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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.
[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.
Related HR resources and workflow
Explore the HR resources that may be relevant before and / or after using the Redundancy confirmation (with settlement agreement) letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.
Our Final Redundancy Consultation Meeting Script Template guides structured and sensitive conversations, addressing employee concerns professionally.
Our Settlement Agreement Template facilitates fair and clear resolution, easing legal processes for both parties involved in employment separation.
Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.
Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.
Yes, we highlight the areas of the document 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.
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.
If you're looking for broader support, we also offer toolkits and library bundles that include the Redundancy confirmation (with settlement agreement) letter template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.
Darryl Horn, Chartered HR Director
Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.
He has extensive practical experience of managing redundancy processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
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