Case Law Update – July 2025

by | Aug 2, 2025 | Employment Law Update

Signposting Isn’t Enough: Active Support Needed in Redundancy Cases
Case: Hendy Group Ltd v Daniel Kennedy [2024] EAT 106

 

Case Summary
Background

Daniel Kennedy, a long-serving trainer at Hendy Group Ltd (a car dealership), was made redundant in 2020. He accepted both the need for redundancies and his selection. However, he claimed his employer failed to explore alternative roles for him.

What the Employer Did
The employer pointed Mr. Kennedy to its internal job board and expected him to apply, like any external candidate. He did apply and attended interviews but wasn’t successful. Instead, an internal candidate and an external candidate were appointed, neither of whom were at risk of redundancy.

Crucially, there was no HR or managerial support to help him find a suitable alternative. It is also important to note that one internal manager actively discouraged his applications, and the employer later confirmed in writing that any further applications made by Mr Kennedy would be rejected.

Tribunal Finding
The Employment Tribunal (ET) ruled that the dismissal was unfair because the employer had failed in its obligation to the Claimant to assist him to find an alternative role. In summary that the mere signposting to vacancies, whereby the Claimant was in the same position as an external candidate was insufficient.

Appeal Outcome
The employer appealed but the Employment Appeal Tribunal (EAT) upheld the ET’s decision.

The EAT rejected the appeal on all points, reinforcing that:

  1. Employers must actively assist employees in finding suitable alternative employment.
  2. Simply pointing employees to internal vacancies is not sufficient.
  3. The ET was entitled to conclude that Mr. Kennedy would likely have been redeployed with proper support, as there were a number of vacancies for which, on paper at least, Mr Kennedy may have been suitable. As a result, no reduction in compensation (Polkey) was required.

Take Aways

  • Redundancy support must go beyond job postings. Active engagement is key—HR/line managers should help identify suitable roles, discuss interests, and offer guidance (even if this involves potential demotion).
  • Document support efforts clearly—failure to do so could lead to a finding of unfair dismissal.
  • Don’t block or discourage internal applications from employees at risk of redundancy.
  • Reasonableness remains central—but what is “reasonable” now includes taking steps beyond minimal signposting.
  • If you’re managing a redundancy process, ensure your HR team is prepared to offer real, practical support when considering suitable alternative roles.

Refreshing Law Ltd – 30 July 2025