# Can I refuse a new job offer from my employer and still get my redundancy pay?

- Jurisdiction: United Kingdom
- Practice area: Employment Law
- Published: 2026-10-28
- Last updated: 2026-10-28
- Canonical: https://lawasked.com/uk/employment-law/can-i-refuse-new-job-offer-my-employer

## Question

I have been working as a warehouse supervisor at a logistics firm in Manchester, England, for over six years. My current contract is being terminated because the company is restructuring, and they have informed me that my role is being made redundant effective from the 30th of next month. However, last Tuesday, my manager sat me down and offered me a new position as a team leader starting on the 1st of the following month. The new role has a slightly different job description and involves managing a larger team of fifteen people instead of ten, but the pay cheque remains exactly the same at £32,000 per year, and the working hours haven't changed. I am quite worried because I was actually hoping to take a break or find something in a different sector, but I am concerned that if I turn this down, I won't get the redundancy lump sum I have been counting on to pay off my mortgage. I have already spoken to my union rep, but they weren't entirely sure about the specifics of my situation. If the new role is basically the same but with slightly more responsibility, am I legally allowed to say no and still claim my redundancy money, or does this offer count as suitable alternative employment?

## Summary

It depends on whether the new Team Leader role is considered 'suitable alternative employment.' If the role is suitable and you refuse it unreasonably, you may lose your right to redundancy pay.

## Analysis

Whether you can receive your redundancy lump sum depends on the nature of the Team Leader role offered to you. Under the Employment Rights Act 1996, an employer can offer you a new contract to take effect after your current one ends [1]. 

If the new role is considered 'suitable alternative employment,' you might lose your money if you say no. The law states that "the employee is not entitled to a redundancy payment if he unreasonably refuses the offer" [1]. This means if the job is a good match for you, refusing it without a good reason could cost you your payout.

To decide if the role is suitable, the law looks at two things. First, it checks if the new contract's "capacity and place in which the employee would be employed, and... the other terms and conditions of his employment, would not differ from the corresponding provisions of the previous contract" [1]. In your case, your pay (£32,000) and hours are staying the same, but your 'capacity' (your job role and responsibilities) is changing because you will manage fifteen people instead of ten. 

Second, even if the terms do change, the offer might still be considered suitable if "the offer constitutes an offer of suitable employment in relation to the employee" [1]. 'Suitable employment' is a legal term for a job that is a reasonable match for your skills, status, and needs. Because your responsibilities are increasing, a court would have to decide if this change is a reasonable shift or if it makes the job unsuitable for you. 

If the employer were to terminate your contract because of your conduct (your behavior at work) rather than redundancy, different rules regarding your entitlement to pay would apply [2]. However, your situation currently concerns a restructuring and a new job offer.

## Statutory citations

- Employment Rights Act 1996, Section 141 - Renewal of contract or re-engagement. [in force] (https://www.legislation.gov.uk/ukpga/1996/18/section/141)
  > the employee is not entitled to a redundancy payment if he unreasonably refuses the offer
- Employment Rights Act 1996, Section 141 - Renewal of contract or re-engagement. [in force] (https://www.legislation.gov.uk/ukpga/1996/18/section/141)
  > the provisions of the contract as renewed, or of the new contract, as to— i the capacity and place in which the employee would be employed, and ii the other terms and conditions of his employment, would not differ from the corresponding provisions of the previous contract
- Employment Rights Act 1996, Section 140 - Summary dismissal. [in force] (https://www.legislation.gov.uk/ukpga/1996/18/section/140)
  > an employee is not entitled to a redundancy payment by reason of dismissal where his employer, being entitled to terminate his contract of employment without notice by reason of the employee’s conduct, terminates it

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