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View full libraryThis Redundancy Confirmation Letter with Settlement Agreement provides a clear written record confirming the outcome of a redundancy process and the employee’s termination arrangements. It can be used where the employer has completed consultation and is providing a settlement agreement alongside the redundancy outcome.
Use this template to:
-letter-template.jpg "Redundancy confirmation (with settlement agreement) letter template")
If you are managing a redundancy process, the toolkit brings together practical HR templates covering planning, consultation, selection, scoring, outcomes and termination.
This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Redundancy Confirmation
Dear [Employee First Name],
Confirmation of redundancy
Further to our recent discussions and the consultation process regarding the proposed changes to the organisation and the potential impact on your role, I am writing to confirm the outcome.
We have carefully considered the matters discussed during consultation, including the points and suggestions you raised. Having completed the consultation process, we have concluded that your role is redundant and that your employment with [Company Name] will therefore end on [Termination Date].
The reason for the redundancy is [brief explanation of the business reason, for example: a reduction in the requirement for work of this type / restructuring of the department / reduction in the volume of work].
Consultation
During the consultation process, we discussed the proposed changes, the reasons for them and whether there were any ways in which the redundancy could be avoided or its impact reduced.
We also considered the points you raised during consultation, including [briefly summarise any relevant alternatives, vacancies, changes or suggestions considered]. Having considered these matters, we have concluded that there is no suitable alternative arrangement that would avoid the redundancy of your role.
Termination date and notice
Your employment will terminate on [Termination Date]. Your notice period is [Number] weeks.
[You will work your notice period in the normal way.]
OR
[You will not be required to work your notice period and will receive payment in lieu of notice in accordance with the terms of your employment and the applicable tax and National Insurance requirements.]
[You will remain on garden leave during your notice period and will continue to receive your normal contractual pay and benefits, subject to the terms of your employment.]
Payments due to you
Subject to the final payroll calculation, you will receive the following payments:
| Statutory redundancy payment | £[Amount] |
| Notice pay / payment in lieu of notice | £[Amount] |
| Outstanding holiday pay | £[Amount] |
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This letter provides a formal written confirmation of the outcome of a redundancy process where the employer is also offering or has agreed a settlement agreement with the employee. It brings together the key practical information the employee needs while keeping the redundancy decision and settlement agreement as separate documents.
The letter records that consultation has concluded and confirms the employer's decision. It should briefly explain the business reason for the redundancy and, where relevant, confirm that alternatives and suggestions raised during consultation were considered.
The letter should clearly state the employee's termination date and whether they will work their notice, remain on garden leave or receive payment in lieu of notice. It should also explain the payments that will be made through the final payroll.
A settlement agreement is a separate legally binding document. The letter can confirm that the agreement has been provided and explain any additional settlement payment, agreed reference or other arrangements, but should not attempt to replace the agreement itself.
The employee should be given reasonable time to consider the settlement agreement and obtain independent advice. Acas recommends allowing at least 10 calendar days to consider formal written settlement terms and obtain advice, subject to the circumstances of the case.
The letter should provide a clear record of the redundancy decision and practical arrangements without making unnecessary statements about claims or rights that are dealt with separately in the settlement agreement.
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.
A settlement agreement can provide a structured way for an employer and employee to agree the terms of resolving an employment dispute or bringing the employment relationship to an agreed end.
Use these best practice actions, recommended timescales and process stages to understand when and how the Redundancy confirmation (with settlement agreement) letter should be used, helping ensure each step is handled consistently and appropriately documented.
Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.
No. The redundancy confirmation letter records the outcome of the redundancy process and the practical termination arrangements. A settlement agreement is a separate legal contract with specific statutory requirements, including independent legal advice for the employee.
A settlement agreement can be used alongside a redundancy process and does not automatically change the underlying reason for the termination. Acas confirms that an employee who agrees voluntary redundancy and signs a settlement agreement is still treated as redundant.
Acas recommends allowing at least 10 calendar days to consider formal written settlement terms and obtain independent advice. Additional time may be appropriate depending on the circumstances, including where reasonable adjustments are required.
Yes. It is generally clearer to identify statutory redundancy pay, notice pay, holiday pay and any additional settlement or severance payment separately. This also helps payroll apply the appropriate treatment to each element.
Yes. For a settlement agreement to meet the statutory requirements, the employee must receive advice from a relevant independent adviser on the terms and effect of the agreement and its impact on their ability to pursue the claims covered by it.
HRDocBox templates are designed around practical UK HR processes, employment law and established HR practice. They provide a structured starting point that can be adapted to the circumstances, while employers should still obtain appropriate legal advice where the circumstances or settlement terms require it.
How this content is developed and reviewed
The Redundancy confirmation (with settlement agreement) letter template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.
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 HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
HRDocBox has been creating practical UK HR documents since 2009.
"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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