Who Qualifies for Alternative Employment Offers After Redundancy?

When an employer makes roles redundant, they are often required to consider whether affected employees can be offered alternative employment within the organisation or an associated business. This process is a key part of fair redundancy handling under UK employment law and can directly affect entitlement to redundancy pay and the fairness of dismissal.

Alternative employment offers are commonly used to avoid dismissals, reduce redundancy costs, and support workforce restructuring. However, eligibility is not automatic and depends on statutory rules, contractual terms, and the suitability of available roles.

This article explains who qualifies for alternative employment offers after redundancy, how the process works, and the legal consequences of accepting or refusing alternative roles in England and Wales.

What Is Alternative Employment in Redundancy?

Alternative employment refers to a suitable available role offered to an employee who is at risk of redundancy or has been selected for redundancy.

Under redundancy law, employers are expected to explore ways to avoid dismissal, including:

• Redeployment into existing vacancies
• Offering roles in other departments or locations
• Adjusting roles to match employee skills where possible

This obligation is linked to the requirement that a redundancy dismissal must be fair under the Employment Rights Act 1996.

Who Qualifies for Alternative Employment Offers?

1. Employees at risk of redundancy

Employees whose roles are at risk during a redundancy process are the primary group entitled to be considered for alternative employment.

This includes employees:

• Whose job role is disappearing
• Whose department is being restructured
• Who are part of a redundancy selection pool
• Whose position is downgraded or significantly changed

Employers are expected to actively consider redeployment before final dismissal decisions are made.

2. Employees with at least 2 years' service (priority redeployment rights)

Employees with 2 or more years of continuous service at the date of redundancy have stronger legal protections in relation to unfair dismissal claims.

While there is no absolute statutory “priority list” for redeployment, in practice:

• Longer-serving employees are more likely to be considered for suitable vacancies
• Employers must apply selection and redeployment processes fairly and consistently

Failure to properly consider redeployment may contribute to an unfair dismissal finding in an employment tribunal.

3. Employees during the statutory trial period

Where an employee accepts alternative employment, they are entitled to a statutory trial period of 4 weeks (or longer if agreed in writing) under redundancy law.

This applies where:

• The new role differs significantly from the previous one
• The employee is trialling the suitability of the role

If the role proves unsuitable during the trial period, the employee may still retain entitlement to redundancy pay.

4. Employees in suitable available roles within the organisation

Employees may qualify for alternative employment if there is a:

• Vacant role within the organisation
• Role requiring similar skills or experience
• Position at a comparable grade or salary level

Employers must consider whether a role is “suitable alternative employment”, taking into account:

• Job duties
• Pay and benefits
• Location and travel requirements
• Working hours and conditions
• Skills and experience match

Suitability is assessed objectively, but employee circumstances may also be relevant.

5. Employees in associated companies (group redundancies)

In larger organisations or corporate groups, alternative employment may extend to:

• Subsidiary companies
• Group affiliates
• Shared service entities

Employers are expected to consider vacancies across the wider organisation where appropriate, particularly in large-scale redundancies.

6. Employees offered voluntary redeployment schemes

Some employers run redeployment schemes alongside redundancy processes. Employees may qualify for alternative roles through:

• Internal vacancy pools
• “Ring-fenced” recruitment processes
• Priority interview schemes

These arrangements are often part of redundancy avoidance strategies and consultation agreements.

Who Does Not Automatically Qualify?

Employees may not be entitled to alternative employment offers where:

• No suitable vacancies exist
• The employee lacks essential skills for available roles
• The employee refuses reasonable redeployment opportunities
• The employment relationship ends due to misconduct rather than redundancy
• The role offered is clearly unsuitable in terms of pay, status, or conditions (subject to legal interpretation)

However, employers must still demonstrate that reasonable consideration was given to redeployment.

What Counts as “Suitable Alternative Employment”?

The law does not provide a fixed definition, but tribunals typically assess suitability based on:

• Job content and responsibilities
• Pay level and contractual benefits
• Status and seniority
• Working location and travel impact
• Working hours and shift patterns
• Required skills and training needs

A role does not need to be identical, but it must be reasonable in the circumstances.

Refusing Alternative Employment

Effect on redundancy pay

If an employee unreasonably refuses a suitable alternative role, they may lose entitlement to statutory redundancy pay.

However:

• Refusal must be assessed objectively
• Personal circumstances may be relevant
• The offer must genuinely be suitable

If the role is not suitable, refusal will not normally affect redundancy entitlement.

Common reasons for reasonable refusal

Refusal may be considered reasonable where:

• The role involves significantly lower pay or status
• The location causes unreasonable travel disruption
• Working hours are substantially different
• Skills mismatch would require unreasonable retraining
• The employee has health or disability-related constraints

Legal Duties on Employers

Employers must take reasonable steps to identify alternative employment, including:

• Reviewing internal vacancies
• Considering redeployment before dismissal
• Consulting with employees during redundancy
• Offering trial periods where appropriate

Failure to do so may contribute to:

• Unfair dismissal claims (for eligible employees)
• Tribunal scrutiny of redundancy fairness
• Increased compensation liability

Trial Period and Its Legal Importance

The statutory trial period allows employees to test alternative roles without losing redundancy rights immediately.

Key points include:

• Standard duration: 4 weeks
• Begins when employee starts new role
• Can be extended by written agreement for training purposes
• If unsuccessful, redundancy rights may be preserved

This mechanism is designed to encourage redeployment while protecting employees from unsuitable placements.

Interaction with Consultation Rights

Alternative employment must be considered during redundancy consultation. Employers are expected to:

• Discuss available vacancies
• Explain selection criteria
• Explore redeployment options
• Allow employee input on suitability

Failure to address alternative employment during consultation may render the process procedurally unfair.

Time Limits for Claims

If disputes arise regarding refusal of alternative employment or unfair dismissal, time limits generally include:

• 3 months less one day for unfair dismissal claims
• Mandatory ACAS early conciliation before tribunal proceedings

Strict deadlines apply, and late claims are rarely accepted.

Common Misunderstandings

“Employers must find another job”

Incorrect. Employers must consider alternatives, but there is no absolute obligation to create new roles.

“Any job offered must be accepted”

Incorrect. Only suitable alternative employment must be accepted to preserve redundancy pay rights.

“Redeployment guarantees job security”

Incorrect. Alternative employment may still be subject to probation, performance review, or further restructuring.

Key Takeaways

Employees affected by redundancy may qualify for alternative employment offers if suitable vacancies exist and they are part of the redundancy process. Employers are legally required to consider redeployment as part of fair dismissal procedures, but there is no obligation to create new roles. Suitability is assessed based on job content, pay, location, and skills. Refusing suitable alternative employment may affect redundancy pay entitlement, while acceptance may include a statutory trial period.