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.

Action Points

1. If you are restructuring and there are alternative roles consider carefully how you are going to match employees with the new roles.
2. Analyse the differences in the roles between old and new and try to consider how it will be perceived from the employee’s perspective.
3. Discuss any objections with the employee and see if you can reach an agreement.
4. Seek advice if you are unsure whether you are required to make a redundancy payment or not.

Useful Links

Devon Primary Care Trust v Readman – Court of Appeal

Claim for redundancy pay or other payments where the employer is insolvent

Redundancy Mini-Series

• 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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