The recently published Employment Appeal Tribunal case of Hendy Group Ltd v Mr D Kennedy has highlighted to employers the importance of ensuring that all elements of a redundancy procedure are fair and that employees are given a genuine chance of avoiding redundancy.
The employer’s downfall in this case was their failure to assist Mr Kennedy in trying to find a suitable alternative role once he had been selected for redundancy.
Case Background: Redundancy at Hendy Group
Mr Kennedy had been employed by Hendy Group since 2013 and, from 2015, worked as a trainer at the group’s training academy. In 2020, a redundancy situation arose.
The parties agreed that the redundancy situation was genuine and that the selection of Mr Kennedy for redundancy was fair. However, Mr Kennedy argued that Hendy Group had failed to consider suitable alternative employment for him and that he had been unfairly dismissed.
Tribunal Findings: Failure to Consider Alternative Employment
It was found by the Employment Tribunal that Mr Kennedy’s dismissal was unfair, as his employer had not given appropriate or fair consideration to the possibility of him continuing work for them in a different role.
This point, along with two others, was appealed by Hendy Group.
Appeal Tribunal Ruling: Employer’s Duty to Help Find Alternative Roles
The Employment Appeal Tribunal stated that the duty was on the employer to consider whether Mr Kennedy could be offered alternative employment, taking into account the size and administrative resources of the company.
While Mr Kennedy was employed as a trainer, he also had extensive experience working in and managing car dealerships. Despite this, while working his notice, Mr Kennedy applied for several internal roles (none of which were successful) and was provided with no assistance from the company.
Lack of Support from Human Resources
It was noted in the judgment that:
“There is a force in Mr Kennedy’s submission that far from helping him, he was blocked every time he tried to get a different role.”
The judgment went on to say:
“It is apparent that the Human Resources Department took no step whatever to assist Mr Kennedy. I do not consider that telling him he could apply for posts open and advertised to the world, and on the same basis as every other applicant, to be help.”
Employer Actively Blocked Applications
After at least five job applications (sourced solely by Mr Kennedy) the Respondent wrote to him stating that several of his applications would not be progressed and that any further applications for sales-related roles would also not be considered. The Tribunal found that the Respondent was actively blocking Mr Kennedy from obtaining another role within the business. The Judge took a dim view of this behaviour.
Ultimately, all points of the appeal were dismissed by the Appeal Tribunal.
Key Takeaways for Employers: Redundancy Must Be Handled Fairly
This case serves as an important reminder for businesses – especially those with larger administrative resources – that considering alternative employment during a redundancy procedure is a crucial step.
Each case will be determined on its own facts. However, it’s clear from this decision that simply signposting an employee to existing job vacancies is not enough. Employers must demonstrate active input from managers and HR, showing that reasonable steps were taken to support the employee in finding a new role.
Legal Risk: When Redundancy Becomes Unfair Dismissal
To avoid potential unfair dismissal claims, employers must take active steps to help employees find alternative roles, such as:
- Arranging internal interviews
- Providing details of relevant vacancies
- Informing departments across the business about an employee at risk of redundancy
Pointing to publicly available job listings alone may not be enough to meet the legal standard of a fair process.
Need Advice on Redundancy or Unfair Dismissal?
If you have any questions regarding a redundancy procedure, either as an employee or an employer, please feel free to get in touch with us for a free consultation.
Our employment team has wealth of experience in redundancy and unfair dismissal cases and will offer expert advice and support at every step of the way.
Call us on 0113 322 9222 or email enquiries@consilialegal.co.uk.