Managing Suitable Alternative Employment: A Legal Guide for Employers in the UK

Redundancy and restructures are turbulent times for both businesses and employees. If you’re an employer managing change, it’s not just about making tough decisions - it’s about handling them lawfully, fairly, and in a way that protects your business from risk. That’s where “suitable alternative employment” comes in. But what exactly counts as suitable, what are your legal duties, and how can you get it right (without running into costly tribunal claims)?

Whether you’re planning a reorganisation, facing reduced demand, or changing business direction - offering suitable alternative employment can mean the difference between a smooth transition and an employment law headache. Let’s break down everything you need to know to comply with the law, treat your team fairly, and safeguard your business.

Keep reading to find out how to navigate suitable alternative employment in the UK.

What Is Suitable Alternative Employment?

If you’re making roles redundant, UK employment law requires you to consider whether you can offer impacted employees other jobs within your business (or group). This is known as suitable alternative employment.

The goal is twofold: help employees avoid unnecessary job loss, and ensure the business meets its legal obligations during redundancy processes.

Suitable alternative employment is a critical piece of the redundancy puzzle, so understanding it is essential if you want to avoid disputes, claims of unfair dismissal, or reputational harm.

But what does “suitable” actually mean in practice? Let’s explore the details.

When Do You Need To Offer Suitable Alternative Employment?

You must consider (and, where appropriate, offer) suitable alternative employment if you plan to make positions redundant - whether it’s a business restructure, site closure, merger, or just a reduction in headcount.

• Legal requirement: Under the Employment Rights Act 1996, employers are obliged to look for reasonable ways to avoid redundancy, which includes exploring available alternative roles for affected employees.
• Consultation period: This duty arises during redundancy consultation. You should actively search for and propose suitable vacancies - either elsewhere in your business or, for larger companies, in any group companies.

If you don’t take this step, employees could claim unfair dismissal or argue that the redundancy process was not genuine or fair - which can lead to costly compensation and damage to your reputation.

What Makes Alternative Employment “Suitable”?

Not every vacancy is automatically a “suitable” alternative. The law asks employers to consider all the circumstances to establish if the offered role is reasonable.

Key factors include:

• Pay and benefits: Is the salary, holiday, pension, and bonus package broadly similar?
• Status and seniority: Does the new job reflect the level and responsibility of the old one?
• Location and travel: Is the work location convenient and reasonable (for example, not forcing a long or impractical commute)?
• Working hours: Are the work patterns (such as shifts, overtime, or flexibility) similar?
• Skillset and experience: Is the role matched to the employee’s existing abilities? Will substantial retraining be needed?

An alternative job doesn’t have to be identical - but it must not require a significant sacrifice or dramatic change. Ultimately, whether a role is suitable will depend on the individual situation.

How Should You Offer Suitable Alternative Employment?

To comply with your legal duties, you must:

• Proactively search for internal and group vacancies.
• Formally notify impacted employees of potentially suitable roles - don’t assume they’ve checked internal job boards.
• Provide details of the job (title, responsibilities, location, pay, terms, reporting line, and start date).
• Give a reasonable timeframe for the employee to consider and respond (typically a few days to a week, depending on circumstances).
• Allow for a trial period (usually 4 weeks) in the new role. If the employee or employer finds the alternative is not genuinely suitable after this period, statutory redundancy pay may still be due.
• Record the process in writing (including offers, acceptances/refusals, and outcomes), as solid evidence for any later dispute.

If you need support with your onboarding or offboarding documents, it may help to explore a step-by-step onboarding guide or a practical offboarding checklist tailored to your situation.

What If an Employee Refuses Suitable Alternative Employment?

If you offer a genuinely suitable job and the employee unreasonably refuses it, they could lose their right to statutory redundancy pay. However, what counts as “unreasonable” is a judgment - and tribunals typically look at both the job details and the employee’s personal circumstances.

Reasons that may be reasonable for refusal include:

• A significantly lower salary or drastically different benefits
• Much longer or impractical travel to the new work location
• Different work patterns incompatible with caring duties or health conditions
• A major change in job content that doesn’t match the person’s skills/experience

If refusal is judged reasonable, the employee should still receive redundancy pay. If it’s unreasonable, you have a strong legal basis to withhold this payment. As always, clear documentation is your best friend in case of future challenge.

Redundancy, Consultation and Risk: How Does Suitable Alternative Employment Fit In?

The requirement to offer suitable alternative employment is embedded within UK redundancy laws, so it’s not an optional extra. It sits alongside (and is part of) your wider consultation obligations whenever you’re planning terminations on redundancy grounds.

If you’re not sure how the consultation process works, or where suitable alternative employment fits in, you’ll want to read our complete guide to UK redundancy laws which covers consultation, selection, notice, and more.

Legal Risks of Getting It Wrong

Failing to properly consider or offer suitable alternative employment isn’t just a technicality - it can have real legal and financial consequences for your business, including:

• Unfair dismissal claims: Where employees allege that redundancy was not a "fair reason" for termination because suitable work was available.
• Statutory redundancy pay claims: Employees who are denied fair redundancy pay may bring claims against you.
• Reputational damage: How you handle redundancies and alternatives is closely watched by remaining staff and the wider industry.

Top tip: Having clear documentation and sound contract management makes a huge difference if you ever need to demonstrate you acted fairly and lawfully.

Best Practice Steps for Managing Suitable Alternative Employment

If you’re facing redundancies or a restructure, here’s a step-by-step checklist to help you handle suitable alternative employment lawfully and fairly:

1. Map All Internal Vacancies: As soon as redundancies look likely, list all suitable alternative jobs in your organisation (and any group entities, if relevant).
2. Assess Suitability: Consider each role against pay, duties, hours, location, and seniority. Document your reasoning for why a role is (or isn’t) suitable for each impacted individual.
3. Communicate Early: During consultation, tell affected employees about any available suitable roles. Share the job details in writing.
4. Offer Trial Periods: Let employees try the new role for at least 4 weeks. This trial is a legal right for redundant staff considering alternatives.
5. Document Everything: Record every offer, refusal, acceptance and outcome. This evidences your legal compliance and will be critical if a claim arises.
6. Update Contracts: If the employee transitions into a new role, make sure to issue an updated employment contract that reflects their new responsibilities, pay, location or working hours.

And as always - if in doubt, seek professional guidance. It only takes one oversight to turn a well-intentioned process into an expensive legal dispute.

Related Legal Requirements to Watch Out For

While suitable alternative employment is a vital part of redundancy law, don’t lose sight of your other obligations. Here are some related laws and compliance issues UK employers must still tackle:

• Holiday pay and statutory entitlements - these are preserved through redundancy and alternative offers.
• Providing a written statement of particulars - a legal must for new/changed job terms.
• Protection against unfair dismissal - proper consultation and alternatives are key to a fair process.
• Discrimination laws (Equality Act 2010) - offers of alternative work must not discriminate on the basis of age, sex, disability, or other protected characteristics.
• Employee rights to reasonable adjustments, if disabilities are involved - this may impact what’s considered a “suitable” role.

It can be a lot to juggle, especially for small businesses undergoing rapid change. If you’re unsure of your responsibilities, getting expert legal advice can save your business time, money, and stress.

Essential Legal Documents You’ll Need

Managing suitable alternative employment is not just a matter of best practice - it’s about having the right paperwork in place. Key documents include:

• Employment contract updates or new offer letters
• Written redundancy notices (explaining the reason and terms)
• Records of consultations and any alternative job offers
• Trial period agreements
• Settlement or compromise agreements (if appropriate)

Avoid using generic templates or drafting these documents yourself - legal agreements should be tailored to your unique business and workforce. A strong paper trail will protect you if any issues arise down the track.

Frequently Asked Questions About Suitable Alternative Employment

Can I Offer a Role in a Different Location?

Yes - but only if the commute or relocation isn’t unreasonable for the employee. Always factor in travel time, costs, and personal circumstances.

Does Suitable Mean Exactly the Same Role?

No. It just needs to be reasonably similar - matching on salary, status, skills, and working conditions. Some differences are fine, but the job shouldn’t be a dramatic step down or outside the employee’s expertise.

Is It Enough to List Internal Vacancies Online?

Not always. You must actively tell impacted staff about available suitable roles - don’t assume people will just spot a job advert or website listing.

What If There's No Suitable Role Available?

If there are genuinely no suitable vacancies, you can proceed with redundancy (subject to your full legal obligations, including proper notice, fair selection, and, where due, redundancy pay).

Key Takeaways

• Offering suitable alternative employment is a legal requirement when making redundancies in the UK - it protects both your business and your employees.
• What counts as “suitable” depends on pay, seniority, skills, location, hours, and personal circumstances.
• Employers must actively seek out, offer, and document suitable alternatives, giving employees proper information and a trial period.
• If a suitable alternative is unreasonably refused, statutory redundancy pay can be withheld - but be careful what counts as “unreasonable.”
• Always update contracts and maintain a written record of the process to defend against claims of unfair dismissal or non-compliance.
• Legal compliance doesn’t stop at redundancy - remember to cover written particulars, statutory entitlements, and anti-discrimination laws.
• Expert legal advice and professionally drafted documents will give peace of mind and keep your business protected through change.

If you’d like tailored advice about managing suitable alternative employment or handling redundancy the right way, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligation chat. Our friendly team can help you set up the right documents and processes to keep your business protected from day one.