Right to redundancy payment

Case 5: The facts

Shop assistant Elaine Rice was made redundant when the shop closed. Her employer offered her a job working shifts in another shop; she accepted this on a trial basis, but during the trial she said she did not want the job as the hours did not suit her. Offered a return to fixed hours, she rejected this and left.

A tribunal held that Rice was not entitled to a redundancy payment because the second job offer was a suitable alternative which she had unreasonably refused.

The ruling

The Employment Appeal Tribunal upheld the tribunal’s ruling. Employees lose their entitlement to a redundancy payment if they unreasonably refuse an offer made before the existing employment terminates, and a trial period in an alternative job extends the employment.

Rice v Mr & Mrs Walker t/a Kitchen Shop UKEAT/0498/05