Suitable alternative employment
Suitable alternative employment is another job an employer offers to an employee at risk of redundancy when the role and terms may reasonably fit.
Decide suitability for this employee
A vacant role is not suitable merely because its title looks similar. Compare pay, benefits, status, duties, hours, location, working environment and the skills required. Then consider the employee's circumstances, including a longer journey, caring responsibilities or a change they would need to make outside work.
Suitability and reasonable refusal are related but separate questions. The same vacancy might be workable for one employee and unsuitable for another. Record the facts rather than relying on a manager's broad view that the role is “close enough”. The GOV.UK suitable-employment guidance sets out the main factors.
Make a real offer before employment ends
Offer an available vacancy before the employee's existing employment ends. The new job must start immediately after the old one ends or within four weeks. Give enough written information for the employee to assess the duties, pay, benefits, hours, location, start date and other important terms.
Check the protected period before deciding how a vacancy will be offered. Do not place a protected employee in competition with employees who do not have priority. Where protected employees must be compared with each other, explain the suitability criteria in writing and apply them fairly.
Use the trial period rather than guessing
An employee who accepts alternative employment has a four-week statutory trial. A longer trial for retraining must be agreed in writing before the trial period starts, with its terms and end date recorded.
If the employee stays in the new role beyond the four-week trial period, or beyond a valid written extension for retraining, their entitlement to statutory redundancy pay normally ends.
If the employee rejects a role because it is unsuitable, or their refusal of a suitable role is reasonable in their circumstances, they retain their redundancy-pay entitlement. If the role is suitable and the refusal is unreasonable, they may lose that entitlement. Record the offer, trial and reasons before deciding what is payable.
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