Restructure and redundancy: When do you have to pay redundancy pay if there is alternative employment available?
In this episode of the podcast I cover a question from a listener which follows on nicely from the last episode when I answered a question about changing employee hours and redundancy. In this episode I tackle the difficult issue for employers regarding suitable alternative employment and the impact of an employees refusal on their right to redundancy pay.
In this episode I will cover:
- The legal position in the Employment Rights Act about redundancy payments.
- What an employer should consider when deciding if a role is a ‘suitable alternative’ or not.
- How an employer should make an offer of alternative employment and what to include.
- The circumstances in which an employee can generally refuse an offer and when that refusal will be reasonable.
- Practical steps for employers to take when considering alternative employment.
- How to try to resolve potentially difficult issues with employees.
- If you are restructuring and there are alternative roles consider carefully how you are going to match employees with the new roles.
- Analyse the differences in the roles between old and new and try to consider how it will be perceived from the employee’s perspective.
- Discuss any objections with the employee and see if you can reach an agreement.
- Seek advice if you are unsure whether you are required to make a redundancy payment or not.
Devon Primary Care Trust v Readman – Court of Appeal
- Redundancy Part 1: An Introduction (Episode 040)
- Redundancy Part 2: Consultation (Episode 041)
- Redundancy Part 3: Selection (Episode 042)
- Redundancy Part 4: Alternative Vacancies (Episode 043)
- Redundancy Part 5: Redundancy Pay (Episode 044)
- Redundancy Part 6: FAQs (Episode 045)
Please do leave any comments, ideas and best practice below. Please ensure that any comments are respectful to all views and opinions.
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The information contained in this Podcast and post is provided for guidance and is a snapshot of the law at the time. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.
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