Just looked it up. My Employment Law book is 4 years old and I'm rusty on this as I have yet to begin my Employment Law module at college, but I believe there are two questions to be considered:-
1. is the offer of alternative employment suitable and 2. if so, is the refusal by the employee to take it up unreasonable. It's Employment Rights Act 1996 Section 141, especially subsection 3 of that clause that he should look at (
www.hmso.gov.uk and find the statute or e-mail me and I'll download a copy and forward it). The case law seems to suggest that he has to make an attempt to fit into some other position in the group. What his employer may be lining him up for is dismissal if he fails to accept the other job but just offering him a job with the same salary but demonstrably different conditions doesn't make it 'acceptable' or 'suitable' in the eyes of the law. 'Suitable' alternative employment means conditions which are reaonsably equivalent to those under the previous employment, which would include the capacity in which he is being asked to work. Sounds like he's being demoted from what you say. It's worth a few quid to run this by an employment lawyer because he mustn't reject the offer out of hand thereby leaving himself open for dismissal. If it's a take over situation there are rules on Transfer of Undertakings - lots of things may be hiding in the wings and surely it's worth getting some professional advice. U2U me if your friend wants a chat with someone at my firm. I'd love to be more help and when I'm up to speed on this stuff I certainly will be happy to give free advice. Just can't rely on me as yet as I'm still a solicitor's slave!
