CM December 2023

HR MATTERS
Love action
Blowing the whistle on revenge,
Love and Royal Assent.
AUTHOR – Gareth Edwards
IN Love v M B Farm Produce Ltd, a Tribunal
has found that an employee’s entitlement
to a statutory redundancy payment was not
reinstated after they unreasonably rejected
an offer of suitable alternative employment,
and then changed their mind.
As was reported, the claimant worked at a farm
shop that was due to close. She was at risk of
redundancy. Her employer offered her an alternative
role at another farm shop. Love initially rejected the
offer due to concerns about the commute to her
new workplace.
When her employer then confirmed she would
no longer be entitled to a statutory redundancy
payment, she reconsidered her position and
asked to take up the vacancy on a trial period.
Her employer rejected the request and made
her redundant without a statutory redundancy
payment. Love brought a claim for a statutory
redundancy payment and for unfair dismissal.
The Tribunal rejected the claim for a statutory
redundancy payment. The relevant statutory
provision confirms that the entitlement to a
statutory redundancy payment will be lost if a
suitable position is offered and unreasonably
refused. It does not cater for a scenario whereby the
entitlement to a statutory redundancy payment can
be restored if the employee changes their mind.
However, the Tribunal upheld the claimant's
unfair dismissal claim. The employer should have
explored the possibility of the claimant taking up
the alternative role subject to a trial period as she
ultimately suggested, albeit this would not have
restored her entitlement to a statutory redundancy
payment.
This is a first instance decision and not binding
on other tribunals. In addition, whilst the Tribunal
found in favour of the employer in respect of the
entitlement to a statutory redundancy payment, it
is possible that the opposite conclusion might have
been reached. Employers ought to think through the
legal and commercial risks and benefits of refusing
a statutory redundancy payment before deciding on
next steps.
The relevant statutory provision
confirms that the entitlement to a
statutory redundancy payment will
be lost if a suitable position is
offered and unreasonably refused.
Brave | Curious | Resilient / www.cicm.com / December 2023 / PAGE 52