How much do you know about redundancy and alternative employment?

Watch our video to learn about a case study involving an employee selected for redundancy, and why accepting or rejecting an alternative role can affect redundancy entitlement.

If you have any concerns about redundancy or need some advice, please feel free to reach out to us.

The Problem

We were contacted by an employee who had been dismissed after being selected for redundancy. They believed they should have received a redundancy payment.

The employee had worked for a medium-sized local business for 9 years and was part of a team of six employees carrying out similar roles with similar levels of responsibility.

Where it went wrong

The company invited everyone in the team to a consultation meeting, where they explained the proposed restructure and the reasons behind it.

At a subsequent meeting, employees were told that selection for redundancy would be based on specific criteria and a scoring matrix.

The employee received the lowest score and was selected for redundancy.

However, rather than simply proceeding with the redundancy, the company offered the employee an alternative role within the business. The role was very similar but was in a different team.

The company also offered the employee the opportunity to take the role on a trial basis, but the employee declined the offer.

Things that were missed

The employee believed that they were entitled to a redundancy payment.

However, where an employee who might otherwise be made redundant refuses a reasonable offer of the same or similar suitable employment starting within 4 weeks of the date of termination, they may not be entitled to a redundancy payment.

Where the alternative role differs in capacity or place, or the terms and conditions differ wholly or in part, the legislation provides for a trial period. If the role does not work out during the trial period, redundancy payments may still be due.

The Result

We reviewed the information provided by the employee and advised them on the legislation relating to redundancy.

Unfortunately, because the employee chose not to accept the alternative role offered, they were not eligible for a redundancy payment.

No further action was taken, as the company had followed the relevant rules.

Watch the Reel to hear the story and learn more about redundancy and alternative employment.