Suitable Alternative Employment Explained

When an employee faces redundancy in England and Wales, employers are often required to consider offering suitable alternative employment before terminating the employee's contract. This legal obligation is a key part of a fair redundancy process under the Employment Rights Act 1996 and related guidance. Suitable alternative employment can help avoid dismissal, protect jobs, and reduce the risk of tribunal claims for unfair dismissal or wrongful redundancy. This article explains what suitable alternative employment is, when it must be offered, how suitability is assessed, the rights and obligations of employees and employers, trial periods, and how disputes may be resolved. (All statutory references and guidance are drawn from current government and advisory sources.)

What Is Suitable Alternative Employment?

Suitable alternative employment refers to a different role offered to an employee who is at risk of redundancy, where that role is considered appropriate for the employee's skills, experience and circumstances. The purpose is to avoid dismissal where there is work available that could reasonably be offered instead of making an employee redundant. An employer must not simply require the employee to apply for jobs - the offer should be made directly and before the current contract ends.

An employer's duty to consider and offer suitable alternative employment forms part of the legal and procedural fairness expected in a redundancy process. Failure to do so can make a redundancy dismissal unfair and expose the employer to tribunal claims.

When Must an Employer Offer Suitable Alternative Employment?

An employer's duty to offer suitable alternative work arises during a redundancy exercise where:

• There are vacancies within the organisation (or group) that could be suitable;
• The employee is an employee with qualifying service and legal status (not merely a casual worker or agency worker); and
• The role has been identified before the current post ends.

Employers should work proactively during redundancy consultation to identify and consider available jobs, discuss them with affected employees, and reasonably decide if they are suitable. Doing so may help avoid dismissals and demonstrate a fair process.

Special legal protections apply for employees on or returning from maternity, adoption or certain shared parental leave. In these cases, the obligation to offer suitable alternative vacancies is stronger and may take priority over other employees.

Assessing Suitability of Alternative Employment

Determining whether a job is suitable depends on both objective and subjective factors.

Objective Criteria

Suitability is first assessed against objective factors including:

• Pay and benefits: Does the new role offer comparable or acceptable remuneration and terms?
• Location and travel: Is the workplace reasonably accessible?
• Duties and responsibilities: Are the job duties broadly similar or aligned with the employee's skills?
• Hours and working conditions: Are hours and conditions reasonable relative to the employee's current role?

Subjective Considerations

Even if objectively similar, factors personal to the employee may mean the role is unsuitable for them. For example:

• A longer or costlier commute;
• Health limitations preventing safe performance of duties;
• Family or caring responsibilities that make the job impractical;
• Material changes to status or autonomy that are significant for the individual.

Case law confirms that what is “reasonable” for one employee may not be the same for another. In employment appeals, tribunals have accepted that personal concerns may justify refusing an offer, provided they are genuinely and reasonably held.

Trial Periods for Alternative Employment

Where an offer of suitable alternative employment is made, employees have a statutory trial period of four weeks to determine whether the new role genuinely suits them without losing redundancy rights.

Key points about trial periods:

• A trial period normally begins after the original employment ends (following the notice period).
• If the role is unsuitable and the employee leaves within this trial period, they retain entitlement to statutory redundancy pay.
• The trial period may be extended by agreement, provided this is clearly documented in writing.
• If more than one suitable job is offered, separate trial periods can be agreed for each role.

Employers are encouraged to set out trial period details in writing, including start and end dates, to avoid disputes.

Effects of Refusing or Rejecting an Offer

Reasonable Refusal

If an employee refuses an offer of suitable alternative employment for good and reasonable reasons, they retain their right to statutory redundancy pay. Valid reasons can include:

• Lower pay or less favourable terms;
• Health or safety concerns;
• Excessive travel burdens;
• Significant changes in job duties or status.

Unreasonable Refusal

If the employee unreasonably refuses a genuinely suitable offer, they may forfeit their statutory redundancy pay. Employers may contest refusal at an employment tribunal, and the tribunal will assess whether the employee's reasons were reasonable in all the circumstances.

Whether a refusal is reasonable is a subjective and case‑specific judgment. Employers bear the burden of showing the role was suitable and the employee unreasonably declined it.

Practical Considerations for Employers

Written Offers

Offers of suitable alternative employment should be made in writing, setting out key terms and how the new role compares to the current one. This helps avoid misunderstandings and supports procedural fairness.

Consultation and Fair Process

Identification and communication of alternative roles should form part of the formal redundancy consultation process. Failing to explore alternatives or rushing to dismiss without considering vacancies can make a redundancy dismissal unfair under employment law.

Priority Rights

Certain employees with protected parental status may have a priority right to be offered alternative roles without needing to compete with other candidates. Employers should understand and apply these rights to avoid discrimination claims.

Disputes and Employment Tribunals

Employees who believe they have been wrongly denied suitable alternative employment or unfairly dismissed can bring claims to an employment tribunal. Grounds for claims include:

• Unfair dismissal due to failure to offer suitable alternatives;
• Unlawful redundancy if the process was flawed;
• Loss of redundancy pay where a reasonable offer was refused without good reason.

Time limits for tribunal claims are strict. Typically, a claim must be presented within three months minus one day from the dismissal date. Employees often seek assistance from Acas or legal advisers before submitting claims.

Common Questions

Do I have to accept a suitable alternative job?
No. You can refuse, but refusal should be reasonable to preserve your statutory redundancy pay.

Does alternative work have to be identical to my old job?
Not necessarily. It must be suitable considering pay, duties, location and personal circumstances.

What happens if no suitable alternative is available?
If there is no suitable role, the employer may proceed with redundancy, and you remain entitled to statutory redundancy pay if eligible.

Can the employer change terms in the new role during the trial?
Any significant changes should be agreed in writing. Otherwise, disputes may arise about suitability.

Key Takeaways

Suitable alternative employment is a legal mechanism in redundancy processes that allows employers to offer existing or new roles to at‑risk employees to avert dismissal. Employers must identify and offer suitable roles before termination, consider objective and subjective factors in assessing suitability, and allow a statutory trial period without risking redundancy pay. Employees may refuse roles, but unreasonable refusal can lead to loss of redundancy pay. Failing to offer suitable alternatives can render a redundancy dismissal unfair. Employment tribunals provide a forum for resolving disputes involving suitability, reasonableness and rights to redundancy compensation. Clear communication, written offers and attention to statutory consultation and trial rights help minimise legal risk and support fair treatment throughout the redundancy process.