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The statutory rule

Section 138 Employment Rights Act 1996 gives every employee a 4-week trial period on an accepted alternative role in a redundancy situation. The trial starts on the first day of the new role. Key features:

  • Original contract technically remains active for statutory redundancy purposes.
  • Either side can terminate the trial.
  • Termination during trial for a role-related reason preserves redundancy pay.
  • Termination after the 4 weeks confirms the new role and extinguishes redundancy rights.

Contractual extensions

The statutory 4 weeks is a floor. Employer and employee can agree in writing to extend to a longer contractual trial period, typically 8-12 weeks. The extension must be:

  • Agreed in writing before the trial starts (or before the 4-week point).
  • Specific about start and end dates.
  • Clear on the effect of termination during the extension.

Extensions are useful where the new role requires retraining or the fit is genuinely uncertain.

How termination works

Two types of termination during trial:

  • Role-related - the role turns out unsuitable, the employee gives it a genuine try and terminates. Redundancy pay preserved.
  • Personal-choice - the employee dislikes the role for reasons unrelated to suitability. Redundancy pay may be lost as unreasonable refusal.

Tribunals apply a "genuine attempt" test - the employee must have made a fair go of the new role.

Timing arithmetic

The 4 weeks runs in calendar days from the first day in the new role. So if you start on Monday 1 September, day 28 is Sunday 28 September and the trial ends. Any decision to terminate must be communicated in writing before day 28.

Pay during trial

The employee is paid for the new role at the new rate. The old role is legally still "extant" for statutory redundancy purposes but the actual work and pay are for the new role. If the new role has lower pay, the employee is on the lower pay from day one - even if they terminate on day 27.

Interaction with notice

Notice for the original redundancy is paused during the trial. If the trial fails and the employee terminates, notice for the original dismissal restarts from the trial-termination date. Effective date of termination is calculated including the notice period.

What to do during the trial

  1. Approach the new role in good faith - a genuine attempt is required.
  2. Document the role's actual features vs the description offered.
  3. Raise any concerns with line manager in writing.
  4. Decide before day 28 whether to terminate or accept.
  5. Get the termination decision confirmed in writing.

Employer duty during trial

The employer must:

  • Provide adequate training and induction for the new role.
  • Support the employee during the trial period.
  • Consider representations if the employee raises concerns.
  • Handle termination fairly if the trial fails.

An unsupportive trial may itself justify redundancy pay preservation.

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Related guides

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Frequently asked questions

What is the trial period after redundancy?
A statutory 4-week period at the start of an accepted alternative role during which either side can terminate. If terminated for a role-related reason, the employee preserves statutory redundancy pay from the original dismissal.
Can the 4-week trial be extended?
Yes by written agreement before the trial starts or before the 4-week point. Typical contractual extensions are 8-12 weeks. The extension must specify start and end dates and termination effect.
What happens if I terminate during the trial?
For a role-related reason (genuine unsuitability after a fair attempt): redundancy pay preserved. For a personal-choice reason (dislike unrelated to suitability): redundancy pay may be lost as unreasonable refusal.
How is my pay during the trial?
You are paid for the new role at the new rate from day one. If the new role has lower pay, you are on the lower pay throughout the trial - even if you terminate on day 27.
What happens after the 4 weeks if I stay?
The new role is confirmed. Original redundancy is no longer effective. Continuous service is preserved (no P45). Statutory redundancy pay from the original dismissal is extinguished.

Sources and further reading

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