Claimant v City of York Council
Outcome
Individual claims
The tribunal found that the offer of the Director of City Development role was not a suitable alternative employment. The role represented a clear demotion in terms of pay (10% cut), scope (reduced from 11 service areas to 6), responsibility (budget reduced from £70m to £946k revenue, and £400m to £48m capital), and status (from Corporate Director to Director, with former subordinates becoming peers). The tribunal concluded that these material differences meant the claimant was entitled to his statutory redundancy payment.
Facts
The claimant was Corporate Director of Place at City of York Council with responsibility for 11 service areas, 770 staff, and budgets totalling over £400m capital and £70m revenue. Following a restructure, his role was deleted and replaced with three Director positions. He was offered the Director of City Development role, which had responsibility for only 6 areas, around 40 staff, and significantly reduced budgets. The claimant believed the restructure was designed to remove him from the organisation and refused the offer, seeking redundancy and access to enhanced pension benefits available from age 55.
Decision
The tribunal found the Director of City Development role was not suitable alternative employment. It represented a clear demotion in pay (10% cut), scope, responsibility, and status. The claimant would be working alongside former subordinates as peers, with vastly reduced responsibilities. The tribunal concluded the claimant was entitled to his statutory redundancy payment of £10,500.
Practical note
A role with significantly reduced responsibilities, budget, staff numbers, and status will not constitute suitable alternative employment even if both positions are senior and strategic, particularly where the reduction would be known to colleagues and could damage future career prospects.
Award breakdown
Award equivalent: 4.6 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 6016204/2024
- Decision date
- 17 December 2025
- Hearing type
- full merits
- Hearing days
- 3
- Classification
- contested
Respondent
- Sector
- public sector
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Corporate Director of Place
- Salary band
- £100,000+
- Service
- 10 years
Claimant representation
- Represented
- Yes
- Rep type
- barrister