This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Comprehensive guide to what happens if you refuse alternative employment in redundancy in England and Wales, explaining reasonable versus unreasonable refusal, suitability tests, trial periods, impact on statutory redundancy pay, and dispute resolution options.
When an employer offers an employee alternative employment to avoid redundancy, the way the employee responds can affect their legal rights - particularly entitlement to statutory redundancy pay. The law recognises that not all job offers are suitable for every employee, but it also protects employers where a genuinely appropriate offer is turned down without good reason. This article explains the legal framework in England and Wales, how refusal works, factors that determine reasonableness, trial periods, and what remedies are available if disputes arise.
Introduction to Alternative Employment in Redundancy
During a redundancy process, employers have a duty to consider whether there is suitable alternative employment within the organisation or associated companies that an affected employee could reasonably be offered. If a suitable role exists, the employer must communicate the offer before the employee's existing position ends.
An offer may help avoid dismissal, but an employee is not required to accept an alternative role if they genuinely believe it is unsuitable. Whether refusal affects redundancy rights depends on whether the refusal was reasonable.
Legal Basis for Alternative Employment Offers
Under section 141 of the Employment Rights Act 1996, alternative employment must be offered and considered before redundancy takes effect. If the employer fails to offer suitable alternative employment where it is available, the redundancy may be considered unfair.
The legal tests applied involve two distinct but linked inquiries:
- Is the alternative job “suitable” for the employee? - an objective assessment of job content, pay, terms, location, hours and how these align with the employee's skills and circumstances.
- Is the employee's refusal of that job “reasonable”? - a subjective test that depends on the employee's legitimate reasons for refusing.
If a job is objectively suitable and an employee refuses it without a good reason, the employee forfeits their right to statutory redundancy pay.
Suitability and the Reasonableness of Refusal
What Makes a Job “Suitable”?
A job is considered suitable alternative employment if it is appropriate in relation to:
- Pay and benefits - broadly comparable to the employee's existing role.
- Terms and conditions - similar working arrangements and contractual protections.
- Location and travel - reasonable travel expectations for the individual.
- Duties and responsibilities - consistent with the employee's skills and experience.
Suitability is judged objectively but is also assessed in light of the individual's circumstances. What is reasonable for one employee may not be for another.
What Counts as a Reasonable Refusal?
An employee may refuse an offer on reasonable grounds. Commonly accepted reasons include:
- Significant reduction in pay or benefits relative to the original job.
- Health or disability issues that make the new work unsuitable.
- Distance or cost of travel that imposes a substantial burden.
- Incompatibility with family or caring responsibilities.
- Lack of the necessary skills or training for the new role.
If an employee communicates valid reasons for refusal before their current job ends, and the employer agrees the role is unsuitable, the employee is typically entitled to redundancy pay.
What Is Unreasonable Refusal?
If an employee refuses a job that is genuinely suitable and without legitimate reason, the employer may lawfully withhold statutory redundancy pay. Employers bear the burden of proving both that the job was suitable and the refusal was unreasonable, which often involves objective and subjective assessments.
Examples of unreasonable refusal might include turning down a job on trivial personal preferences, claiming unsuitability without supporting reasons, or rejecting a role that is substantially equivalent to the previous position.
Trial Periods in Alternative Employment
If the alternative employment involves changes to the employee's terms and conditions (for example, different location, hours or duties), a statutory four‑week trial period applies. During this period:
- The employee can assess the new role without losing redundancy rights if they leave during the trial due to unsuitability.
- If the employee remains in the job past four weeks (or an agreed longer trial), they are generally treated as having accepted the role and will lose statutory redundancy pay.
- Employers and employees can agree to extend the trial period in writing, usually to accommodate training.
Trial periods start after the employee's notice period ends and the original job contract terminates.
Process and Timing
Making and Communicating the Offer
To affect redundancy entitlement, the alternative job must be offered before the employee's existing job ends and the new role must start within four weeks of that termination. Offers can be made in writing or in clear documented communication, but written offers are strongly advised to avoid disputes.
Refusing in Writing
Employees should communicate refusal in writing and ideally state reasons. If they do not do so before their current role ends, or before the expiry of the trial period, they risk losing their right to statutory redundancy pay.
Disputes and Remedies
If an employer refuses to pay statutory redundancy on the basis that a refusal was unreasonable, employees can pursue remedies:
- Raise a grievance with the employer to seek resolution.
- Early conciliation with Acas to explore settlement or agreement.
- Employment tribunal claims for redundancy pay or unfair dismissal if the process was flawed.
Tribunal claims generally must be brought within three months minus one day of the dismissal date. Timely advice and documentation help protect rights.
Practical Examples
Example 1 - Reasonable Refusal:
An employee offered a role with significantly lower pay and much longer commute refuses the offer with written reasons before their job ends. Because the reasons relate to pay and personal circumstances, the refusal is likely to be considered reasonable, and redundancy pay remains payable.
Example 2 - Unreasonable Refusal:
An employee rejects an alternative role with similar pay, terms and location without providing a legitimate reason. The employer may argue the refusal was unreasonable and refuse statutory redundancy pay. The matter could be resolved at a tribunal if challenged.
Common Questions
Can I refuse alternative employment and still get redundancy pay?
Yes, if you have good and reasonable reasons for refusing the offer and you notify your employer before your current job ends or within the trial period.
What counts as a good reason?
Valid reasons include lower pay, unsuitable duties, health issues, impractical commute or incompatibility with personal circumstances.
What happens if I stay in the alternative job past the trial period?
If you continue past the statutory four‑week trial without agreement to extend, you lose entitlement to statutory redundancy pay because you are treated as having accepted the new role.
What if the employer and I disagree on suitability?
If you and your employer cannot agree, the employer may refuse redundancy pay and you may pursue resolution through grievance, Acas conciliation, or ultimately an employment tribunal.
Key Takeaways
Refusing alternative employment in a redundancy situation has clear legal consequences in England and Wales. Employees are entitled to decline offers they reasonably consider unsuitable and still receive statutory redundancy pay if they explain and document their refusal in good time. If an offer is objectively suitable and the refusal is unreasonable, the employee may forfeit statutory redundancy pay. Trial periods allow employees to test new roles without losing rights, and disputes can be resolved through grievance procedures, Acas conciliation, or employment tribunals if necessary. Understanding how suitability and reasonableness are assessed helps employees make informed decisions and protects both parties' rights in redundancy processes.
