If an employee unreasonably refuses suitable alternative employment in a redundancy scenario, they are treated as dismissed. This means that an employee could lose their right to a statutory redundancy payment (provided that they were otherwise eligible e.g. two years continuous service). However, the employee will still be entitled to receive notice in the usual way or a payment in lieu of notice if permitted by their contract.

Notice of termination should be clear and unambiguous and the fact that an employee rejects suitable alternative employment does not necessarily amount to a resignation. In any event, even if the employee had resigned, they would still be entitled to notice pay (or perhaps a payment in lieu of notice).