Suitable alternative employment in redundancy

If your employer offers you another job in place of redundancy, you have the right to a four-week trial period in it. If the job turns out to be unsuitable, you tell your employer during the trial and keep your redundancy rights, including statutory redundancy pay. If you unreasonably turn down a job that was suitable, you may lose that pay.

What makes a job suitable

gov.uk says the test looks at:

• how similar the work is to your current job
• the terms of the job offered
• your skills, abilities and circumstances
• pay (including benefits), status, hours and location

There is no formula. A lower-paid role, or one in a different town when you have caring duties, may not be suitable. Your own circumstances are part of the test, so the same offer can be suitable for one person and not for another.

The four-week trial period

gov.uk says you have the right to a four-week trial period for any alternative employment offered. Three rules sit around it:

• The period can be extended if you need training, but the extension must be agreed in writing before the trial starts.
• If you decide the job is not suitable, tell your employer during the trial. This does not affect your rights, including statutory redundancy pay.
• If you do not give notice within the trial period, you lose the right to claim statutory redundancy pay.

Put your decision in writing and keep a copy, so you can show when you gave notice.

Turning down an offer

gov.uk says you may lose your statutory redundancy pay if you unreasonably turn down suitable alternative employment. It also says you can bring a claim to an employment tribunal if you think the job offered is not suitable. If suitable alternative work was available and not offered to you, your redundancy could be an unfair dismissal.

Keep your reasons factual. Write down why the offer does not suit your skills, pay, hours, location or circumstances, and send them to your employer. Our redundancy selection guide covers the earlier stage, and redundancy rights covers the whole process.

Time off to look for work

If you have been continuously employed for two years by the end of your notice period, you are allowed reasonable time off to look for another job or arrange training. gov.uk says your employer must pay no more than 40 per cent of one week’s pay in total, however much time you take. On a five-day week, if you take four days off in your notice period, you are paid for the first two only.

Pregnancy and family leave

gov.uk says employers must offer a suitable alternative job, if one is available, to employees on or recently returned from maternity leave or other parental leave. The page does not define “recently”, so ask Acas or your union if you are close to the line. Acas also says pregnant employees and new parents must be offered suitable vacancies as a priority.

What the NHS handbook adds

The NHS handbook (version 60) builds extra duties into its redundancy scheme in section 16. Employers have a responsibility to look for suitable alternative employment before making someone redundant, either in their own organisation or through arrangements with another NHS employer. It says suitability is judged by reference to sections 138 and 141 of the Employment Rights Act 1996, with regard to your personal circumstances, and that you are expected to show some flexibility.

The offer must be put to you in writing, or by agreed electronic means, before your contract ends, and you must have reasonable time to consider it. The job should be available no later than four weeks from your termination date. If you do not apply for a job you were offered, you are treated as having refused it. A trial period under the 1996 Act applies if you accept.

Under the handbook, you lose your redundancy payment if you get suitable alternative employment with an NHS employer with a break of no more than four weeks, or if you unreasonably refuse or fail to apply for it. See NHS redundancy pay for the payment itself.

Notice and moving jobs

An alternative job does not remove your right to notice. Acas says your employer must keep paying you through your notice period, and cannot withdraw a redundancy notice unless you agree. If you accept a different job, ask in writing for the start date and for your new terms, and check how your service is treated. Our continuous service guide explains what carries over, and the notice periods guide covers notice.