Redundancy Dismissals Must Include Genuine Efforts to Find Alternative Roles

A recent case serves as an important reminder for employers navigating redundancy situations: a fair dismissal isn’t just about a fair selection process — it must also include a real effort to help employees find alternative work within the organisation.

In Hendy Group v Kennedy, the Employment Appeal Tribunal (EAT) ruled that Mr Kennedy, a training manager in car sales, was unfairly dismissed despite a legitimate redundancy situation and a fair selection process.

So, where did the employer go wrong?

Mr Kennedy had over a decade of experience in car sales before moving into a training role. When that role was placed at risk, the employer failed to meaningfully explore suitable alternative positions for him — a legal obligation under redundancy law.

The EAT highlighted several key failings:

• Mr Kennedy had no internal advantage when applying for vacancies — he had to go through the same process as external applicants.
• He received no guidance or support from HR in identifying suitable roles.
• When he applied for several sales roles, his applications were rejected, and he was told not to bother applying again.
• Crucial HR communications were sent to an email account he couldn’t access.
• Line managers weren’t informed that he was at risk of redundancy.
• There was no evidence of any proactive attempt by the employer to match him to available roles.

Ultimately, the EAT concluded that no reasonable employer would have handled the situation this way. Mr Kennedy was awarded full compensation, with no reduction, as the Tribunal believed he would likely have secured another position within the business had fair procedures been followed.

Key takeaway for employers

When managing redundancy, it’s not enough to follow procedure on paper. Employers must actively support employees in seeking alternative employment within the organisation. Failure to do so could turn a lawful redundancy into an unfair dismissal with costly consequences.

Please get in touch if you have any questions regarding the issues discussed in this article. 

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