TfNSW Job Cuts: Streamlining or Sidestepping Fair Work?
Transport for NSW (TFNSW) has recently announced plans to cut more than 1,200 roles.
These include around 950 corporate, administrative, and award-covered roles, plus 300 senior executive positions. The NSW Government has framed the restructure as a cost-saving measure to support frontline services. However, this large-scale change raises critical questions under Australia’s employment law framework.
On Wednesday, 23 Jul 2025, the Australian Broadcast Corporation (ABC) website report included the following:
Mr Murray said there would be a reduction of “about 950 TSSM (transport senior service managers) and award positions.” Transport secretary Josh Murray announced.
That is in addition to about 300 senior executive roles that have already been announced, he said.
Redundancy, Consultation & Legal Risk Under the Fair Work Act
Presented to the public as a cost-saving initiative intended to bolster frontline services, the move signals a shift in government strategy following rapid post-pandemic growth. However, beyond its fiscal rationale, the decision carries substantial legal and industrial implications.
Under Australia’s complex framework of employment laws, including the Fair Work Act 2009 (Cth) and NSW public sector employment regulations, such large-scale redundancies must meet stringent standards of procedural fairness, genuine consultation, and redeployment consideration.
Beyond fiscal savings, do the legal risks and obligations stemming from the TfNSW restructure, including its compliance with federal and state employment law, provide grounds for employee challenge?
Fair Work Requirements & Employment Awards and Protections: Redundancy, Consultation & Redeployment
The reduction of approximately 950 corporate and administrative roles, in addition to around 300 senior executive positions, as part of a government-led effort to streamline operations and redirect funding to frontline services. While framed as a financial sustainability measure, these changes raise key issues under the Fair Work Act 2009 (Cth) and broader NSW public sector employment law.
Under Section 389 of the Fair Work Act 2009 (Cth), a redundancy is considered “genuine” if:
- The employer no longer requires the job to be performed by anyone due to operational changes;
- The employer complies with any consultation obligations in a modern award or enterprise agreement;
- It is not reasonable to redeploy the employee elsewhere within the business or associated entities.
Furthermore, TfNSW employees are covered under Transport for NSW and Sydney Metro Salaries and Conditions of Employment Award 2022, including provisions that mandate genuine consultation in the event of organisational change.
Which requires:
- Specific consultation timelines before implementation;
- Access to a dispute resolution process;
- Recognition of employees’ right to representation.
NSW Government Obligations: Public Sector Redeployment Framework in NSW
Additional rules apply under NSW public sector legislation. The NSW Government Sector Employment Act 2013 (NSW) and associated Government Sector Employment (General) Rules 2014 impose further obligations, including:
- Prioritising internal mobility before termination;
- Offering suitable roles within the NSW public service; and
- Providing reasonable notice and severance.
These rules ensure that employees are not terminated unless all other reasonable options have been exhausted.
A Cost-saving Measure with Legal and Industrial Ramifications
Transport Secretary Josh Murray described the restructure as essential for long-term operational sustainability.
“We can’t get away from the fact that in the years immediately following the pandemic, the agency grew by 3,000 people … to sustain that growth in the long term, it can’t be done,” he told reporters.
The agency aims to save A$600 million this financial year by reducing duplication and centralising support services such as communications, procurement, technology, and project management. Mr Murray has assured that frontline services will remain unaffected, and that impacted employees will be consulted on options including redeployment or early exit packages.
Case Law Example: Ulan Coal Mines v Honeysett
In the case of Ulan Coal Mines Ltd v Honeysett, the Fair Work Commission confirmed that failing to explore reasonable redeployment opportunities undermines the genuineness of a redundancy. If TfNSW does not demonstrate it genuinely explored redeployment options and has properly considered such alternatives, legal challenges may follow.
Lawful, But Is It Fair?
While the restructuring may comply procedurally with the Fair Work Act and NSW legislation, its fairness and transparency will be key to its legal defensibility. The protections enshrined in legislation exist not only to guard against unjust termination, but also to preserve employee dignity and procedural fairness in times of economic or political restructuring.
As this process unfolds, employee rights groups, unions, and legal observers will closely monitor whether TfNSW truly meets both the letter and spirit of employment law obligations.
Need Help Understanding Your Rights?
If you are an employee of TfNSW or another government agency affected by recent restructures, or if you believe your redundancy may not have followed proper process, now is the time to seek professional advice.
Our team has extensive experience with:
- Redundancy
- Unfair Dismissal Claims
- Award And Enterprise Agreement Disputes
- Public Sector Redeployment Rights & Processes
- Employee Entitlements & Separation ‘Exit’ Packages
- Public & Private Sector Employees
About Madison Marcus: Employment Law Division
Madison Marcus is a leading Australian law firm recognised for delivering strategic, results-driven legal solutions across both the private and public sectors. Our Employment Law Division is renowned for providing clear, pragmatic, and commercially sound advice on all aspects of workplace relations and employment law.
We represent employees, executives, and employers in complex and high-stakes matters, combining deep legal expertise with a practical understanding of workplace dynamics. Our team resolves disputes quickly through negotiation, mediation, or litigation. We protect rights, reduce risk, and aim for the best outcome while preserving workplace relationships. Let’s resolve your workplace dispute quickly, efficiently, and on your terms- today.
References, Related Legal and Industrial Relations Documents:
- Nearly 1000 jobs to be axed at TfNSW in major shake-up
- Major government cuts loom as Transport for NSW to cut almost 1,000 jobs – ABC News
- FAIR WORK ACT 2009 – SECT 389 Meaning of genuine redundancy
- Transport for New South Wales and Sydney Metro salaries and condition or employment Award 2022
- [2010] FWAFB 7578
- Government Sector Employment Act 2013 No 40 – NSW Legislation
- Government Sector Employment (General) Rules 2014 – NSW Legislation
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