Redundancy: Don’t cut corners on alternative employment

A genuine redundancy and fair selection process aren’t enough on their own to carry out a fair redundancy dismissal. Employers also have a legal duty to explore alternative roles for affected employees. The key lesson here is that taking a half-hearted approach risks making the whole process unfair.

Hendy Group v Kennedy

That’s the clear message from the recent case of Hendy Group v Kennedy.

In this case, Mr Kennedy was a training manager at a car dealership group, with over 10 years of previous experience in car sales. When his training role was at risk, he applied for several internal vacancies – mainly in sales – but was unsuccessful and then dismissed for redundancy.

The tribunal accepted that the redundancy was genuine, but found the dismissal unfair.

Failure to offer alternative employment

The Tribunal decided that the employer didn’t make a proper effort to help Mr Kennedy find another role. For example:

• He had to find and apply for vacancies like an external candidate.
• HR gave no help in identifying suitable roles.
• He was told further sales role applications would be rejected as his motive in applying for them was questioned.
• Managers weren’t told he was at risk of redundancy.
• Some emails were sent to an address he couldn’t access.
• No real attempt was made to match him to vacancies.

The tribunal found that if the employer had acted fairly, Mr Kennedy likely would have found another role. He was awarded full compensation, with no Polkey deduction.

A warning message for HR

Supporting employees at risk of redundancy isn’t just good practice – it’s a legal requirement. That means more than just pointing to a vacancy list. You need to:

• Communicate clearly and supportively.
• Help identify and explore suitable roles.
• Ensure decision-makers know who’s at risk.
• Make sure practical barriers (like email access) don’t get in the way.

In redundancy, how you handle the detail can make or break a fair dismissal.

Further reading

• Could alternative employment be better than redundancy? – Hunter Law
• Code of Practice on “fire and rehire” in force – Hunter Law
• EAT stresses the need for proper consultation in redundancy cases – Hunter Law
• Redundancy is on the rise: 9 essentials for employers – Hunter Law

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