Salary reduction proposal to avoid redundancy letter template
If you have proposed a salary reduction as an alternative to redundancy, send this model letter to them to confirm the proposal and request their agreement.
- 2 pages / 326 words
- Instantly download as Word / PDF / plain text
- Suitable for United Kingdom use only
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Salary reduction proposal to avoid redundancy letter
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
I refer to my meeting with you on [date], during which we discussed whether you would be willing to agree to a reduction in your current basic salary level.
As I explained to you, due to
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A salary reduction proposal to avoid redundancy letter is used to inform employees that the company is exploring alternatives to potential redundancies in the way of a permanent or temporary reduction in salaries. The letter aims to explain the proposal in detail, including the percentage or fixed amount of the proposed salary reduction and the duration of the proposed reduction (if temporary).
The purpose of the letter is to encourage employees to consider the proposal and to provide them with an opportunity to ask questions and express concerns. The letter is intended to be transparent about the financial challenges facing the company and to seek the input and cooperation of employees in finding a solution that works for everyone.
Ultimately, the purpose of the letter is to avoid redundancies and to support employees during a challenging time. The letter communicates the company's commitment to finding alternatives to job losses and to working collaboratively with employees to find a solution that is fair and reasonable for all parties involved.
Direction:
Flowchart
Flowchart
Check which resources should be implemeted before and/or after the Salary reduction proposal to avoid redundancy letter template, to understand the workflow.
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Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Salary reduction proposal to avoid redundancy 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.
