Suitable Alternative Employment in Redundancy

The redundancy process can be challenging for both employers and employees, often leading to uncertainty and anxiety. Under UK employment law, employers have specific obligations when it comes to redundancy, including the need to explore suitable alternative employment options for affected employees.

If a suitable alternative role is available, an employer cannot make the employee redundant without offering it to them. Failure to meet this requirement can expose the employer to claims for unfair dismissal.

In practice, offering an alternative role can help to mitigate the emotional and financial impact of redundancy on employees, in particular, those on, or who have recently taken, maternity leave or other types of parental leave, who benefit from first refusal on any available roles.

However, it is also not uncommon for the role to be refused by the employee, and it will be important for the employer to handle any such refusal in the correct way.

In this guide for employers, we explain the rules you need to follow when offering alternative employment as part of a lawful redundancy process, including what makes a role suitable alternative and how this stage fits into the wider redundancy procedure. We also share best practices and consider common areas of risk to help avoid the potential for complaints.

 

Section A: Suitable Alternative Employment in Redundancy

 

Redundancy occurs when an employer needs to reduce their workforce due to various factors such as economic downturns, changes in business strategy, or technological advancements.

Employers in the UK have specific legal obligations when managing redundancy situations. The Employment Rights Act 1996 outlines the requirement for employers to follow a fair process, which includes conducting proper consultations with employees who may be affected, and considering suitable alternative employment opportunities within the organisation or associated entities, before proceeding with dismissals.

This means an employer undergoing a redundancy exercise must offer suitable alternative employment to any employee who is at risk of redundancy if such a position is available or becomes available during the redundancy process.

Failure to adhere to these legal requirements can lead to claims of unfair dismissal, resulting in potential financial liabilities and reputational damage.

 

Table: Comparison of Legal Obligations

Aspect	Employer Responsibilities	Employee Rights
Consultation Process	Conduct fair consultations with affected employees	Right to be informed about redundancy reasons
Suitable Alternatives	Offer suitable alternative roles	Right to be considered for other positions
Notice Period	Provide proper notice as per employment contracts	Right to receive appropriate notice
Selection Criteria	Use fair and non-discriminatory criteria	Right to appeal selection decisions

 

1. What is Suitable Alternative Employment Due to Redundancy?

 

Suitable alternative employment refers to a different role in an organisation being offered to an employee who is at risk of redundancy. The aim of offering suitable alternative employment is to try to avoid dismissal by redundancy by redeploying the individual to a different job for the same employer or an associated organisation.

Employees entitled to statutory redundancy pay are also entitled to be offered any suitable alternative employment. As such, any employee who has worked for the employer for at least two years at the time that their job ends should be offered an alternative role if one is available.

Suitable alternative employment should be offered to the relevant employee before their current contract of employment comes to an end, and the new role must begin no later than four weeks after their current role ends.

Failure to comply with the above will result in the employee having been made redundant and entitled to receive statutory redundancy pay.

 

2. Suitable Alternative Employment and Parental Leave

 

Special legal protection applies to employees who are pregnant, on maternity leave, adoption leave, or shared parental leave, but not to those on other types of leave, such as paternity leave. The period during which an employee has this redundancy protection is known as the “redundancy protected period” and depends on the type of leave or when the employee notifies their employer of the pregnancy.

Under the Employment Rights Act 1996, employers must ensure that any employees on, or have recently taken, maternity or other types of parental leave are treated lawfully and fairly during any redundancy process. This means offering suitable alternative roles if available.

If suitable alternative vacancies exist, employers must offer them to employees who have this redundancy protection, giving them priority over other employees, even if others are also suitable. Failing to do so may be considered automatically unfair dismissal.

In cases where there are not enough vacancies for all employees with redundancy protection, the employer must decide who is most suitable for the roles based on criteria such as skills, job knowledge, and experience. The employer should clearly communicate the decision-making criteria in writing. If no vacancy is offered, a meeting should be arranged to explain the decision to the affected employee.

If an employee is not offered the alternative role because of their pregnancy or maternity, for example, because they would not start the new role until the end of their maternity leave, this would be unlawful maternity discrimination.

 

3. Implications of Not Offering Suitable Alternative Employment

 

An employer who fails to consider whether there is any suitable alternative employment or who does not offer such employment to an affected employee may be deemed to have followed an unfair redundancy process, with the result that the relevant employee could be deemed as having been unfairly dismissed.

 

Section B: What Constitutes Suitable Alternative Employment?

 

Suitable alternative employment refers to roles that align with the employee’s skills, experience, and circumstances, providing them with an opportunity to transition within the same or associated organisation rather than facing unemployment.

 

1. Criteria for Suitable Alternative Roles

 

Suitable alternative employment is another role within the organisation for which the relevant employee already works or an associated company. Such a role must be ‘suitable’ for the employee in question and various factors will be taken into account in determining its ‘suitability’.

Fundamentally, suitable alternative employment is defined as a position that offers an employee terms and conditions comparable to their current role. It is the employer’s responsibility to show that the offered job is suitable.

The criteria for determining whether a role is considered suitable include:

 

a. Skills and Experience

The new role should align with the employee’s existing skills, qualifications, and professional experience. If the employee can perform the job with minimal additional training, it is likely to be deemed suitable.

However, employers should not assume that an employee who appears to be underqualified will be unable to fulfil the role and, conversely, that a seemingly overqualified employee will not accept a more junior position. Training may bring the employee up-to-speed with the skills required, for example, or an individual may be content taking a less senior role if the workload or stress levels are correspondingly lower.

 

b. Pay and Benefits

The terms of the new position, including salary and benefits, should be comparable to the employee’s current compensation. A significant reduction in pay or benefits can make a role unsuitable.

 

c. Location

The job should ideally be located within a reasonable commuting distance from the employee’s current location. A significant change in location can be a barrier to acceptance.

 

d. Working Conditions

The new role should offer similar working conditions, such as hours, flexibility, and responsibilities. Major changes in working conditions may affect the suitability of the role.

 

e. Responsibilities

Consider the employee’s actual current role, not just their job description. Often, a role will change over time, and the job description specified in an employee’s contract of employment may no longer be accurate.

 

f. Job Security

The alternative employment should provide a level of job security similar to the employee’s current role, minimising uncertainty during the transition.

 

2. Examples of Suitable Alternative Employment

 

Examples of suitable alternative employment can vary based on the organisation’s structure and the roles available. Some common scenarios include:

 

Table: Types of Suitable Alternative Roles

Type of Role	Description	Examples
Internal Transfers	Moving to a different position within the same department	Salesperson to Customer Service Representative
Job Reassignments	Transitioning to a new role in a different department	Marketing Specialist to Digital Marketing Manager
Reskilled Positions	Positions requiring additional training or skills development	Junior Developer to Software Engineer after training
Part-Time Roles	Flexible roles accommodating personal circumstances	Full-time employee to part-time administrative support

 

a. Internal Transfers

An employee in a sales position may be offered a role in customer service within the same department, utilising their communication skills and knowledge of the company’s products.

 

b. Job Reassignments

A marketing professional whose role is being made redundant may be reassigned to a different marketing function, such as digital marketing or content creation, that leverages their existing expertise.

 

c. Newly Created Roles

Companies may create new positions to accommodate employees’ skills. For example, if a technology company is restructuring, a developer may transition into a project management role overseeing new software initiatives.

 

d. Part-Time or Flexible Roles

If an employee’s circumstances change (e.g., caring responsibilities), offering part-time or flexible positions that accommodate their needs can be considered suitable alternatives.

 

Section C: Strategies for Identifying Suitable Alternatives

 

Employers can implement various strategies to ensure that they effectively match affected employees with appropriate roles within the organisation.

 

1. Skills Assessment

 

A comprehensive skills assessment will help in identifying suitable alternative roles for employees facing redundancy. This involves evaluating the skills, qualifications, and experience of affected employees to understand their potential fit for other positions within the organisation.

Strategies for conducting an effective skills assessment include:

 

a. Individual Assessments: Hold one-on-one meetings with employees to discuss their skills, experiences, and career aspirations. This can help identify transferable skills that may be applicable to other roles.

b. Skills Inventory: Create a skills inventory or database that outlines the competencies of affected employees. This can facilitate the matching of employees to available positions based on their skills and qualifications.

c. Feedback Mechanisms: Encourage employees to provide feedback on their perceived skills and interests. This information can be valuable in identifying suitable alternatives that align with their preferences.

 

2. Internal Job Posting Systems and Communication Channels

 

Implementing an internal job posting system is an effective strategy for ensuring that affected employees are aware of available roles within the organisation. This system can streamline the process of matching employees with suitable alternatives and can take various forms, including:

 

a. Dedicated Job Boards: Create a dedicated section on the company intranet or employee portal where internal job openings are posted. Ensure that this board is regularly updated and accessible to all employees.

b. Email Notifications: Utilise email communication to notify affected employees about available positions. Consider creating tailored emails that highlight roles matching their skills and experiences based on the earlier assessment.

c. Regular Meetings: Host regular meetings or workshops to discuss available roles and encourage employees to ask questions about the positions. This creates a platform for open dialogue and helps demystify the internal application process.

 

3. Collaborating with HR to Find Suitable Roles

 

Collaboration with the Human Resources (HR) department is critical in identifying and facilitating suitable alternative employment for employees facing redundancy. HR plays a vital role in understanding organisational needs and employee capabilities.

Key strategies for collaboration include:

 

a. Workforce Planning: Engage HR in workforce planning initiatives to identify current and future staffing needs. This can help pinpoint areas where employees can be redeployed based on skill sets and organisational requirements.

b. Training and Development Programmes: Collaborate with HR to develop training and development programmes aimed at upskilling employees for available positions. Offering retraining opportunities can make it easier for employees to transition into new roles.

c. Mentorship Programmes: Establish mentorship programmes that connect employees with existing staff members in departments with available roles. This can facilitate knowledge transfer and support employees in acclimating to new positions.

 

Section D: Offering Alternative Employment

 

Employers must follow a lawful process when offering suitable alternative employment to an employee. Failure to do so could result in the employee being able to refuse the offer of the new role and being entitled to statutory redundancy pay.

 

1. Make a Job Offer

 

There must be a clear offer. The offer can be made in writing or orally, but it is strongly advised that a written offer be given, even if you also wish to discuss the matter with the employee in person. This is because the onus is on the employer to show that they offered a suitable alternative role to the employee.

You should also still make an offer, notwithstanding the fact that the employee has already informed you that they are not interested. Failure to make the offer, even if you know that the employee will refuse it, will result in your not having acted reasonably during the redundancy process.

Asking an employee to apply for a role, rather than offering them a role, is unlikely to be sufficient. If an employee applies for a new role but this is not then offered to them, they will be entitled to statutory redundancy pay on the basis that they were not offered suitable alternative employment.

 

2. Timing of the Offer

 

Ensure that the offer is made prior to the employee’s current job ending and that the new role begins no later than four weeks after the end of the employee’s current role.

Any delay in making the offer or starting the new role could mean that the employee is automatically entitled to redundancy pay.

Employers should provide sufficient notice of the new role, allowing the employee enough time to consider the offer and make an informed decision. Rushing this process may lead to the employee rejecting the role due to insufficient understanding of its details or how it compares to their existing position.

 

3. Provide Sufficient Information

 

You will need to provide enough information to the employee about the new role to enable them to make an informed decision as to whether to accept it or not. This should detail what their role will be and any differences between their current role and the new job.

 

Table: Job Offer Information

Aspect	Details to Provide
Job Title and Responsibilities	Clearly outline the specific title of the role and the main duties and responsibilities associated with the position.
Location of the New Role	Specify the location where the employee will be based, including any differences from their current workplace.
Hours of Work and Shift Patterns	Include details about the working hours, any shift patterns, and whether there are changes from the employee’s current working schedule.
Salary and Benefits	Provide full details of the salary, bonus schemes, and other benefits associated with the new role, noting any changes from the employee’s current package.
Differences from the Employee’s Current Role	Highlight any key differences, such as changes in workload, team structure, or seniority level, compared to their current position.

 

If you are offering several roles, enough information must be given about each of them so that the employee can differentiate between them and make a choice.

 

4. Trial Period

 

An employee who is offered suitable alternative employment is entitled to a four-week trial period in the new role if there is any difference between their current job and the new job. The four weeks cannot be extended to cover any time off for holidays or sickness, and any such trial period must start once the employee’s current job has ended.

Extension of the trial period is permitted if any training is required for the new role. The start and end dates of any extension should be agreed in writing between the employer and employee before the trial period starts, and it is advised that the start and end dates of the trial period, even if not extended, should also be set out in writing to avoid any uncertainty.

If the employer has offered the employee more than one suitable alternative role, there will be a four-week trial period for each position.

Once the employee agrees to the trial period, it is important to document the start and end dates of the trial and any agreements regarding training or role changes. This ensures both parties are clear about the timeline and expectations. If the employee decides to reject the role during or after the trial period, they must inform the employer before the trial ends.

If the employee accepts the role after the trial, they will be considered to have transitioned to the new role, and no redundancy pay will be due.

 

5. Formalising the Offer in Writing

 

While a verbal discussion about the new role is encouraged, the offer should always be documented in writing. This provides transparency and ensures both parties have a record of what was agreed. The written offer should include:

 

a. A full description of the job duties

b. Terms of employment, including salary, hours, and location

c. Details of the trial period, including start and end dates

d. Any necessary training that will be provided during the trial period

 

Providing a written offer ensures that the employee has all the information needed to evaluate the role properly and prevents potential misunderstandings.

 

6. Employee Refusal of Suitable Alternative Employment

 

An employee can refuse the offer of suitable alternative employment if they believe the new role is not appropriate. However, the refusal must be reasonable. If the employee rejects the role unreasonably (for example, refusing a role that is very similar to their current position), they may lose their right to statutory redundancy pay.

Employers should engage in open conversations with employees who are considering refusing the role to understand their concerns. In some cases, adjustments to the job or further clarification about the role may change the employee’s mind. It is important to handle these discussions with care, as they can affect the outcome of the redundancy process.

 

7. Employee Accepts Suitable Alternative Employment

 

If an employee accepts the suitable alternative employment, they are deemed as not having been dismissed at the end of their old job and, consequently, will not be entitled to any statutory redundancy pay. Instead, they will begin their new role under the terms of their new contract of employment.

It is important that their new role is adequately documented, even if the changes between their old job and the new are minor. This ensures certainty for both employee and employer and compliance with the law.

 

Section E: Employee Refuses Suitable Alternative Employment

 

An employee can refuse an offer of suitable alternative employment if they wish, on the grounds that the role is not ‘suitable’. They must notify their refusal to their employer prior to the ending of their current job or, if there is a trial period for the new role before the trial period ends. If they do not give notice in time, they will lose their right to any statutory redundancy pay.

If an employee reasonably refuses an offer of suitable alternative employment, they are considered as having been dismissed on the grounds of redundancy and entitled to any statutory redundancy pay.

If an employee ‘unreasonably’ refuses an offer of suitable alternative employment, they are considered as having been dismissed on grounds of redundancy but lose their entitlement to statutory redundancy pay.

It is this scenario which, understandably, often leads to disagreement between the employer and employee on the basis that the employee considers their refusal to be reasonable while the employer does not.

It is the employer’s responsibility to show that the employee’s refusal of the new job was ‘unreasonable’.

 

1. Reasonableness

‘Reasonableness’ will hinge on factors such as the new job’s impact on the employee’s home life, any health issues suffered by the employee, the time is given to the employee to make a decision, whether the job is a temporary or part-time role, if the pay is much less, and so on.

As such, reasonableness will be determined on the specific facts, including the employee in question and their personal circumstances; what amounts to a reasonable refusal by one employee could be an unreasonable refusal by another.

An employee who does not receive any redundancy pay because their employer believes their refusal of suitable alternative employment to be unreasonable is likely to bring a grievance against their employer and possibly seek ‘early conciliation’ through ACAS in an attempt to resolve the dispute. If early conciliation does not work for them, they could bring a claim in the employment tribunal against the employer for redundancy pay and, possibly, unfair dismissal.

 

2. Mobility Clauses

If the employee has a mobility clause in their contract of employment, which allows the employer to insist that the employee can work in a different location, the employee’s refusal of suitable alternative employment on the grounds of location may be unreasonable, thereby resulting in their losing the right to statutory redundancy pay. That said, mobility clauses need to be carefully considered, and employers should be wary of using them without first taking legal advice.

 

Section F: Communicating with Employees

 

Clear and compassionate communication during the redundancy process helps employees understand their options, including suitable alternative employment and mitigates the anxiety often associated with redundancy.

Employers should prioritise transparent dialogue and actively listen to employee concerns to foster a supportive environment.

 

Table: Communication Strategies During Redundancy

Strategy	Description	Benefits
One-on-One Meetings	Individual discussions with affected employees	Personalised communication and support
Group Workshops	Sessions to discuss available roles and answer questions	Facilitates open dialogue and peer support
Regular Updates	Ongoing communication about redundancy progress	Reduces uncertainty and anxiety
Feedback Mechanisms	Collecting employee concerns and suggestions	Demonstrates that employee input is valued

 

1. Best Practices for Discussing Alternative Employment

 

When discussing alternative employment with affected employees, employers should adopt several best practices to ensure that the conversation is constructive and respectful:

 

a. Prepare for the Conversation: Before meeting with employees, prepare an agenda that outlines the key points to discuss, including available alternative roles and the rationale behind redundancy. This helps create a structured dialogue.

b. Use Empathetic Language: Approach conversations with empathy and understanding. Acknowledge the emotional impact of redundancy and frame discussions about alternative roles in a positive light, emphasising opportunities for growth and continued employment.

c. Be Clear and Direct: Provide clear information about available roles, including job descriptions, requirements, and potential career paths. Avoid jargon and ensure that employees understand the details, as confusion can lead to further anxiety.

d. Encourage Questions: Create an open environment where employees feel comfortable asking questions and expressing concerns. Encouraging dialogue fosters trust and demonstrates that their voices are valued.

e. Follow-Up Communication: After initial discussions, provide follow-up communications summarising key points and next steps. This reinforces the information shared and allows employees to revisit their options without feeling overwhelmed.

 

2. Transparent Communications During Redundancy

 

When employers communicate openly about the reasons for redundancy, the selection process, and the available alternatives, they demonstrate respect for employees and their contributions to the organisation. Key aspects of transparent communication include:

 

a. Building Trust: Open communication fosters trust between employers and employees. When employees feel informed, they are more likely to accept the situation and explore alternative employment options.

b. Reducing Uncertainty: Providing clear information about the redundancy process, timelines, and available support helps alleviate anxiety and uncertainty. Employees are more likely to engage with the process when they understand what to expect.

c. Enhancing Reputation: Organisations that communicate transparently during redundancy demonstrate a commitment to ethical practices. This not only protects the company’s reputation during the redundancy process but also positively influences its standing in the long term.

d. Facilitating Transition: Transparent communication regarding available alternative roles and the skills required for those positions can aid in smoother transitions for employees, helping them feel supported during their job search.

 

3. Addressing Employee Concerns and Feedback

 

Addressing employee concerns and feedback is a critical component of effective communication during redundancy. Employers should actively seek to understand the perspectives of affected employees and respond appropriately. Strategies for addressing concerns include:

 

a. Conducting Feedback Sessions: Host feedback sessions or focus groups to gather insights from affected employees about their experiences and concerns. This provides a platform for employees to voice their feelings and ideas regarding alternative employment.

b. Listening Actively: Employ active listening techniques during discussions, such as summarising what employees have said to ensure understanding and validate their feelings. This shows employees that their concerns are taken seriously.

c. Providing Resources: Offer resources and support to address specific concerns, such as career counselling, resume writing workshops, or access to job placement services. Demonstrating a commitment to helping employees transition successfully can alleviate fears.

d. Maintaining Ongoing Dialogue: Keep communication lines open even after initial discussions. Regular updates about the redundancy process, available roles, and employee concerns can help reinforce trust and engagement.

 

Section G: Best Practice Advice for Employers

 

The following are best practices from our experts to help employers deal with the common risks of suitable alternative redundancy.

 

1. Record Keeping

Keep written notes of any discussion or consideration of suitable alternative roles. Show that you have properly thought about whether there are any alternative roles available and why they may be ‘suitable’. If no suitable alternative roles exist to begin with, keep revisiting the question during the redundancy process in case any arise before the employees’ current jobs end.

 

2. Written Offer

Even if an employee has indicated they are not interested in an alternative role, the employer must still formally offer it, preferably in writing, even if they have already intimated that they will not accept the offer, giving adequate detail of the new role. A written offer provides clarity and prevents any misunderstandings. It should contain adequate detail about the role, including job title, duties, hours, salary, and location. The offer serves as evidence that the employer acted reasonably and provided the employee with an opportunity to stay within the organisation.

 

3. Engage Employees in Open Discussions

When offering an alternative role, employers should engage the employee in open discussions about the terms of the new role.

Discuss the terms of any alternative roles with the relevant employee(s) and ask for their views and thoughts. Try to compromise or accommodate their wishes where possible.

 

4. Allow Adequate Time for Employees to Consider Offers

Ensure that employees have a reasonable length of time to consider whether to accept the offer of suitable alternative employment. Rushing this process could lead to hasty decisions or feelings of undue pressure, which may result in the employee rejecting a role they might otherwise have accepted. Providing a clear deadline for responding to the offer ensures the process remains efficient while still giving the employee ample time to make an informed decision.

 

5. Address Employee Concerns About Suitability

If the employee does not consider that the new role is ‘suitable’, have an open conversation with them to try and understand why they think this; it may be possible to alleviate their concerns or make small adaptations to the role, which will change their mind.

 

6. Document Trial Period Dates and Training Extensions

Provide the dates of any trial period and any extension for training purposes in writing to the employee.

 

7. Enter into New Contracts for Employees Accepting New Roles

If the employee accepts the suitable alternative role, a new contract of employment should be drafted and signed to formalise the arrangement. Even if the changes from their previous role are minimal, having a new contract in place helps to avoid potential disputes in the future and ensures both the employer and employee understand the terms of the new role.

 

8. Check Redundancy Pay

Check your company or enhanced redundancy pay policy to ensure that it reflects the statutory position with regard to acceptance or not of suitable alternative employment. Ensure that this is made clear to employees in the event of a redundancy situation.

 

Section H: Case Studies

 

Examining case studies of companies that have successfully implemented suitable alternative employment during redundancy can provide valuable insights into effective practices and strategies. These examples illustrate how organisations can navigate the complexities of redundancy while prioritising employee well-being and minimising disruptions.

 

Case Study 1: IBM

In the face of significant restructuring and technological changes, IBM implemented a comprehensive redundancy plan that focused on internal mobility.

The company conducted detailed skills assessments of affected employees and identified potential alternative roles within different divisions. IBM also invested in reskilling programmes to prepare employees for new positions.

As a result, a substantial percentage of affected employees were successfully redeployed to suitable alternative roles, reducing turnover and maintaining workforce morale during a challenging transition.

 

Case Study 2: BT Group

During a period of workforce reduction, BT Group faced the challenge of needing to lay off employees while ensuring that they complied with legal requirements.

BT established an internal job board to promote available positions and organised career transition workshops to help employees understand their options. They also provided training sessions to equip employees with the skills needed for available roles.

The proactive measures taken by BT Group led to a significant number of employees accepting alternative roles, thereby minimising redundancies and enhancing employee loyalty to the organisation.

 

Case Study 3: Deloitte

As part of its restructuring efforts, Deloitte faced the challenge of reducing its workforce while maintaining its reputation as a leading employer in the consulting industry.

Deloitte engaged in thorough consultations with affected employees to discuss potential alternative roles. The company also developed personalised transition plans for employees, taking into account their skills and career aspirations.

This approach resulted in a high rate of employee acceptance of alternative positions, ultimately preserving valuable talent within the organisation and reinforcing Deloitte’s commitment to its workforce.

 

Section I: Summary

 

Suitable alternative employment refers to a different role being offered to an employee who is at risk of redundancy.

For the new position to be deemed suitable, it should be comparable to the employee’s previous role in terms of duties, salary, benefits, location, and working hours. The aim is to avoid dismissal by providing an alternative that aligns with the employee’s skills and experience.

UK employers are legally obligated to offer suitable alternative roles if available, and failing to do so can result in claims for unfair dismissal. Employers should conduct thorough skills assessments to ensure the new role matches the employee’s capabilities and offer clear communication about the job’s terms. A trial period of up to four weeks can be provided to allow the employee to evaluate the role.

Employers must also be cautious with employees on maternity leave, who have the right to first refusal of suitable alternative positions. If employers do not follow correct procedures, they risk legal action, financial penalties, and damage to employee relations.

Ensuring that all employees, including those on maternity leave, are given fair consideration for suitable roles helps mitigate legal risks and supports a more positive workplace culture during restructuring efforts.

 

Section J: Need Assistance?

 

Redundancy is an emotive process for all concerned. Add to that the legal process and costs associated with it and it is little wonder that employers think very carefully before initiating a redundancy exercise. Where unavoidable, it is critical for employers to follow a fair and lawful process or risk repercussions such as future unfair dismissal claims.

DavidsonMorris’ employment lawyers can help with all aspects of the redundancy process, including guidance on suitable alternative employment and negotiating settlements where appropriate. Working closely with our HR specialists, we offer a holistic advisory and support service for employers encompassing both the legal and people management elements of redundancies. Speak to our experts today for advice.

 

Section K: FAQs

 

What is suitable alternative employment in redundancy?
In redundancy, suitable alternative employment is the offer by the employer to the affected employees of a different role within the organisation or an associated company with the aim that those employees are not then made redundant but take on a new job.

 

What is considered suitable alternative employment?
Whether alternative employment is ‘suitable’ will depend on the circumstances of each case and the position of the relevant employee(s). Consideration should be given to matters such as the role’s similarity with their current job, pay, location and the employee’s skills and ability.

 

Which employees are entitled to suitable alternative employment?
Employees who have worked for the employer for at least two years and are entitled to statutory redundancy pay should be offered any suitable alternative employment that is available.

 

How should suitable alternative employment be offered?
Employers should make a clear offer, preferably in writing, detailing the new role’s responsibilities, terms, and any differences from the current position. This helps ensure that the employee can make an informed decision.

 

Do employees have to apply for suitable alternative employment?
Affected employees should be offered suitable alternative employment rather than being asked to apply for it. If they do apply and are not offered the job, they could bring an unfair dismissal claim against the employer.

 

Is there a trial period for suitable alternative employment?
Employees are entitled to a four-week trial period in the new role if there are differences between it and their current job. This period allows them to assess whether the new position meets their needs.

 

Can an employee refuse suitable alternative employment?
An employee can refuse suitable alternative employment on the grounds that it is not ‘suitable’, but if they do so unreasonably, they will lose their right to statutory redundancy pay.

 

What should employers do if an employee refuses an offer?
If an employee refuses an offer of suitable alternative employment, the employer should discuss the reasons for the refusal. Understanding the employee’s concerns may lead to adjustments that could make the role more acceptable.

 

What if an employee is on maternity leave during redundancy?
Employees on maternity leave must be treated fairly and lawfully. They should be offered suitable alternative roles first, and if they are not offered these roles due to their maternity status, it could be considered unlawful discrimination.

 

How can employers ensure compliance with redundancy laws?
Employers should keep detailed records of discussions and considerations regarding suitable alternative roles. They should also stay updated on legal obligations and best practices for handling redundancies to minimise the risk of unfair dismissal claims.

 

Section L: Glossary

 

Term	Definition
Redundancy	A situation where an employer reduces their workforce due to a role being no longer necessary, often resulting from economic or organisational changes.
Suitable Alternative Employment	A different role within the same organisation or an associated company that is considered appropriate for an employee facing redundancy.
Employment Rights Act 1996	UK legislation that outlines the rights of employees during redundancy processes, including requirements for fair dismissal and consultation.
Consultation	The process of engaging with affected employees regarding redundancy plans, including informing them of their rights and available alternative roles.
Skills Assessment	An evaluation of an employee’s skills, qualifications, and experience to identify suitable alternative roles within the organisation.
Internal Job Posting	A system used by employers to advertise available positions within the organisation to current employees, facilitating internal mobility.
Employee Morale	The overall mood and engagement of employees within the workplace, which can be affected by redundancy processes.
Legal Obligations	The responsibilities that employers have under employment law, including proper consultation and offering suitable alternative employment during redundancy.
Unfair Dismissal	A claim that an employee can make if they believe they have been dismissed without a fair reason or due process, particularly in redundancy situations.
Workforce Planning	The process of analysing and forecasting the needs of an organisation’s workforce to ensure that the right number of employees with the right skills are available.
Severance Pay	Compensation paid to an employee upon termination of employment, typically used in redundancy situations.
Redeployment	The process of moving an employee to a different role within the organisation as an alternative to redundancy.
Transition Plan	A structured approach to assist employees in moving from their current roles to new positions, often including training and support resources.
Employee Engagement	The level of commitment and involvement an employee has towards their organisation and its values, which can be influenced by how redundancies are managed.
Outplacement Services	Support services provided by an employer to assist employees in finding new jobs after redundancy, including career counselling and resume writing assistance.
Trial Period	A designated period (usually four weeks) during which an employee can assess a new role after being offered suitable alternative employment.
Mobility Clause	A clause in an employee’s contract allowing the employer to require the employee to work in different locations, which can affect the reasonableness of refusal of suitable alternative employment.
Company Redundancy Policy	An internal policy outlining the organisation’s approach to redundancy, including any enhancements to statutory redundancy pay.
Enhanced Redundancy Pay	Additional compensation provided by an employer beyond the statutory redundancy pay, often specified in the company’s redundancy policy.

 

Section M: Additional Resources

 

UK Government: Redundancy: Your Rights
https://www.gov.uk/redundancy-your-rights
This official government guide outlines employee rights during redundancy and the legal obligations of employers in the UK.

 

ACAS: Redundancy Process
https://www.acas.org.uk/redundancy
ACAS provides comprehensive guidance on managing redundancy, including consultation processes and suitable alternative employment requirements.

 

CIPD: Managing Redundancy
https://www.cipd.co.uk/knowledge/fundamentals/emp-law/redundancy/factsheet
The Chartered Institute of Personnel and Development offers insights and best practices for managing redundancy fairly and effectively.

 

Employment Rights Act 1996 (Legislation.gov.uk)
https://www.legislation.gov.uk/ukpga/1996/18/contents
The full text of the Employment Rights Act 1996, which governs redundancy rights and processes in the UK.

 

Health and Safety Executive (HSE): Supporting Employees Through Redundancy
https://www.hse.gov.uk/stress/standards/redundancy.htm
This guide from the HSE covers the emotional and mental health support employers should offer employees during the redundancy process.

 

Mind: Supporting Mental Health During Redundancy
https://www.mind.org.uk/information-support/legal-rights/redundancy-and-mental-health/
Mind provides advice for employers on how to support the mental health of employees going through redundancy.

 

Citizens Advice: Redundancy Pay
https://www.citizensadvice.org.uk/work/leaving-a-job/redundancy/redundancy-pay/
This resource offers information about statutory redundancy pay, including eligibility and how it is calculated.

 

ACAS: Managing Staff Redundancy
https://www.acas.org.uk/managing-staff-redundancies
ACAS provides practical advice on managing redundancies fairly, including how to offer suitable alternative employment and deal with disputes.

 

CIPD: Redundancy: Protecting Your Business and People
https://www.cipd.co.uk/knowledge/fundamentals/emp-law/redundancy/
A detailed guide on how to protect both your business and employees when managing redundancies, focusing on legal compliance and employee support.