Update on the Employment Appeal Tribunal Decision: A crucial reminder on the importance of proper consideration of alternative employment

The Employment Appeal Tribunal (EAT) has recently delivered its Judgment in the case of Hendy Group Ltd v D Kennedy [2024] EAT 106, providing significant clarification on the obligations of employers during redundancy processes, particularly concerning the consideration of alternative employment.

Background

Mr Kennedy, a long-serving employee of the Hendy Group, was a training manager for car sales when he was placed at risk of redundancy. Mr Kennedy accepted that there was a genuine redundancy situation, however challenged his redundancy dismissal, arguing that the employer had failed to adequately consider and offer suitable alternative employment. In the original Employment Tribunal decision in November 2021, the Tribunal found in favour of Mr. Kennedy, highlighting the employer's insufficient efforts in exploring alternative roles within the organisation. Hendy Group appealed this decision.

EAT's Judgment

Upon appeal, the EAT upheld the Employment Tribunal's decision, reinforcing the principle that employers must make reasonable efforts to identify and offer suitable alternative employment to employees at risk of redundancy. The EAT emphasised that employers are required to take proactive steps to identify potential alternative roles within the organisation, considering the employee's skills, experience, and personal circumstances.This involves employers clearly communicating the details of any alternative roles to the employee, providing sufficient information to enable an informed decision, and engaging in meaningful consultation with employees, offering support and guidance throughout the redundancy process, including discussions about potential alternative employment opportunities.

Implications for Employers

This judgment serves as a critical reminder for employers to:

• Conduct Thorough Assessments: Ensure that all potential alternative roles are thoroughly assessed for suitability, taking into account the employee's qualifications and personal circumstances.
• Maintain Open Communication: Keep employees informed about the redundancy process and any potential alternative roles, providing clear and timely information.
• Document Efforts: Maintain comprehensive records of all actions taken to identify and offer alternative employment, as this documentation may be crucial in defending against potential claims.

Conclusion

The EAT's decision underscores the importance of employers ensuring that they thoroughly assess and offer suitable alternative employment during redundancy processes, as failure to do so can result in unfair dismissal claims.

Employers are encouraged to review their redundancy procedures to ensure they are following fair and transparent employment practices.

For expert advice on redundancy procedures and alternative employment obligations, please contact our Employment Team.