Q. We’d like to restructure our sales department
but it would mean making a team leader position redundant. We don’t want to
lose the person working in that role as they have invaluable knowledge about
our business. We are trying to find another role for them. If we do offer them
another role, do we have to offer them a redundancy package as well?
A. It really depends on the new role offered to the
employee. If they are offered a different role, moving from management to
non-management with loss of salary and benefits but with no break in service,
they are entitled to redundancy pay but only as an alternative to accepting the
non-management position. This is termed an offer of “alternative employment”
because the new role does not equal the previous role in terms of benefits,
salary or responsibility. The employee has a statutory right to a four week
trial in the new role. If they decide during that period that they do not want
to continue with it, they can still opt for redundancy.
However, if
the employee is offered a new position which is considered “suitable
alternative employment”, because the new role is very similar to the redundant
role, then it’s unlikely the employee will be entitled to redundancy as an
alternative option.
It’s always
best to seek advice though on this to confirm what’s “suitable” or just
“alternative” employment. This also highlights the importance of having up to
date job descriptions for employees which are reviewed regularly.
In both
scenarios, the employee should be made fully aware of their options. A failure
to do so could result in the employee bringing a claim against the business at
a later date arguing they made a decision when they were not informed of their
options.
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