✅ Suitable Alternative Employment During Redundancy: How to Get It Right (and What Not to Do)

✅ Suitable Alternative Employment During Redundancy: How to Get It Right (and What Not to Do)

When employers make redundancies, there’s a legal requirement to explore suitable alternative employment (SAE) for affected staff. Getting this wrong isn’t just a missed opportunity to retain talent—it can expose your business to costly unfair dismissal claims.

A recent case reported by Business Matters magazine highlights exactly how employers can fall foul of this process. Below, we explain what went wrong—and how to ensure your redundancy process is both legally compliant and ethically sound.

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⚠️ A Redundancy Gone Wrong: Lessons from Business Matters

In the featured case, an employer made a long-serving senior employee redundant without properly considering suitable alternative roles. Although the employer claimed to have offered another position, it was later revealed the offer was informal, lacking detail, and not clearly communicated.

The tribunal found that:

• The employee was not given enough information to assess whether the new role was genuinely suitable.

• There was no written offer, and the employee was expected to apply like any external candidate.

• The employer failed to engage in meaningful consultation.

• As a result, the redundancy was deemed procedurally unfair.

This case shows that even when the business rationale is sound, skipping the proper SAE process can render the redundancy legally unsafe.

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✅ What Is Suitable Alternative Employment?

Suitable alternative employment refers to any available vacancy within your organisation (or group) that may be appropriate for someone at risk of redundancy. A role may be suitable even if:

• It’s at a lower grade or salary

• It’s in a different department or location

• The duties are different but within the employee’s capability

Employees are entitled to a 4-week trial period in any SAE role to determine if it’s a good fit. If they refuse an offer unreasonably, they may forfeit their right to redundancy pay.

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✅ How to Implement SAE Correctly

To avoid the mistakes in the Business Matters case, employers should follow these steps:

1. Search for Vacancies Early

Start identifying suitable roles across departments or group companies as soon as redundancy is a possibility. Keep an up-to-date vacancy list and share this proactively.

2. Provide Clear Role Information

When offering a role:

• Describe duties, pay, location, hours, and grade

• Put the offer in writing

• Make the offer before the end of the current contract

• Clearly outline the trial period terms

3. Don’t Rely on Passive Communication

Telling employees to “check the jobs board” isn’t enough. Employers must engage directly, discuss available roles, and explain why each one may (or may not) be suitable.

4. Use a Fair Selection Process

If more than one employee is eligible for a vacancy, selection must be based on objective criteria, such as:

• Performance scores

• Skills and qualifications

• Attendance and disciplinary history

✅ Need help with objective scoring? Download our legally compliant redundancy selection matrix, which ensures fairness and consistency when selecting for redundancy or redeployment.

5. Handle Refusals Properly

If an employee refuses an SAE offer, consider whether:

• The refusal was reasonable (e.g. location, pay drop, unsuitable duties)

• The role truly matched their experience and capability

You must document this assessment carefully to avoid disputes.

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🚫 Avoiding the Mistakes from the Case

Here’s how to avoid the failings seen in the Business Matters article:

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🧾 Legal Summary

The legal duty to offer suitable alternative employment comes from the Employment Rights Act 1996. If you fail to offer an available suitable role to an employee at risk of redundancy, their dismissal may be deemed unfair, and they may be entitled to compensation.

Special rules apply to:

• Pregnant employees

• Staff on maternity, adoption or shared parental leave
  These individuals have priority access to suitable roles and must be offered them before others.

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✅ Final Thoughts

Suitable alternative employment is often seen as an afterthought—but it should be a core part of your redundancy strategy. When managed well, it reduces legal risk, protects employee wellbeing, and can preserve key skills within your business.

The Business Matters case is a clear warning: don’t cut corners. Formal offers, documentation, and structured consultation are essential.

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📥 Download: Redundancy Selection Matrix

Want to ensure your selection process and SAE handling are fully compliant?

👉 Download our Redundancy Selection Matrix, designed to help you:

• Score employees using fair, objective criteria (skills, performance, attendance)

• Ensure transparency and documentation

• Support consistent redeployment decisions

Take the stress out of redundancies and protect your organisation from costly errors.
Download the matrix now