Refuse suitable alternative work and you may lose the payment

Irish redundancy law contains a provision that can cost you the entire payment if you handle it wrongly — and a protection that makes handling it easier.

The rule

Do not unreasonably refuse suitable alternative work. If you turn it down without trying it, you may lose your redundancy payment.

The four-week trial

You have a four-week trial period in the new role.

That means you can accept the alternative, work it for four weeks, and if it turns out to be unsuitable, your redundancy entitlement is preserved.

Refusing outright without the trial is the risk. Taking the trial is not.

What "suitable" means

It turns on the nature of the work, the location, the terms and how they compare with your previous role. An offer that is materially worse is easier to refuse reasonably.

Leaving before the redundancy date

An employee who has received a Notice of Proposed Dismissal for Redundancy — form RP50 Part A — may decide to leave the employment earlier than the date notified, for instance to take up an offer of alternative employment elsewhere.

Notice periods

Statutory minimum notice by length of service:

• 1 week — 13 weeks to 2 years
• 2 weeks — 2 to 5 years
• 4 weeks — 5 to 10 years
• 6 weeks — 10 to 15 years
• 8 weeks — 15 years or more

Your contract may provide for longer — always check both your statutory and contractual entitlement.

Collective redundancy

For collective redundancies, a 30-day consultation with representatives and ministerial notification are mandatory.

Employers must use objective, measurable selection criteria and document the rationale.

Meaningful individual consultation — including a risk letter and a meeting to discuss alternatives — is mandatory for every redundancy.

The employer's exposure

Failing the 30-day collective consultation rule or other procedural steps can result in fines up to €250,000 and significant compensation awards.

What to do if offered alternative work

1. Get the offer in writing, with full terms
2. Compare it against your current role
3. Consider taking the four-week trial rather than refusing
4. Take advice before declining outright