Redundancy, Suitable Alternative Jobs and Pay Cuts

Squiffy

Tomorrow I have a meeting with HR and my dept head where I will be given my formal redundancy notice. We've been in "consultation" for a while and I have been pursuing lots of internal job applications.

I have been told about the difference between "suitable alternative" and alternative jobs.

I've been told that if I find a "suitable alternative" job, then my existing T&Cs are preserved and I move straight into the job.

If it is just an "alternative" job, then my T&Cs may be changed.

I think HR may have been telling me porkies.

At £63k my salary is way, way above the maximum for my grade (about £50k). HR say that a "suitable alternative" is a job advertised at the same grade and with the same salary. As no other jobs will offer my current salary at that grade, no jobs will be a suitable alternative and they claim that I would have to accept a cut in my salary for any internal job.

My union say this isn't true.

They say that a suitable alternative is one that is at the same grade - period. And they would not be allowed to reduce my salary UNLESS they actually make me redundant and re-hire me.

Is that right? Any advice would be much appreciated as I'm torn on whether to accept a potentially large redundancy & PILON payment and go elsewhere on less salary, or stay here and try and maintain my current salary.

Overall I'm a bit confused at the moment with the conflicting things I have been told.

Squiffy

I've got the meeting at midday.

Anyone got any advice on what the situation is if I find another job and they want to reduce my salary?

Squiffy

I've had another discussion with the Union. This time it was a much more experienced guy who was able to answer my queries with more authority.

Basically, the very fact that a job is advertised at a lower salary in itself makes the job not a "suitable alternative".

So if I am offered a job at lower pay, then I either accept it, or accept redundancy.

Oh well.

A huge shame IMHO that the two Union guys said different things. I wish the first one was right!

rchddap1

Glad its all cleared up, but it doesn't exactly help your situation.

Good luck

Jacster_2

Squiffy wrote:

I've been told that if I find a "suitable alternative" job, then my existing T&Cs are preserved and I move straight into the job.

If it is just an "alternative" job, then my T&Cs may be changed.

My union say this isn't true.

They say that a suitable alternative is one that is at the same grade - period. And they would not be allowed to reduce my salary UNLESS they actually make me redundant and re-hire me.

Is that right?

Suitable alternative employment is a legal term which means that the company would not have to make you redundant, even though your current role has disappeared.

A number of things determine whether or not a different role can be classed as 'suitable alternative employment'. Here's some stuff from the ACAS website...

[url=""][/url]Suitable alternative work

It is up to the employee to decide whether the alternative work is suitable. However, an employer should be aware that the following factors may influence their decision:

Pay

• Wherever possible, earnings should be protected against a fall in the current rate of pay. Alternatively, there may be opportunities for employees to earn more (eg: by productivity bonuses)

My note - protection may not last forever, and if you are currently paid above market rate, protection unlikely to last very long, and I would guess a reduction quite likely...:o

Status

• Any loss of status may be eased by allowing the employee preferential treatment should the original job become available again following an upturn in business

Location

• The employer should consider the degree of disruption likely to be caused by a change of location and any additional expense incurred. Any increase in travelling time should be considered in relation to the age, health and domestic circumstances of the employee

Working environment

• This may be especially important for those employees who suffer a health complaint or physical disability

Hours of work

• Any change in an employee's hours of work, for example in shift patterns, may be considered unsuitable if it fails to take account of the individual's personal circumstances.

An employer may also consider the possibility of retaining the employee in a temporary capacity until permanent vacancies arise. This is particularly appropriate where vacancies arise regularly.


What is a suitable alternative?

In a redundancy situation, an employee with a minimum of two years continuous service has the right to a redundancy payment if a suitable alternative position is not available. Any offer of alternative employment must be with the same employer, or an associated employer or a successor employer who takes over the business. The new job must start either immediately after the old job ends or within a period of 4 weeks from that time.

If a suitable position is offered before the old contract of employment expires, then there would not be an entitlement to a redundancy payment. A payment would only be due if there is no alternative a suitable position or if the new employer does not fall under the aforementioned categories. Any dispute over whether or not the alternative job was suitable can only be determined by an employment tribunal.

Where can you get more information?

Acas Advisory Booklet: Redundancy Handling


All quite complex, but hope this helps a little..

If you need more, have a look at www.acas.org.uk

HTH:)

Debt_Free_Chick

Pay


Wherever possible, earnings should be protected against a fall in the current rate of pay. Alternatively, there may be opportunities for employees to earn more (eg: by productivity bonuses)
My note - protection may not last forever, and if you are currently paid above market rate, protection unlikely to last very long, and I would guess a reduction quite likely...

Yes ... what generally happens is that your (higher) pay is frozen until the going-rate of pay for the new position catches up.

Eg. currently paid £60k, new job at £50k. You get no pay rises until the rate for the new job exceeds £60k .....