Before confirming a redundancy, employers have a duty to consider whether suitable alternative employment exists within the organisation. This is both a legal obligation and a practical way to retain skilled employees. Getting this right is important — offering a genuinely unsuitable role, or failing to offer a suitable one, both carry legal risks.
What Makes an Alternative "Suitable"?
Suitability is assessed objectively by comparing the new role to the old one. Factors include:
- Pay and benefits — is the remuneration broadly comparable?
- Status and seniority — is it a demotion?
- Working hours — are hours and patterns similar?
- Location — how far is the new workplace, and is commuting reasonable?
- Skills match — does the role use the employee's existing skills and experience?
- Job content — is the nature of the work broadly similar?
The role does not need to be identical — but it should be broadly comparable and not represent a significant downgrade.
The Trial Period
Employees who accept an alternative role have a statutory right to a trial period of at least four weeks. During this time:
- The employee can assess whether the role is genuinely suitable
- If the employee (or employer) decides it isn't working, the employee can leave and still receive redundancy pay
- The trial period can be extended beyond four weeks by written agreement if retraining is needed
Unreasonable Refusal
If an employee unreasonably refuses a suitable alternative, they lose their right to statutory redundancy pay. Whether the refusal is reasonable is judged by looking at both the objective suitability of the role and the employee's personal circumstances:
- A significant pay cut may make refusal reasonable
- Caring responsibilities may make a location change unreasonable
- Health issues may make certain types of work unsuitable
- A significant change in status or responsibility may justify refusal
Employer Obligations
Employers should:
- Actively look for alternative roles across the whole organisation (and group if applicable)
- Offer alternatives in writing with clear details of the role
- Give the employee time to consider the offer
- Document the process — tribunal will want to see evidence that alternatives were genuinely considered
Our redundancy management service includes identifying and managing alternative employment offers. Get support.