Hendy Group Ltd v Kennedy and its impact on Redundancy Law
A recent judgment from the Employment Appeal Tribunal (EAT), in the case of Hendy Group Ltd v Kennedy, is a clear and timely reminder to all employers of their legal duties under redundancy law to consider suitable alternative roles when undertaking the redundancy process.
The employment law case took place last year, but the judgment was only published in June 2025.
Redundancy law
Section 98(4) of the Employment Rights Act 1996 (ERA 1996) sets out the test for determining whether a dismissal is fair or unfair under redundancy law. Consideration will be given as to whether an employer acted reasonably in treating the reason as sufficient for dismissing the employee, having regard to the circumstances. The standard applied is that of the reasonable employer, considering the size and administrative resources of the employer’s undertaking.
In redundancy cases, the employer has a duty to take reasonable steps to find alternative employment for the employee at risk of redundancy.
You can read a lot more about the redundancy process and the steps for employers in our redundancy guide.
Hendy Group Ltd v Kennedy
This case involved Mr Kennedy, who had been employed by Hendy since 2013 and had a significant amount of experience in the motor industry, specifically in sales. In 2015, he moved to a training role within Hendy.
Due to the COVID-19 pandemic, a genuine redundancy situation arose, and Mr Kennedy was selected for redundancy. Hendy Group Ltd v Kennedy centred around whether Hendy took reasonable steps to assist and find Mr Kennedy alternative employment, a key requirement under redundancy law. Hendy directed Mr Kennedy to its intranet, but beyond that, the HR team took no steps to help him find alternative employment. Mr Kennedy was also not given any assistance to apply for posts, nor were any posts suggested to him.
A week after Mr Kennedy was served with notice of redundancy, he was asked to return his laptop and had no further access to Hendy’s intranet. As a result, he had the same access to potential vacancies as a member of the public. Despite this, Mr Kennedy did apply for several roles. He was interviewed for one position but was unsuccessful. Neither HR nor management provided any support or assistance to Mr Kennedy in these applications, and in some cases, his applications were negatively influenced by feedback from the previous unsuccessful interview. HR did not inform the hiring managers that Mr Kennedy was at risk of redundancy.
In the case of Hendy Group Ltd v Kennedy, the Employment Appeal Tribunal, agreeing with the first instance decision of the Employment Tribunal, found that Mr Kennedy’s dismissal had been unfair. The EAT found that there was a duty on Hendy to consider whether alternative employment could be offered to Mr Kennedy and the extent on its efforts needed to be considered against the size and resources of Hendy. As a large company with numerous vacancies which on paper Mr Kennedy was suitable, the EAT was critical of Hendy and found that the redundancy process and dismissal were unfair.
What does this case show us?
Hendy Group Ltd v Kennedy is a reminder that to satisfy the duty to look for alternative employment, more is generally required than simply informing an employee that they can apply for vacancies on their website. Proactive steps are expected to be taken by employers to assist employees in securing suitable alternative positions. The case also made clear that hiring managers should be made aware that internal candidates are at risk of redundancy.
To ensure that employers are taking reasonable steps, they should consider speaking to employees who are at risk about their skills, experience and where their interests lie in order to help identify roles, even if they may be considered demotions.
Next steps
If you are considering making any redundancies, then professional advice is advised early on in the process. GA Solicitors in Plymouth has a team of highly experienced and regarded employment solicitors, and the team is ranked in The Legal 500.
You can call the team on 01752 203500 or email enquiries@GAsolicitors.com.
You can also view our redundancy guide for employers here.
All content on this website (inclusive of guides, blogs and imagery) is strictly copyrighted by Gill Akaster LLP, trading as GA Solicitors. It is not to be used by any third party without prior contact and permission. Any requests for content should be sent to katy.mckenna@GAsolicitors.com.