Redundancies are never easy, but as Kat Moody, Associate Solicitor in the Employment team at Richard Reed Solicitors, explains, the law requires more than simply proving a genuine business need. Under section 98(4) of the Employment Rights Act 1996, an employer must not only show that a genuine redundancy situation exists, but also demonstrate that it acted reasonably in treating redundancy as the reason for dismissal. This includes taking proactive steps to identify suitable alternative employment for anyone at risk.
Kat points to a recent case that highlights the importance of this duty. In Hendy Group Ltd v Kennedy [2024] EAT 106, the Employment Appeal Tribunal upheld a decision that Mr Kennedy’s dismissal was unfair because the employer failed to consider and support redeployment properly.
The Tribunal found there were several internal roles for which Mr Kennedy was qualified and keen to apply, yet the employer took no practical steps to assist him. HR suggested no vacancies, provided no application support, and removed his access to the internal email and intranet just a week after informing him of his dismissal. From that point, his access to internal vacancies was no better than that of any member of the public. The Tribunal concluded that, had adequate support been offered, it was likely Mr Kennedy would have secured alternative employment within the organisation.
As Kat explains, what is deemed reasonable, and what constitutes adequate support, will depend on the size and resources of the employer. However, it is generally reasonable to expect employers to keep communication open and transparent, actively discuss available options with affected employees, explore redeployment opportunities in good faith, highlight specific roles that may be suitable, and ensure that any application procedures are fair and accessible. Removing access to internal systems too early, failing to signpost vacancies, or placing the onus entirely on the employee to search and apply, without assistance, are all steps that risk rendering a dismissal unfair.
For Kat, the message to employers is clear: a fair redundancy process is about more than avoiding legal claims. It can protect workplace morale, preserve valuable skills, and safeguard your organisation’s reputation. Tribunals look at the overall fairness of the approach taken, so treating redeployment as a genuine opportunity rather than a formality is key to demonstrating compliance with the law.
If your business is considering restructuring or facing difficult headcount decisions, early advice can make all the difference. Kat Moody is experienced in advising on redundancy matters and can offer clear, practical legal support to both employers and employees. Whether you are a business owner planning redundancies or an employee who has been offered redundancy, contact Kat today for expert guidance.
For professional advice on redundancies and redeployment, contact Kat Moody, Associate Solicitor (Employment) at Richard Reed Solicitors.
