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Settlement agreement (redundancy) letter template

Reviewed 9 March 2021

This is a standard Settlement Agreement containing redundancy specific wording, to protect the employer against claims of unfair dismissal when terminating an employment contract.

This letter is issued in conjunction with the Settlement Agreement template.

Settlement agreement (redundancy)

[Sender name]

[Sender address]


[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 maximum of £[amount] per week) and the number of years service with the Company.

  1. The Company will therefore pay you a total sum of £[amoun

This is a word-limited preview. The full template will be displayed here in full once you purchase it individually, or when you purchase the termination template pack.

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