What is Suitable Alternative Employment?
When an employer is making roles redundant, they have a legal duty to consider whether there is “suitable alternative employment” available within the organisation. This means offering affected employees another job that is reasonably similar to their current role, rather than proceeding straight to redundancy. Understanding what counts as suitable alternative employment is crucial, as it can affect your entitlement to redundancy pay and your rights if you choose to refuse the offer.
What Does “Suitable Alternative Employment” Mean?
Under the Employment Rights Act 1996, suitable alternative employment is a job that is similar in terms of status, pay, location, working hours, and duties to your existing position. The new role doesn’t have to be identical, but it must be a reasonable match considering your skills and circumstances. Employers should make these offers before your current job ends, giving you enough information to make an informed decision.
Whether a job is “suitable” depends on both the nature of the new role and your personal situation. For example, a similar job at a different site may be suitable for some employees but not for others if the new location adds significant travel time or costs.
Why Do Employers Offer Alternative Roles?
Employers are encouraged by law to avoid redundancies where possible. Offering suitable alternative employment helps both parties – employers retain valuable staff and employees keep their jobs. If a suitable alternative is available and you unreasonably refuse it, you may lose your right to statutory redundancy pay. This is why it’s important to carefully assess any offer you receive.
For a broader overview of redundancy rights and the legal process, see Understanding Redundancy in UK Law: Your Rights Explained.
Examples of Suitable Alternative Employment
Some examples of what might be considered suitable alternative jobs include:
- Same or similar job title and duties: A move to a different department but with similar responsibilities and pay.
- Minor changes in terms: Slightly different working hours or a small change in location, provided these do not cause undue hardship.
- Comparable seniority and benefits: A role at the same level with similar benefits, even if the job title changes.
However, a role is less likely to be suitable if it involves a significant pay cut, much longer commute, or very different duties. The suitability of an alternative job is always judged on a case-by-case basis, taking into account both the job details and your individual circumstances.
For further official guidance, you can refer to the government’s advice on Redundancy: your rights: Suitable alternative employment – GOV.UK.
If you are concerned that the redundancy or the alternative job offer may not be genuine, you may want to read more about Challenging Sham Redundancy for additional guidance and support.
Your Legal Rights When Offered Suitable Alternative Employment
When facing redundancy, your employer has a legal duty to consider whether there is a “suitable alternative employment” role available for you within the organisation. Understanding your rights at this stage can help you make informed decisions about your future and ensure you are treated fairly throughout the process.
Your Right to Be Offered a Suitable Alternative Role
Under the Employment Rights Act 1996, if your current role is at risk of redundancy, your employer must make reasonable efforts to offer you any suitable alternative vacancies that exist. A role is generally considered “suitable” if it matches your skills and experience and is similar in terms of status, pay, location, and working conditions.
The Employer’s Duty to Consult and Explain
Your employer should consult with you about the redundancy and any alternative roles on offer. This consultation should be meaningful and give you the opportunity to ask questions and raise concerns about the new role. If you’re unsure what to discuss during this stage, see Key Redundancy Consultation Questions for Fair Treatment for practical guidance on ensuring the process is fair and transparent.
The employer should provide a clear explanation of the new role, including responsibilities, pay, hours, and any changes from your current position. They should also give you written details of the offer so you can make an informed decision.
Time Allowed to Consider the Offer
You are entitled to a reasonable period to consider any offer of suitable alternative employment. The law does not specify an exact timeframe, but typically, you should be given at least a few days – sometimes up to four weeks – especially if the new role involves significant changes. This period allows you to weigh up the pros and cons, seek advice, and discuss any adjustments you might need. If you require changes to the role due to health or personal reasons, you may also want to review your rights regarding workplace accommodations and flexible working.
Your Right to Refuse If the Role Is Not Suitable
If you believe the alternative role is not suitable – for example, if it involves a lower salary, longer commute, or responsibilities outside your skill set – you have the right to refuse the offer. In such cases, you may still be entitled to redundancy pay. However, if you unreasonably refuse a role that is deemed suitable, you could lose your right to redundancy pay.
Employers should handle any disputes or grievances about suitability fairly, in line with the Acas Code of Practice on disciplinary and grievance procedures. If you feel pressured to accept a role that isn’t right for you, or if the consultation process has not been followed properly, you may have grounds for an unfair dismissal claim.
Understanding your rights and the correct procedures can help protect your interests during redundancy. Always ask for clear information, take time to consider your options, and seek advice if needed.
What Happens if You Refuse Suitable Alternative Employment?
When you are made redundant and offered a suitable alternative job by your employer, your decision to accept or refuse that offer can have significant legal and financial consequences. Understanding what happens if you turn down suitable alternative employment is crucial to protecting your rights and ensuring you do not unintentionally lose out on redundancy pay or the ability to challenge your dismissal.
Potential Loss or Reduction of Redundancy Pay
If you refuse an offer of suitable alternative employment without a good reason, you may lose your right to statutory redundancy pay. Under the Employment Rights Act 1996, your employer can refuse to pay redundancy if they believe you have unreasonably rejected a suitable role. The law defines “suitable” by considering factors like job content, status, pay, location, and your individual skills and circumstances.
If you’re unsure about your entitlement or want to check how much redundancy pay you might be due, you can use the official Calculate your statutory redundancy pay – GOV.UK tool. For further details on eligibility and timelines, see our guide on Redundancy Pay Eligibility and Timeline.
Impact on Unfair Dismissal Claims
Refusing suitable alternative employment can also affect your ability to claim unfair dismissal. If your employer can show they offered you a reasonable alternative and you turned it down without good reason, a tribunal may decide your dismissal was fair. This could weaken your case if you later challenge your redundancy.
For a deeper understanding of your rights around dismissal and how to challenge it, read our section on Unfair Dismissal: Your Rights and How to Challenge Being Fired, particularly the part on legal grounds for fair dismissal. You can also find practical advice on building your case in How to Win Your Redundancy Case. For guidance on the process of making an unfair dismissal claim, visit Unfair dismissal – Dismissals – Acas.
Reasonable vs Unreasonable Refusal
Whether your refusal is “reasonable” is key. Common valid reasons for refusing suitable alternative employment might include:
- The new job involves significantly longer travel or relocation.
- The role is at a lower pay or status than your previous position.
- The working hours or conditions are unsuitable for your personal circumstances (e.g., childcare needs, health issues).
- The new job does not match your skills or experience.
If your reason is not considered reasonable – such as preferring not to change roles without a strong justification – you may forfeit your redundancy pay.
Importance of Giving a Valid Reason
It’s important to communicate your reasons for refusal clearly and in writing. This record can be crucial if there is a dispute. If you believe the alternative job is not genuinely suitable, explain why, referencing specific differences in duties, pay, or conditions.
If you do refuse and your employer withholds redundancy pay, you may be able to appeal or make a claim. The government provides guidance and a form for this process at Claim for redundancy and other money you’re owed by an employer – GOV.UK.
Understanding your rights and obligations at this stage can help you make informed decisions and avoid unexpected financial or legal consequences. If you’re in doubt, seek advice early and keep detailed records of all offers and your responses.
What Makes an Alternative Job ‘Suitable’?
When you are facing redundancy, your employer may offer you a different role within the organisation. Legally, this is known as “suitable alternative employment.” Whether a job is considered suitable depends on several key factors, and the details matter. Understanding what makes a role “suitable” is crucial, as it can affect your right to redundancy pay if you choose to refuse the offer.
Key Factors in Determining Suitability
Employers must consider the following when assessing if an alternative job is suitable:
- Pay: The new role should offer similar pay, including basic salary, bonuses, and benefits. If the pay is significantly lower, the job is less likely to be suitable.
- Status: The job’s level or seniority should be comparable. A significant drop in status or responsibility might make the role unsuitable.
- Location: The new workplace should be within reasonable travelling distance. A much longer or more expensive commute could be grounds for saying the job is not suitable.
- Duties: The tasks and responsibilities should be similar to your previous role. A job with very different duties or requiring new specialist skills may not be suitable.
- Hours: The working hours, including shifts, part-time/full-time status, and flexibility, should be broadly the same.
How Small Differences Can Affect Suitability
Minor changes – such as a slight adjustment in working hours or a small reduction in benefits – do not automatically make a job unsuitable. However, if several small changes add up, or if any change significantly affects your personal circumstances (for example, due to caring responsibilities or a disability), these could make the new role unsuitable.
Employers are encouraged to consult with you about any concerns and consider adjustments to make the role more suitable. If you have specific needs, you might also find it helpful to read about what to do if your request is refused or ignored.
When Is a Job Not Considered Suitable?
A job is generally not suitable if:
- The pay is significantly lower or the benefits are substantially reduced.
- The role is at a much lower level or involves a demotion.
- The location is impractical due to distance or travel time.
- The duties are very different, requiring new skills or qualifications you do not have.
- The hours are incompatible with your other commitments or health needs.
Examples of Suitable vs Unsuitable Alternative Roles
Suitable Example:
An administrative assistant is made redundant but offered a similar admin role in a different department, with the same pay, hours, and responsibilities, just in a nearby office.
Unsuitable Example:
A full-time manager is offered a part-time junior position with much lower pay and fewer responsibilities, based in a different city.
Legal Framework
Under the Employment Rights Act 1996, refusing a suitable alternative job without a good reason may mean you lose your right to statutory redundancy pay. However, if the alternative role is not suitable, or your refusal is reasonable (for example, due to personal circumstances), you may still be entitled to redundancy pay.
If you are unsure about whether an alternative role is suitable, it is best to discuss your concerns with your employer and seek advice before making a decision. This can help protect your rights and ensure you make an informed choice.
How to Respond to an Offer of Suitable Alternative Employment
When you’re offered a suitable alternative job during redundancy, how you respond can have a significant impact on your rights, including your entitlement to redundancy pay. Here’s a step-by-step guide to help you make an informed decision and communicate it clearly.
1. Review the Offer Carefully
Employers must provide details of any alternative role in writing. This should include the job title, duties, pay, location, hours, and any changes to your terms and conditions. Take time to compare the new role with your current position. Consider factors such as:
- Pay and benefits
- Hours and shift patterns
- Location and travel requirements
- Seniority and responsibilities
If the new job is substantially different or unsuitable for your situation, you may have the right to refuse without losing your redundancy pay. The law (Employment Rights Act 1996) states that the alternative must be “suitable” and your refusal must be “reasonable.”
2. Ask for More Information and Time
If anything about the offer is unclear, don’t hesitate to ask for more details in writing. You are legally entitled to a statutory trial period of four weeks in the new role, starting from the day you begin it. This trial period allows you to assess whether the job is truly suitable for you.
If you need more time to consider – perhaps due to health or family circumstances – explain this to your employer. They may grant you additional time, especially if you have a good reason. If your mental health is a concern, or you feel pressured to accept, understanding your rights at work regarding mental health can help you make a decision that protects your wellbeing.
3. Seek Advice if Unsure
If you’re uncertain whether the alternative job is suitable or what the consequences of refusal might be, consider seeking advice from a trade union, an employment solicitor, or an advice service such as Acas or Citizens Advice. They can help you understand your rights and the potential impact on your redundancy pay or future claims for unfair dismissal.
If you have a disability or health condition, you might also wish to explore what to do if your request for reasonable adjustments is refused or ignored, as this could affect your ability to perform the new role.
4. Communicate Your Decision Clearly
Once you’ve made your decision, inform your employer in writing. If you accept the role, confirm the terms and the start date. If you decide to refuse, explain your reasons clearly and keep a copy of your response. Reasonable grounds for refusal might include significant changes to pay, hours, location, or personal circumstances.
Remember, if you refuse an offer of suitable alternative employment without a good reason, you may lose your right to redundancy pay. However, if the offer is unsuitable or your refusal is reasonable, you should still be entitled to redundancy pay.
If you do lose your job and are not eligible for redundancy pay, you might want to explore claiming benefits after being sacked to understand your options for financial support.
Taking these steps ensures you protect your rights and make the best decision for your circumstances.
Additional Considerations
When considering whether to refuse a suitable alternative role during redundancy, there are several additional factors that could affect your rights and outcomes. Understanding these can help you make an informed decision and avoid potential pitfalls.
Collective Redundancies and Alternative Employment
If your employer is making 20 or more employees redundant within a 90-day period, this is known as a collective redundancy. In these cases, employers have extra legal obligations, such as consulting with employee representatives and exploring ways to avoid redundancies, including offering suitable alternative employment. Refusing a suitable offer in a collective redundancy situation can result in the loss of your statutory redundancy pay, just as in individual cases. However, the consultation process may give you more information about why certain roles are being offered and whether they genuinely suit your skills and experience. For more on your rights during large-scale redundancies, see our guide on Collective Redundancies.
Restructuring and the Nature of Alternative Roles
Employers often restructure their business to adapt to changing needs, which can lead to the creation of new roles or changes to existing ones. If you are offered an alternative position as a result of restructuring, it must still be a ‘suitable’ alternative in terms of pay, status, location, and working conditions. If you are unsure whether the new role qualifies as suitable, consider how closely it matches your previous job and whether it reflects your skills and contractual terms. For more on how restructuring affects redundancy and alternative employment offers, see the Employer Guide to Making Positions Redundant by Restructuring.
Risks of Sham Redundancy
Sometimes, employers may use redundancy as a pretext to dismiss staff for other reasons or to force employees into less favourable roles. This is known as a sham redundancy. If you believe your redundancy is not genuine, or that the alternative role is deliberately unsuitable, you may have grounds to challenge your employer. Learn more about the warning signs and your rights in our dedicated section on Sham Redundancy. For further guidance on challenging unfair practices, see Challenging Sham Redundancy.
Being Off Sick During Your Redundancy Notice
If you are off sick during your redundancy notice period, your rights to redundancy pay and suitable alternative employment remain protected. You should still be consulted about any alternative roles and given a fair opportunity to consider them. Refusing a suitable alternative job offer while off sick carries the same consequences as refusing while at work – you may lose your right to redundancy pay unless you have a valid reason. For specific advice and examples, visit our page: Off Sick During Redundancy Notice?.
Understanding these additional considerations can help you navigate the redundancy process more confidently and ensure your rights are respected at every stage.
