Why Considering Alternative Employment Matters

We’re in tough times, and for many small businesses, the reality is that difficult decisions are having to be made — including making redundancies. Whether it’s due to rising costs, restructuring, or changes in demand, no employer takes these steps lightly. But before you issue redundancy notices, it’s vital to pause and ask yourself: have you genuinely explored all options for alternative employment?

Why Employers Must Consider Alternative Employment

Redundancy law — and good HR practice — require more than just confirming that a job no longer exists. Employers must take reasonable steps to find and offer suitable alternative employment wherever possible. This not only helps you retain valuable skills and experience but also ensures your redundancy process is legally fair and defensible if challenged.

A Key Legal Reminder: Hendy Group v Kennedy

A recent Employment Appeal Tribunal case, Hendy Group v Kennedy, serves as an important reminder. In that case, a long-serving employee was dismissed for redundancy, but his dismissal was ruled unfair because the employer failed to properly consider redeployment.

Although his role genuinely no longer existed, the company didn’t do enough to support him in applying for internal roles, offer retraining, or communicate about other vacancies. The tribunal found that the employer’s “hands-off” approach — expecting him to apply for vacancies unaided — was unreasonable.

What This Means for Small Business Owners

This case highlights a crucial point for small business owners: redundancy fairness depends not just on reason but on process.

Simply telling employees they can “apply for any vacancies” isn’t enough. You must:

• Actively help them explore alternative roles

• Provide access to vacancy information

• Have meaningful discussions about options

• Consider transferable skills and retraining opportunities

Someone who’s been in one role for years may still bring enormous value elsewhere in your business with some training or adjustments.

The Importance of Communication During Consultation

Keeping communication open is key throughout the redundancy consultation process. Check in regularly with employees at risk, update them if new roles arise, and document your efforts to find suitable alternatives.

Even if no alternative role exists, showing that you genuinely tried can make a significant difference if your process is ever scrutinised at tribunal.

What “Reasonable Steps” Look Like for Small Businesses

For small businesses, taking reasonable steps doesn’t require large HR teams or complex systems. It’s about fairness, empathy and consistency.

This may include:

• Clearly explaining the redundancy situation

• Exploring redeployment opportunities

• Offering retraining or adjustments where possible

Handling redundancies fairly not only protects your business legally but also helps maintain trust and morale among remaining staff.

Additional Requirements for Larger Redundancy Exercises

For restructures involving 20 or more redundancies at one site within 90 days, further collective consultation rules apply.

From 1 December 2025, the legally required HR1 form — submitted to the Secretary of State — will move fully online. Failing to submit it correctly is a criminal offence and can result in unlimited fines, so ensure you meet both consultation and notification requirements.

How HR:4UK Can Support You

At HR:4UK, we understand how challenging it can be for small businesses to manage redundancies fairly and lawfully while still focusing on day-to-day operations.

Our expert team provides practical, straightforward redundancy advice — from planning consultations and selection criteria to supporting redeployment and alternative employment discussions. We help you manage redundancy situations with professionalism, empathy, and full compliance, protecting your business and your people every step of the way. Get in touch today