Where an employee is made redundant they can be entitled to a statutory redundancy payment. But, under the Employment Rights Act 1996, s.141, they are not entitled if they are offered suitable alternative employment and they unreasonably refuse the job offer. However, how would you define when an employee is being 'unreasonable' in refusing a job offer even if they are eminently well qualified and suitable for the job in question? This was the question appealed to the EAT in Readman v Devon Primary Care Trust [2011] UKEAT 0116.

In this case, Ms Readman had worked for 23 years in Community Nursing, ending up holding a senior position in that field. In 2007 she was told she was at risk of potential redundancy. Ms Readman was offered the choice of one of two alternative positions at a lower wage, one of which she tried and rejected. The employment tribunal accepted that these alternative jobs did not constitute suitable alternative employment and she was not unreasonable in refusing the job, because of the loss of status.

Ms Readman was then offered a new job on her same wage band and equivalent in position, but this would involve her moving from Community Nursing into Hospital Nursing. Although the offer was identical to her current role in status, pay, professional lead, and nursing management responsibilities, Ms Readman rejected this new job and was duly made redundant.The NHS Trust refused to pay redundancy on the grounds that she had unreasonably refused an offer of suitable alternative employment, accusing her of rejecting the job "almost out of hand". But was she unreasonable in refusing the alternative employment?

Ms Readman gave as her reason for refusing the alternative role that her career path and qualifications were in Community Nursing. She had not worked in a hospital setting for some 23 years and she had no desire to. She had taken a considered decision in 1985 to move away from working and delivering nursing in a hospital setting, preferring to deliver her nursing skills in a community setting.

It did not matter that the NHS Trust considered the job offer a reasonable one; in their view she could easily have retrained in certain skills she would need working in a hospital. No, it was not enough that the Trust thought the job was reasonable, it all depended on Ms Readman's perception of what the alternative employment meant for her personally. There is nothing inconsistent said the EAT with an employee reasonably refusing a job offer for a personal reason, in this case that she had no desire to work in a hospital setting, even if the employer concluded the job offer was a suitable one.

Therefore, the EAT decided that Ms Readman's desire not to work in a hospital setting did provide her with a sound and justifiable reason for turning down the offer of alternative employment and meant Ms Readman was entitled to a redundancy payment.