In a redundancy situation, what obligations does an employer have with regards to offering those at risk of redundancy, suitable alternative employment?

An important part of a fair and reasonable redundancy procedure for an employer to consider whether it, or any associated employer, has any vacancies that would be suitable for employees who would otherwise be made redundant. There is no obligation on the employer to create new jobs for redundant employees, but failure to offer any available suitable alternative employment, may make a dismissal by reason of redundancy, unfair if these opportunities haven’t been discussed or shared with the employees at risk of redundancy. 

If an employee who is at risk of redundancy, applies for another role and is successful in securing a new role, if they have been made redundant already, their contract can be renewed or they can be re-engaged under a new contract, with no loss of service or continuity of employment, if the offer occurs within four weeks of the end of the previous employment. If this is the case, the redundancy will be deemed not to have taken place.  

In addition to the requirement to consider alternative employment as part of a fair redundancy procedure, employers must also comply with the separate duty to offer any suitable alternative vacancy to an employee who is pregnant or on maternity leave, adoption leave or shared parental leave; or recently returned from family leave, when the redundancy occurs (see How to consider offers of suitable alternative work for redundant employees).