Redundancy update: importance of considering alternative employment and new digital HR1 form

In the recent case of Hendy Group v Kennedy, a failure to actively seek and consider alternative employment for an at-risk employee made a redundancy dismissal unfair.

Important changes to the HR1 form, which must be submitted to the Secretary of State in a collective redundancy situation, apply from 1 December 2025.

The importance of considering alternative employment

Failing to follow a fair procedure when dismissing by reason of redundancy may result in a tribunal finding that the dismissal was unfair, even if there was a genuine redundancy situation and the selection was justified. As highlighted in the recent case of Hendy Group v Kennedy, an employer will not normally have acted fairly unless they have carried out meaningful consultation and made reasonable efforts to search for and, if available, offer alternative employment. 

Mr Kennedy worked as a trainer for car salespeople in the Hendy Group, with over 30 years’ experience in the industry. He was dismissed by reason of redundancy - it was a genuine redundancy situation, and no other employees were in the selection pool. His dismissal was found to be unfair due to a failure to consider alternative employment – the company’s approach was one which no reasonable employer would have taken:

• During Mr Kennedy's notice period he had to return his laptop and had no access to internal email or the intranet – he therefore had to apply for jobs on the company website in the same way as external candidates.
• There were multiple sales roles available during his notice period. He applied for several of them without any help from HR but was not successful partly because the interviewers could not understand why he was applying for demoted roles.
• Mr Kennedy was told any other applications would not be progressed due to concerns about his motivation in applying for sales-related roles.
• HR did not tell managers he was at risk of redundancy.
• No guidance or help in identifying suitable roles was provided. 
• No training was considered to facilitate a return to a customer facing role.
• Hendy was a large organisation with relatively large resources (the test of reasonableness is considered in light of the employer's size and resources).

This decision highlights the fact that, when an employee is at risk of redundancy, the employer must do more than simply informing them that they can apply for open vacancies. Consider transferable skills – don’t assume an employee will not be interested in a vacancy with reduced status or benefits. Keep lines of communication open throughout the notice period; provide employees with sufficient information to make informed decisions; consider whether to include vacant roles in group companies; and keep records of attempts to find alternative roles.

If there is only one alternative job and more than one employee at risk of redundancy, remember that certain employees have priority for 'suitable alternative vacancies': see our earlier blog.

Collective consultation and new digital HR1 form

In the case of 20 or more proposed redundancies at one establishment within a 90-day period, in addition to individual consultation, the employer must consult with appropriate representatives of the affected employees either:

• At least 30 days before the first dismissal takes effect (where there are 20-99 proposed redundancies); or
• At least 45 days before the first dismissal takes effect (where there are 100 or more proposed redundancies).

A failure to collectively consult can lead to a ‘protective award’ amounting to up to 90 days’ gross pay per affected employee.

In a collective redundancy situation, employers must also submit an advance notification of redundancies form (HR1) to notify the Secretary of State of the redundancies. The timing for submitting the form depends on the number of affected employees and mirrors the above minimum statutory 30 / 45 day periods.

Previously employers have had to download a Word copy of the HR1 form and return it by email. Since early September 2025 a digital HR1 form has been available as an alternative and, from 1 December 2025, only submission using the new digital HR1 form will be possible. The new form aims to simplify the submission process (see guidance here) and makes several key changes by:

• Removing the need to categorise employees by occupational group;
• Inserting a declaration at the end of the form where the responsible person confirms that they have understood the requirement to provide copies of the form to all appropriate representatives;
• Including an additional reason for redundancy - namely, a change in supply chain or loss of supply chain contract; and
• Only accepting consultation dates which have already started or which start on the day the form is submitted - this is an important change for organisations which have previously submitted the HR1 form before starting consultation with the representatives.

A failure to give notice by way of a HR1 form is a criminal offence, punishable by an unlimited fine. An officer of the company who is shown to have consented to, been involved in, or negligently failed to prevent, a failure to notify can also be held personally liable.

Further information

For more information about any of the above, please contact our Employment and immigration lawyers.

Practical guidance on redundancy and unfair dismissal is available on Workbox by Brodies, our award-winning HR and employment law site. To arrange a short demo, please get in touch.