Is Redeployment a Legal Requirement in Redundancy?

In redundancy scenarios, the term ‘redeployment’ is often used interchangeably with offering a ‘suitable alternative employment’ role to an employee facing redundancy. In simple terms, it means the employer offers the employee a different job within the organisation (or group) instead of dismissing them.

According to ACAS, this is known as suitable alternative employment and if a suitable role is available, the employer has to offer it. 

Similarly, a legal guide states that ‘offering suitable alternative employment is a legal requirement when making redundancies in the UK’. 

However, the reality is more nuanced. It is not simply ‘redeploy = legal requirement’ across all cases. Let’s unpack what the law says.

Short answer: no – but there are strong obligations where suitable alternative roles exist

Employer obligation

An employer is not always required to redeploy someone for every redundancy situation. What they must do is:

• Conduct a fair redundancy process (consultation, fair selection, notice) under Employment Rights Act 1996.
• If there is a suitable alternative employment opportunity, the employer must offer it to the employee facing redundancy.
• If they fail to make any serious attempt to find or offer a suitable alternative, that may render the dismissal unfair.
  

Key takeaway

So: while the employer doesn’t have to redeploy regardless of circumstance, they do have a duty to consider redeployment (suitable alternative employment) if a role exists. The duty is stronger where the employee qualifies for statutory redundancy pay (generally 2+ years’ service).

The suitability of alternative employment is assessed on multiple factors – terms, location, skills, status:

• Are the duties similar?
• Is the pay, hours, and benefits broadly comparable?
• Is the location acceptable (e.g. commute) and are the terms reasonably comparable?
• Is the employee able to do the role with their skills/training?
• Has the employer offered a trial period (statutory 4 weeks) so the employee can test it?

From a practical standpoint: if the new job is dramatically worse (much lower pay, significantly longer commute, lower status) then it may not count as ‘suitable’.

If an employer should have offered a suitable alternative role and didn’t:

• The dismissal might be unfair, giving the employee grounds to bring a claim to the Employment Tribunal.
• Employees may be entitled to statutory redundancy pay and other redundancy rights.

If the employer offers a suitable alternative role and the employee unreasonably refuses it:

• The employee may lose their entitlement to statutory redundancy pay.
  

When is refusal reasonable (or not)?

Employees do not have to accept every alternative role. Examples when refusal may be reasonable include:

• The role is significantly less pay or status.
  
• The commute is much longer, making it unworkable given personal circumstances.
  
• It would breach contractual or personal obligations (e.g. health reasons).
  

However, if the role is suitable and the employee refuses without good reason, they may lose the right to redundancy pay.

Best practice checklist:

For employers

• Identify all potentially suitable roles as early as possible when a redundancy risk arises.
• Document the search for alternative employment.
• Offer the role in writing, including job description and terms.
• Give the employee a written offer and time to consider.
• Provide a statutory 4‑week trial period for the new role, extending only if training required.
• Ensure consultation is meaningful and alternatives to redundancy (including redeployment) are explored.

For employees

• Understand that you have the right to be offered a suitable alternative if it exists.
• If offered a new role: get details in writing, ask for a new contract or variation letter.
• During the trial period (4 weeks) you can decide if the role works for you. If you stay beyond that, your redundancy rights may be lost.
• If refusing an offer: respond in writing and make clear your reason, particularly if you believe the role is unsuitable.
• Seek advice if you believe the employer did not genuinely consider alternatives.

In summary:

• Redeployment (i.e. offering a suitable alternative role) is not automatically required in every redundancy situation, but must be considered and acted upon if a suitable role exists.
  
• The employer should demonstrate they seriously considered suitable alternative employment.
  
• Employees should know their rights and respond appropriately to any offer of redeployment.
  
• For clients of ivee, the recommendation is to ensure your redundancy policy clearly addresses the possibility of redeployment, to document any search for alternative roles, and to provide transparent communication and support to affected staff.
  

By following these steps you align with the latest UK employment law and best practice, and maximise the chance of a fair process that withstands scrutiny.