UK · Redundancy

Suitable alternative employment

UK employers must search for and offer suitable alternative employment before dismissing an employee for redundancy. Refusal of a genuinely suitable role without a reasonable ground forfeits statutory redundancy pay. Employees have a statutory 4-week trial period on any accepted alternative.

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The employer duty

Before dismissing for redundancy, the employer must consider whether there is suitable alternative employment. The duty extends to:

  • Other roles within the same establishment.
  • Roles at other sites within reasonable commuting distance.
  • Roles within group companies where practicable.
  • Roles suitable for the employee's skills, seniority and personal circumstances.

Failure to consider or offer a suitable alternative usually makes any subsequent dismissal unfair.

What "suitable" means

Suitability is objective (does the role match on paper?) and subjective (is it reasonable for this specific employee to accept?). Factors:

  • Job content and responsibilities.
  • Pay and benefits.
  • Seniority and status.
  • Location (commute time and cost).
  • Working hours and pattern.
  • Personal circumstances (family, health, career direction).

The 4-week statutory trial period

Section 138 Employment Rights Act 1996 gives every employee a statutory 4-week trial period on an accepted alternative role. During the trial:

  • Original contract remains technically active for statutory redundancy purposes.
  • Either side can terminate the trial by notice.
  • Termination during trial for a role-related reason preserves redundancy pay.
  • Termination after the 4 weeks = confirmation of the new role, redundancy rights extinguished.

Contractual trial periods can extend the 4-week statutory floor (typically 12 weeks).

Refusal consequences

Refusing a suitable alternative without a reasonable ground forfeits statutory redundancy pay. Common reasonable grounds for refusal:

  • Materially longer commute.
  • Lower pay or benefits.
  • Significant loss of status or responsibility.
  • Family or caring responsibilities affected.
  • Health considerations.
  • Different working pattern (shift, weekend, on-call).

Refusal on a whim or without stating reasons rarely qualifies.

Maternity priority

Under Regulation 10 Maternity and Parental Leave Regulations 1999 (as amended by the Protection from Redundancy (Pregnancy and Family Leave) Act 2023), employees on maternity leave (and during pregnancy and for 18 months after birth) have priority right to any suitable alternative role. The employer must offer the vacancy to them ahead of other affected staff.

Employer best practice

  1. Audit all current vacancies at consultation stage.
  2. Consider bumping (moving another employee out of a role to make space for the redundancy employee).
  3. Share the vacancy list with affected employees.
  4. Offer trial periods on borderline-suitable roles.
  5. Support with retraining where the new role requires different skills.
  6. Document each consideration and offer.

Bumping

Bumping is where the employer moves another employee out of a role to create space for a redundancy candidate. Not required by law but often good practice for skilled redundancy candidates. The bumped employee is then considered for redundancy in their place.

Employee remedies

Employees who believe the employer failed to consider or offer suitable alternative employment can:

  • Raise it during consultation and any appeal.
  • Bring an unfair dismissal claim (2 years service required).
  • Bring a claim for the redundancy pay if forfeited on wrongful "unsuitable" grounds.

Tribunal claim within 3 months less one day of the effective date of termination.

Useful calculators

Related guides

Authority pages

Frequently asked questions

What is suitable alternative employment?
A role within the employer or its group that is objectively similar in content, pay, seniority and location, and subjectively reasonable for the specific employee to accept given personal circumstances.
What is the 4-week trial period?
A statutory right under section 138 ERA. Every employee gets a 4-week trial on any accepted alternative role. Termination during the trial for a role-related reason preserves redundancy pay.
What happens if I refuse a suitable alternative?
You lose statutory redundancy pay unless the refusal is on reasonable grounds - materially longer commute, lower pay, loss of status, family or health considerations.
Do maternity leave employees get priority?
Yes under Regulation 10 Maternity and Parental Leave Regulations 1999 (extended by the 2023 Act). Employees during pregnancy, maternity leave and for 18 months after birth have priority right to suitable alternatives.
What is bumping?
Moving another employee out of a role to create space for a redundancy candidate. Not required by law but often good practice. The bumped employee is then considered for redundancy in their place.

Sources and further reading

General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.