In the case of a redundancy and offer of alternative employment, you must follow the same rules and procedure as in the case of an ordinary dismissal. The threshold for valid dismissal, on the other hand, will normally be lower in the case of a redundancy and offer of alternative employment than in the case of an ordinary dismissal, says lawyer Malin Stenseth in SANDS. What exactly is a redundancy and offer of alternative employment, and when should you consider a redundancy and offer of alternative employment?
A redundancy and offer of alternative employment means that a ship worker is dismissed at the same time as you offer them a new position on different terms.
When is a redundancy and offer of alternative employment relevant?
A redundancy and offer of alternative employment will be relevant if you, as an employer, have a factual need to dismiss a ship worker, but at the same time want to keep the employee in another position.
A redundancy and offer of alternative employment may also be relevant if you need to make major changes to the employee’s position. Such changes must be implemented by terminating the employment contract and at the same time offering a new position on different terms. It is not necessary to go for a redundancy and offer of alternative employment if the change can be carried out by the employer’s management right, explains Stenseth.
The threshold for a redundancy and offer of alternative employment
In order for a redundancy and offer of alternative employment to be valid, like other dismissals, there must be a factual reason, and the threshold under Norwegian law is, as is well known, high. As the consequences for the employee are often smaller in the case of a redundancy and offer of alternative employment than in an ordinary dismissal, the threshold for a redundancy and offer of alternative employment will often be lower than in the case of ordinary dismissals.
That the threshold is lower is confirmed by the Supreme Court in a judgment where a first officer on Hurtigruten was dismissed from his position due to misjudgements and communication failures which resulted in a loss for the employer. At the same time as the dismissal, the employee was offered the position of second officer.
- The Supreme Court states in the judgment that it is relevant to emphasise whether the employee has received an offer to continue in the business when deciding whether the dismissal is justified, says Stenseth. The negative consequences of the dismissal will naturally be smaller for the employee in such cases.
Must be relevant and applicable
However, do note that not all offers of a new position will lower the threshold for valid dismissal. How much weight the offer is given will depend on how relevant and applicable this offer is to the employee, and here both salary, work tasks and position level must be taken into account.
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Did you know:
- The rules of the Ship Labour Act must be complied with both in the case of ordinary dismissal and redundancy and offer of alternative employment.
- Before the employee is dismissed, the issue must be discussed with the employee and the employee’s representative.
- The formal requirements must also be followed in case of a redundancy and offer of alternative employment.
- The employee has the right to carry out the notice period in its original position.
If you are unsure about the process, we recommend you seek legal assistance today. SANDS’ employment law team regularly assists employers and shipping companies in dismissal processes both on land and at sea. Feel free to contact us.