Redundancy confirmation (with settlement agreement) letter template
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If redundancy is confirmed and you wish to include unfair dismissal claim protection, send this model letter to the employee to propose a settlement agreement.
This letter is issued in conjunction with the Settlement Agreement template.
- 2 pages / 366 words.
- Last updated 12/12/2024.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Redundancy confirmation (with settlement agreement) letter
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Re: Redundancy
It is with regret that I write to inform you that the Company (the Company) has decided to make you redundant with effect from [date]. You are aware of and we have discussed the reasons for your redundancy. We have tried to find you a suitable position commensurate with your abilities elsewhere within the Company but there is nothing available.
The Company has however decided to make you an ex gratia payment of £[amount] as compensation for the termination of your employment. In addition, the Company will make you a statutory redundancy payment of £[amount].
The statutory redundancy payment is calculated in accordance with your age, salary (subject to a statutory
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A redundancy confirmation (with settlement agreement) letter is used to confirm an employee's redundancy and to offer a settlement agreement.
A settlement agreement is a legally binding agreement between an employer and an employee that sets out the terms of a settlement between them, often in exchange for the employee agreeing not to pursue any legal claims against the employer. Settlement agreements are commonly used in redundancy situations as a way to ensure a clean break between the employer and employee.
The redundancy confirmation (with settlement agreement) letter typically includes details of the redundancy, such as the date on which it will take effect, the employee's entitlements, and any redundancy payment that will be made. The letter will also outline the terms of the proposed settlement agreement, such as any financial compensation that will be offered, any restrictive covenants that the employee will be required to abide by, and any other terms and conditions that will apply.
The purpose of the redundancy confirmation (with settlement agreement) letter is to formally confirm the redundancy to the employee, and to offer them the opportunity to enter into a settlement agreement. The letter will typically set out a deadline by which the employee must respond to the offer, and will also include information about the employee's right to seek independent legal advice before signing the settlement agreement. Once the settlement agreement is signed, it becomes a legally binding contract between the employer and employee.
It is usually delivered to the Employee by the Employer / HR.
Flowchart
Flowchart
Check which resources should be implemeted before and/or after the Redundancy confirmation (with settlement agreement) letter template, to understand the workflow.
Final individual redundancy consultation meeting script
Our Final Redundancy Consultation Meeting Script Template guides structured and sensitive conversations, addressing employee concerns professionally.
Settlement agreement
Our Settlement Agreement Template facilitates fair and clear resolution, easing legal processes for both parties involved in employment separation.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Redundancy confirmation (with settlement agreement) letter template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
