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Do notice and redundancy rights still apply?
Yes, they can do, but it depends on the circumstances. If an employee is offered another role in the business, that offer does not automatically remove their right to notice or redundancy pay.
The key issue is whether the new job is genuinely suitable and whether the employee accepts it. If the role is suitable and the employee unreasonably refuses it, they may lose their redundancy entitlement.
What counts as a suitable alternative role?
A suitable alternative job is one that is similar in status, pay, skills, and working conditions to the old role. It should also be offered without a major break in employment.
There is no strict legal formula, so the facts matter. A lower salary, worse hours, or a much longer commute may make the role unsuitable, depending on the employee’s situation.
The four-week trial period
When an employee accepts an alternative role after redundancy, they usually have a four-week trial period. This gives both sides a chance to see whether the new role really works.
If the employee decides the role is unsuitable during that trial, they may still keep their redundancy rights. The same applies if the employer later concludes that the new arrangement is not working.
When redundancy pay may be lost
An employee can lose the right to redundancy pay if they refuse an offer of suitable alternative employment without a good reason. The employer must show that the role was genuinely suitable and that the refusal was unreasonable.
If the employee turns down the job because it is too different, lower paid, or otherwise unsuitable, they may still be entitled to redundancy pay. Each case will depend on the evidence and the employee’s personal circumstances.
What about notice pay?
Notice pay is separate from redundancy pay. Even where an employee is offered another job, they are still entitled to their contractual or statutory notice unless they agree to move into the new role straight away.
Sometimes the employer will give notice of redundancy and at the same time offer the new role. In that situation, the employee may work through notice, or there may be a brief gap before the new contract starts.
Practical points for employers and employees
Employers should make any alternative offer clear in writing and explain why the role is considered suitable. It is also sensible to set out the start date, pay, location, hours, and any changes to terms.
Employees should not assume that accepting a new role means giving up all redundancy rights. If the job is not a realistic match, they should raise concerns promptly and get advice before deciding.
Frequently Asked Questions
Notice and redundancy rights offered another job in the business usually means the employee may be entitled to notice pay and, depending on the circumstances, a statutory redundancy payment unless the alternative role is suitable and the offer is accepted.
Eligibility generally depends on having the required period of continuous service, being dismissed for redundancy, and whether the offered job in the business is genuinely suitable and accepted or refused for a valid reason.
These rights typically apply once the employer is proposing redundancy and offers another role in the business before the termination date, especially during consultation and before the redundancy notice takes effect.
Suitable alternative employment is a role that is appropriate in terms of skills, status, pay, location, hours, and working conditions, taking into account the employee's circumstances and the reasonableness of the offer.
Yes, if the alternative role is considered suitable and the employee unreasonably refuses it, the employee may lose the right to a redundancy payment, although notice rights may still depend on the facts and the contract.
Yes, many employees have a statutory trial period in the alternative role, usually four weeks, to determine whether notice and redundancy rights offered another job in the business should continue if the job is not suitable.
The usual statutory trial period is four weeks from the date the new job starts, although it can be extended by written agreement if additional training is needed.
If the role proves unsuitable during the trial period, the employee can usually treat the employment as ended by redundancy and may remain entitled to redundancy pay and notice rights.
No, the new job does not have to pay exactly the same, but a substantial reduction in pay may make the offer unsuitable, especially if the difference is significant and unreasonable.
Yes, but if the new role is a significant step down in responsibility, status, or duties, it may not be a suitable alternative, depending on the employee's circumstances and the overall package.
If redundancy is confirmed, the employee should receive the contractual or statutory notice period unless employment continues in the alternative role or the parties agree otherwise.
Yes, a role that requires a longer commute or relocation may be unsuitable if the new location causes unreasonable inconvenience, extra costs, or disruption for the employee.
They can apply if the employee meets the qualifying conditions and is dismissed by reason of redundancy, though the details may differ depending on contract type and the offered alternative job.
The employer should clearly explain the job title, duties, pay, hours, location, start date, trial period, and whether the offer is intended to count as suitable alternative employment.
The employee should consider whether the role is suitable, whether it affects pay or status, whether the location and hours are manageable, and whether the offer preserves or affects redundancy rights.
Yes, employees can try to negotiate pay, hours, duties, location, or a trial arrangement, and employers may agree if the changes still meet business needs.
Helpful evidence includes the written job offer, consultation notes, comparison of old and new roles, pay and location details, correspondence about the trial period, and any reasons for refusal.
Yes, an immediate start can affect how notice is handled and whether the old role ends by redundancy or continues seamlessly into the new job, so the timing should be set out clearly in writing.
Possible outcomes include a redundancy payment, notice pay, claims for unfair dismissal or wrongful dismissal, and disputes over whether the alternative role was truly suitable.
An employee should ask for the offer in writing, compare the roles carefully, raise concerns promptly, keep records of consultation discussions, and seek advice before refusing or accepting the alternative job.
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