Redundancy confirmation (with settlement agreement) letter template
Recent customers:
Supporting information
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.
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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What is this for?
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.
Extended guidance
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Documentation sequence
Final individual redundancy consultation meeting invitation letter template
If you need to conclude consultation with a provisionally selected employee, send this model redundancy consultation final meeting invitation letter template.
Settlement agreement template
Our Settlement Agreement Template facilitates fair and clear resolution, easing legal processes for both parties involved in employment separation.
