted tens of thousands of views, reinforcing his trusted authority in both legal and business communities."
