Redundancy dismissal was unfair where no meaningful consideration of alternative roles
In a recent decision, the EAT has confirmed that employers must do more than invite redundant employees to apply for advertised vacancies.
Factual background
In the case of Hendy Group Ltd v Kennedy, Mr Kennedy was employed by Hendy Group as a trainer, having previously worked for many years in car sales and management. In 2020, the business identified a redundancy situation affecting the training team. Mr Kennedy accepted that the redundancy was genuine and that he had been fairly selected. However, he claimed that the dismissal was unfair because the employer had failed to take reasonable steps to explore alternative employment within the organisation.
Although he was told he could apply for roles advertised on the company’s intranet, he received no support in doing so and lost access to the internal system shortly after being given notice. He applied for several sales roles independently, but was unsuccessful. Some managers were unaware that he was at risk of redundancy, and there was evidence that earlier feedback from one unsuccessful interview was inappropriately relied on to reject subsequent applications.
EAT decision
The Tribunal found that Hendy Group had not made any real effort to support Mr Kennedy in finding alternative employment, despite being a large employer with multiple internal vacancies. It concluded that the dismissal was unfair on this basis. The employer appealed, arguing that the Tribunal had applied the wrong legal test, substituted its own view for that of the employer, and failed to reduce compensation appropriately.
The EAT refused the appeal and upheld the original Tribunal decision. On the basis of the findings of fact, the Tribunal had been entitled to find that Hendy's approach was one that no reasonable employer would have adopted.
The EAT also found the Tribunal was right not to reduce Mr Kennedy's compensation. Had Mr Kennedy not been unfairly blocked from obtaining alternative employment he would have secured alternative work.
Learning points for employers
This case highlights the importance of actively supporting employees at risk of redundancy to identify and pursue suitable alternative roles. Simply inviting employees to apply for advertised vacancies is unlikely to be sufficient, particularly if no practical assistance is provided or the employer places barriers in the way of successful applications. HR and line managers should work together to facilitate redeployment, communicate effectively, and avoid decisions that suggest internal applicants are being pre-judged or blocked. Failure to take these steps may render an otherwise genuine redundancy dismissal unfair.