Redundancy Letter Template

This document is a redundancy letter template that informs the employee that they have been selected for redundancy and is a formal notice of termination of their employment contract. Read more
Legislation GB-EAW
Topics Updated by a lawyer: 4 Apr 2024

What is this redundancy letter template?

This redundancy letter template informs an employee that their employment is being terminated due to redundancy following a consultation process. This letter communicates the outcome of the redundancy process, provides details about final payments and company property, reminds the employee of ongoing legal obligations, and outlines the appeal process if the employee disagrees with the decision.

Overall, this template serves as a formal and legally compliant way to communicate the termination of employment due to redundancy, ensuring that both parties are aware of their rights and responsibilities during this transition.

What are the benefits of using this redundancy letter template?

  • Transparency: This redundancy template provides a clear and structured way to communicate the outcome of the redundancy process, maintaining fairness while ensuring that the employee understands the reason for termination and the next steps.

  • Deals with final payments: It explains the details of final payments, including salary, holiday entitlement, and expenses, ensuring that the employee knows what to expect.

  • Ensure company property is returned: The letter reminds the employee to return any company property and specifies the deadline for doing so, helping ensure a smooth transition.

  • Reminder of legal obligations: It reminds the employee of their ongoing legal obligations as per their employment agreement.

  • Appeal process: The letter provides information about the employee’s right to appeal the decision, offering a mechanism for the employee to challenge the redundancy outcome.

  • Compliance: While using a redundancy letter template will not guarantee automatic compliance with UK employment laws, it promotes clarity and fairness while keeping a written record in case of future disputes. For a step-by-step process to managing staff redundancies, check out the Acas website.

This redundancy letter template assumes that the employer is a UK-registered company and that English law governs the terms of employment and redundancy rights.

What are the key points that are addressed in this redundancy letter template?

  • Purpose of the letter: This introductory section briefly explains that the letter is informing the employee of the termination of their employment due to redundancy.
  • The outcome: This part states the outcome of the consultation process, which is the decision to make the employee's role redundant due to specific reasons.
  • Final payments: It outlines the employee's entitlement to final payments, including salary, outstanding holiday pay, and expenses and specifies the payment date.
  • Company property: The section addresses the return of any company property and sets a deadline for its return.
  • Ongoing legal obligations: This part reminds the employee of their legal obligations post-termination in accordance with their employment agreement.
  • Appeal process: It informs the employee of their right to appeal the decision and provides instructions on how to do so.

This redundancy letter template is fully customisable and can be tailored to suit your business needs.

The redundancy process

Redundancy letters are forms of communication by a company to its employee(s) that they are either at risk of or have been selected for redundancy (i.e., that their role at the company will be terminated due to changes in the business which means that the role is no longer required). These letters are only suitable for small-scale redundancies where stand-alone roles are being made redundant. For redundancy processes requiring selection processes, or where collective consultation is required, specific legal advice should be sought.

This redundancy letter template is the final letter that will be sent to the employee undergoing the redundancy process as part of Docue’s redundancy letter collection of templates.

Our redundancy letter templates should be used in a specific order as part of the redundancy process, as detailed below:

  1. An ‘at risk’ letter informs the employee that they are being considered for redundancy, and the reasons why. It also sets out the company’s process consultation meetings and timetables being put in place and reminds employees that they can be accompanied to these meetings.

  2. An ‘invite’ letter - this is where this redundancy letter template comes in. This letter invites the employee to attend a consultation meeting to discuss the possibility of, and how to potentially avoid redundancy, or re-position the employee somewhere else in the business. This also provides the employee with an update since the last meeting.

  3. An ‘outcome’ letter informs the employee that they have been selected for redundancy and is a formal notice of termination of their employment contract. It also sets out the employee’s rights (depending on their contract and period of service), including the right to appeal the decision, and a reminder of obligations that survive termination of the employment contract.

These letters are for a very straightforward process where a single role is disappearing. If you are choosing one employee from several performing the same role, or it is a complex situation, or you wish to make 20 or more people redundant you should seek legal advice as there are strict consultation rules and timings to follow.

An employer must pay redundancy to any employee who has been employed for 2 or more years - to calculate an employee's statutory redundancy pay, check out the government website. You do not need to pay redundancy when an employee has less than 2 years of service.

Why use Docue's redundancy letter template?

Simple: With Docue, you can create a legally compliant redundancy letter template letter easily and quickly. All you have to do is answer a series of questions, and your letter will be automatically created in real-time.

Created by lawyers: The redundancy letter template includes model clauses designed by lawyers to help you draft the letter yourself and tailor it to your unique circumstances.

All-in-one solution: Signatures can be collected electronically, and all documents can be stored securely in Docue Drive.

Tags: redundancy letter template, redundancy outcome letter, notice of redundancy outcome, redundancy letter

Legislation GB-EAW
Topics Updated by a lawyer: 4 Apr 2024

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