Employers must do more than simply inform employees at risk of redundancy about internal vacancies; they are required to actively assist and support those employees in seeking suitable alternative roles within the organisation. This includes identifying potential vacancies, providing guidance on the application process, and ensuring that employees are not disadvantaged in accessing information or applying for roles. The Employment Appeal Tribunal (EAT) in Hendy Group Ltd v Kennedy confirmed that a passive approach—such as merely signposting vacancies—will not satisfy the duty to act reasonably under section 98(4) of the Employment Rights Act 1996, and failure to take reasonable steps is likely to render a redundancy dismissal unfair.
Practical steps for employers
Assign a dedicated HR contact to support at-risk employees in identifying and applying for suitable internal roles, including reviewing CVs and preparing for interviews. This demonstrates genuine engagement and can help defend against claims of unfair dismissal.
Ensure continued access to internal systems, such as the intranet and email, throughout the redundancy consultation and notice period. Removing access can hinder employees’ ability to find and apply for vacancies and may be viewed negatively by a tribunal.
Communicate clearly with both the employee and relevant managers: hiring managers should be made aware of employees at risk of redundancy so they can consider them for vacancies, and all correspondence with the employee should reference available support and assistance.
Consider the full range of the employee’s skills and experience, not just those relevant to their current role, when assessing suitability for alternative positions. Where necessary, explore options such as retraining or roles that may be a step down, provided the employee is willing.
Document all efforts made to identify and offer suitable alternative employment, including records of discussions, job suggestions, and reasons for any rejections. This documentation will be critical if the process is challenged.
Risks of non-compliance
If an employer fails to take proactive and reasonable steps to help an at-risk employee secure alternative employment, the dismissal is likely to be found unfair, even where the redundancy situation and selection are otherwise genuine. In Hendy Group Ltd v Kennedy, the EAT upheld a finding of unfair dismissal where the employer did not provide support, withdrew access to internal systems, and failed to inform hiring managers about the at-risk status of the employee. Compensation was not reduced under the “Polkey” principle because the tribunal found that, had proper steps been taken, the employee would probably have secured another role.
Ongoing duty during notice period
The duty to seek and offer suitable alternative employment continues throughout the employee’s notice period. Employers must monitor for new vacancies and continue to support the employee’s redeployment efforts until the end of employment. Failure to do so can further undermine the fairness of the process.
Policy and process recommendations
Employers should review and, if necessary, update their redundancy and redeployment policies to ensure that at-risk employees are prioritised for suitable vacancies and that all managers understand their responsibilities in supporting redeployment. Consideration should be given to whether internal candidates at risk should be prioritised over external applicants for roles within their skillset, even if not a perfect match.
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