Is it expected that an employer should compensate for loss of earnings when a position (team leader) is made redundant and the employee loses their team leader allowance (reverted to production operator role). Also, is there a time limit for the employee to make the claim?

It is unclear from the question as to the full circumstances of this case and further details would be required to advise definitively. However, in general, where a position is made redundant the employee is entitled to receive a statutory redundancy payment, provided they have at least two years service (and otherwise meet the statutory criteria).

As part of the process an employer is expected to ascertain whether suitable alternative employment is available as redundancy should be a last resort. If the employee is offered alternative employment as part of the process (which appears to be the case in this situation) then the employee may be precluded from claiming an entitlement to a