TL;DR: Cutting your first hire because their role vanished? Dangerous. Aussie indie studios keep getting sued for skipping one step: proving that dev couldn't move to any role in your org, even unpaid gigs. Here's how I almost torched my startup over a "genuine" redundancy. Spoiler: checking Slack channels for open tasks nukes your defense.
The Indie Dev's "Oh Sh*t" Moment
Last year, React Native slowed for our indie game. I cut our solo mobile dev. The role disappeared. Seemed clean.
Two weeks later, legal docs arrived.
Why? Turns out she could handle community support. I hadn't checked if that work existed. She sued under genuine redundancy rules. My "safe" layoff wasn't safe at all.
That time I axed our mobile dev after React Native slowed... but forgot community support existed. She could do it. They sued.
A 7-person game studio got nailed because their "redundant" QA lead was perfect for Discord moderation. Nobody posted that role. The Commission ruled it was reasonable redeployment.
Redeployment Roulette: Why "Role Gone" Isn't Enough
Operational changes don't magically make redundancies safe. The Fair Work Commission checks three things under Section 389. Mess up one? Employee wins.
First: Role elimination. Business shift, tech change, lost client, fine. But the role must actually vanish.
Second: Real consultation. Not "Hey we're cutting roles, sign here." Modern awards require actual dialogue before decisions lock.
Third: Redeployment check. This kills most indie studios.
Redeployment isn't about identical work. Could that backend dev handle Discord moderation? Could your ex-QA lead triage community bugs? If yes, and it's reasonable, redundancy fails.
Checking Slack for open tasks? Disaster. The Commission sees that as proof you had work. Vacancies don't need formal postings. "Oh I could've done that" is enough for lawsuits.
Your 3-Step Redundancy Triage for Tiny Teams
No lawyers needed. Do this before anyone gets cut:
-
Vacancy audit
Map every task across your org. Not just "open roles." Look at:- Community support tickets
- Unfinished feature branches
- Bug backlog triage
- Discord/Slack moderation Document why each task couldn't fit the departing dev. Example: "Mobile dev lacks design skills for UI backlog."
-
Consultation script
Don't hand redundancy letters first. Try:"We're restructuring due to [X]. Your role may go away. Can you suggest other work you'd handle? We'll review options by [date]."
Record responses. Silence is evidence they didn't propose alternatives. -
Paper trail hacks
- Save Slack channel archives before cuts
- Note dates when tasks were last assigned
- Email: "Confirming no open roles as of [date]" One studio saved itself with a dated GitHub issue backlog showing no mobile work.
When "Redundancy Pay" Isn't What You Owe
Small studios (<15 employees) skip statutory redundancy pay under the Fair Work Act. But watch for:
- Tax tricks: Genuine redundancy pay is tax-exempt up to thresholds in the Income Tax Assessment Act 1997. For 2025, 26: $12,524 + $6,264 per service year. Tell devs this upfront. They'll panic less about paychecks.
- State traps: In Western Australia, sole traders fall under the Industrial Relations Act 1979 and Minimum Conditions of Employment Act 1993. Redundancy rules differ. Check your state.
- Contract overrides: Even small studios owe pay if contracts or awards specify it. Always check before cutting.
Post-Mortem Doc Checklist: Build Your "I Didn't Screw Up" Folder
If sued (or worse, audited), these docs save you:
- Business case email: "Why we cut Role X on [date]"
- Consultation log: Who spoke, when, what alternatives came up
- Vacancy scan: Screenshots of empty role boards and task backlogs
- Redeployment analysis: "Why Dev Y couldn't handle Task Z"
- Signed offer refusals: If redeployment was proposed and declined
Template separation docs at forms-legal.com/australia/ help. But tweak them for microstudio reality, no "HR department" exists here.
Why This Matters for Indies
Big corps have lawyers for this. Indies don't. One lawsuit can kill a bootstrapped studio.
That mobile dev case wasn't fluke. Small teams assume "no roles = safe." But redeployment includes any task the dev could reasonably do. Even unpaid. Even temporary.
The Fair Work Act 2009 sets the baseline. State laws like the Industrial Relations Act 1979 (WA) or Minimum Conditions of Employment Act 1993 add layers. Miss one, and the Commission hits you with unfair dismissal claims.
The Bottom Line
Genuine redundancy requires proving:
- Role vanished (Section 389)
- Real consultation happened
- Zero redeployment options existed anywhere
For indies, that third point is the killer. Document every task. Consult before deciding. Audit Slack channels before cuts.
Your studio's survival might hinge on whether that ex-backend dev could've triaged community bugs. Don't learn this the hard way.
Check your state's rules at forms-legal.com/australia/ before your next layoff. One template could save your startup.
indiedev #startup #australia #legal #hrtech #gamedev #founders #techlaw #employmentlaw
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