24 July 2020
No employer enjoys making redundancies, but when you do make them, it’s important you get the process right.
Remember, if you need help with your process you can also contact us on 0800 141 3901 for immediate assistance, or guidance during the coronavirus pandemic. The Job Retention Scheme can help you keep staff on.
But if you must go ahead, part of that process is issuing written notice. In this guide, we provide you with a redundancy letter template—it’s free to download. Along with details on the steps you need to take.
What is a Redundancy Notice Letter?
It’s a written letter that explains why the staff member(s)’ employment is ending. This type of letter would come at the end of the process. It should include other relevant information, such as their last day and anything else they need to know about the remainder of their employment.
Why is a redundancy letter important? If you fail to provide a notice letter with a valid reason for the individual(s)’ termination, you could face a claim of unfair dismissal.
There are numerous fair reasons for issuing a redundancy letter, for example:
- Operational change.
- The arrival of new technology (this could mean they would have less need of them due to the tech covering their role.)
- Changes in the market.
- To reduce business costs.
Bear in mind that issuing a redundancy letter, and nothing else, is not a fair process.
Procedure to Follow When Sending a Redundancy Letter
Use written letters in conjunction with consultation meetings. First, you must write a letter advising of redundancy and which jobs are under threat.
Then, you must have a period of consultation with the employee(s) or their representatives. It’s important to keep your door open throughout the process and listen to your employees.
If it is less than 20 staff, consultations are not a legal requirement but ideally should be done, anyway.
If they’re able to provide an alternative measure to redundancy, you have to consider the option they provide you.
Failure to do this can result in a claim of unfair dismissal.
Once consultation has ended, and you consider all other options, you must then provide a final notice of redundancy.
This letter will confirm your decision to make the employee(s) redundant and confirm their last day with the business.
When Should I use a Redundancy Letter?
So, do you use the Croner template as a final notice—or as an initial notice letter?”
Use this sample letter of redundancy from an employer as the final notice that the employee is being made redundant.
That means you need to use it after the consultation has happened.
What is Included in the Final Redundancy Letter?
A redundancy letter from an employer in the UK should cover several key points. These include:
- An explanation of the reasons redundancies are being considered in your business
- The reason why this individual is being selected for redundancy
- A comprehensive timeline of the process ahead, including consultation
- Details of other available roles if there are any. If there are none, confirm that you have checked for other available roles
- The final date of the employee’s contract
- Detail all of the financial entitlements the employee has, including when they’ll receive the payments.
We cover all of the above in our template letter. To summarise the process you need to follow:
- Use this letter as the final notification of termination of contract.
- After you issue the letter, you should agree to hear the employee’s appeal (if they have one).
The below template will help ensure you’re legally compliant when making redundancies. Remember to personalise the letter to your business needs.
Download Your Redundancy Notice Letter Template
The following redundancy letter template applies to UK businesses only. If you are outside of the UK, different rules and regulations may apply. Download your letter template here:
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