Strictly speaking, an employee cannot "refuse" to be made redundant. Redundancy is a form of dismissal initiated by the employer — the employee does not need to agree to it. However, the employee has several important rights and options that affect the process and outcome.
Challenging the Process
While an employee cannot refuse the redundancy itself, they can challenge whether:
- The redundancy situation is genuine
- They were fairly selected
- Adequate consultation took place
- Alternative employment was properly considered
These challenges form the basis of an unfair dismissal claim. The employee has three months minus one day from the effective date of termination to bring a claim.
Refusing an Alternative Role
If the employer offers suitable alternative employment, the employee has a statutory right to a trial period. However, if the employee unreasonably refuses a suitable alternative, they lose their right to statutory redundancy pay.
Whether a refusal is "reasonable" depends on the circumstances — including differences in pay, status, hours, location, and the employee's personal circumstances.
Volunteering for Redundancy
Some employers offer voluntary redundancy before moving to compulsory redundancy. Volunteering allows the employee to leave on agreed terms, often with an enhanced package. However, employers are not obliged to accept every volunteer — they may need to retain employees with specific skills.
Negotiating a Settlement
Employees facing redundancy may negotiate a settlement agreement — a legally binding document where the employee agrees not to bring tribunal claims in exchange for an agreed financial package. This often includes enhanced redundancy pay, payment for untaken holiday, and sometimes a contribution towards legal fees.
Working Notice vs Gardening Leave
The employee is entitled to work their notice period unless the employer places them on garden leave or makes a payment in lieu of notice. The employee cannot be required to leave immediately without either option being exercised.
If you're making redundancies and facing employee resistance, our redundancy management team can help. Contact us.