Redundancy FAQ’s


Can my employer offer me redeployment at a lower salary?

If a redundancy situation arises your employer may make an offer of alternative employment. This offer should provide a suitable alternative and when deciding whether it is suitable an Employment Tribunal will consider aspects including working conditions, hours of work and pay.

Generally, an offer of redeployment at a lower salary of any significant drop in earnings is likely to make a job unsuitable. Therefore it could be a reasonable reason for not accepting the alternative position. However, it would not always be unreasonable to accept a lower paid position and the whole redeployment should be considered.

It is important to note that if an employee unreasonably refuses an offer of suitable alternative employment then an employer may avoid liability for redundancy payment.

In summary, your employer can offer redeployment at a lower salary and it is necessary to consider all aspects of the position when making a decision to accept or reject the offer.

Can my employer force me to choose between redundancy or relocation?

If your contract of employment does not contain a mobility clause then a change of workplace might make an alternative job offer unsuitable or enable an employee to reasonable refuse it, if it is suitable. It is therefore a question of reasonableness and will depend on the circumstances of the particular employee.

Generally, significant extra travelling time and cost will make a refusal to relocate reasonable but it must be considered in the context of current situation and the industry. If it was reasonable to reject the relocation then it would be the employees decision between redundancy and relocation. An alternative solution would be to undertake a 4 week trial period. Any period longer than this and the employee would be deemed to have agreed to the variation in workplace.

If there is a mobility clause within your contract, if your employer seeks to enforce the clause they may be able to avoid making redundancy situation or by establishing reason for dismissal was not redundancy by misconduct, by refusal to obey a lawful instruction to move to a different place of work.

Additionally, and Employment Tribunal may consider existence of a mobility clause as relevant to question of whether redundancy employee has refuse an offer of a reasonable alternative employment.

Does an employee made redundant while on maternity leave have any special rights?

Selection of women for redundancy for a reason related to pregnancy or childbirth will amount to automatically unfair dismissal. It will also constitute direct discrimination.

An employee who is made redundancy while on maternity leave is entitled to be offered suitable alternative employment in preference to other employees.


To get the answers to your employment law questions use  Ask EAD –  free legal advice direct from our team of Liverpool solicitors


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