Notice of a possible redundancy letter template

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A notice of possible redundancy letter informs an employee that organisational or business changes may put their role at risk of redundancy. It explains the reasons for the proposed changes, confirms that no final decision has been made and invites the employee to take part in consultation.

Use this template to:

  • Inform an employee that their role may be affected by a proposed redundancy situation.
  • Explain the business reasons for considering the proposed changes.
  • Confirm that redundancy is a proposal and that no final decision has been made.
  • Invite the employee to an initial consultation meeting.
  • Explain how the employee can raise questions, concerns or alternatives.
  • Set out the next steps and explain how the employee will be kept informed.
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What's included in this template?

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.

  • Notification that the employee's role may be at risk of redundancy.
  • A section explaining the business reasons for the proposed changes.
  • Clear wording confirming that no final redundancy decision has been made.
  • An invitation to an initial consultation meeting, with space for date, time and location.
  • Information about raising questions, suggesting alternatives and discussing potential redeployment.
  • An explanation of the consultation process and anticipated next steps.
  • Customisable wording for the employer's circumstances and proposed organisational changes.
Template

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Email

[Sender name]

[Sender address]

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

Proposed organisational changes and possible redundancy

Private and confidential

I am writing to inform you that [Company name] is considering proposed organisational or business changes that may affect your role as [Job title]. As a result, your role is currently at risk of redundancy.

Reasons for the proposal

The company is considering these changes because [explain the business reasons, such as a reduction in demand, changes to operational requirements, a proposed restructuring, the closure of an activity or other relevant circumstances].

The proposal currently involves [describe the proposed changes and explain how they may

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£12.99
Specifications
Access 12 months, with updates
Length 2 pages • 443 words
Jurisdiction England, Wales, Scotland
Based on UK law, ACAS guidance
Last update 11/10/2026
Update reason Enhanced legal support section.
Next review 11/04/2027
Delivery & Format Instant digital delivery, .doc · .txt · email

What is a notice of a possible redundancy letter?

Notice of a possible redundancy letter template

When a business is considering organisational changes that may result in redundancies, communicating with affected employees clearly and sensitively is essential. A notice of possible redundancy letter provides a formal starting point by explaining that a role may be affected, outlining the reasons for the proposal and inviting the employee to discuss the situation before any decision is made.

This template is designed for UK employers who need to begin an individual redundancy consultation process. It helps managers communicate the proposal professionally while making clear that the employee's role is at risk, rather than confirming that redundancy has already been decided.

Explain the proposed business changes

The letter provides space to explain the circumstances behind the proposal, such as a reduction in work, restructuring, changes in operational requirements or a proposed closure. Employers should provide a genuine and sufficiently clear explanation of the proposal and tailor the wording to the facts.

Begin meaningful consultation

The letter invites the employee to discuss the proposal, ask questions and put forward alternatives. Consultation should take place while proposals remain open to genuine consideration. Employees should have a reasonable opportunity to comment, and employers should consider their representations before reaching a decision.

Consider alternatives to redundancy

The consultation process should explore whether redundancy can be avoided or reduced. Depending on the circumstances, this may include changes to the proposed structure, alternative work, suitable vacancies, retraining or other practicable measures. The letter establishes the opportunity for those discussions without promising a particular outcome.

Maintain a fair and transparent process

The template can be adapted to the organisation's redundancy policy, consultation arrangements and individual circumstances. Employers should keep appropriate records, communicate consistently and seek HR or legal advice where collective consultation, selection criteria, suitable alternative employment or other complex issues may arise.

Best in class example

A business is considering restructuring its customer service department following a reduction in demand and a proposal to combine some responsibilities. One employee's role may no longer be required in its current form. The business reviews the proposal and confirms that consultation is required before any final decision is made.

The manager sends the employee a notice of possible redundancy letter explaining the proposed changes, the business reasons and the invitation to an initial consultation meeting. The letter confirms that the employee's role is at risk, but that no decision has been made.

At the meeting, the employee asks whether their responsibilities could be incorporated into a revised role and whether a vacancy elsewhere in the business might be suitable. The manager records the suggestions and refers them to HR for genuine consideration alongside other alternatives.

Following consultation, the business reviews the proposed structure and available vacancies before deciding on the next steps. The employee is kept informed throughout, and any subsequent outcome is communicated separately in writing.

The wider HR process

Related HR resources and workflow

Explore the HR resources that may be relevant before and / or after using the Notice of a possible redundancy letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.

Previous
Scripts
Redundancy proposal meeting script

Use this model template as a script for holding a meeting to communicate a proposed redundancy situation, either with an individual or collectively.

This
Notice of a possible redundancy letter
Next
Letters
Redundancy consultation information letter

When you commence redundancy consultation, send this model letter to an employee to explain the redundancy process from start to finish.

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Implementation guidance

Use these best practice actions, recommended timescales and process stages to understand when and how the Notice of a possible redundancy letter should be used, helping ensure each step is handled consistently and appropriately documented.

Step Description Responsibility Timing (Days from Issue)
1 Confirm the business rationale, the roles potentially affected, the proposed changes and whether individual or collective consultation requirements apply. Review relevant policies and obtain HR or legal advice where necessary. Senior management and HR Days -10 to -5
2 Prepare and check the letter, ensuring that the proposal is accurately described, no final decision is implied and the consultation arrangements are clear. HR or the responsible manager Days -5 to -1
3 Issue the letter and arrange an initial private consultation meeting. Allow reasonable time for the employee to read the information and prepare questions. HR or the responsible manager Day 0; meeting date confirmed in the letter or separately
4 Conduct consultation, listen to the employee's concerns and consider suggestions, alternatives to redundancy, selection arrangements where relevant and suitable alternative work. Manager and HR Days 3 to 14 as an indicative starting period; extend as necessary to ensure meaningful consultation
5 Review the consultation evidence and alternatives before making any decision. Communicate the next steps or outcome separately, keeping appropriate records throughout. Senior management and HR After meaningful consultation has concluded; no fixed day applies
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Common mistakes

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.

  • Making the decision before consultation. The letter must describe a genuine proposal and leave the outcome open until consultation has been meaningfully completed.
  • Giving insufficient information. Explain the business reasons, the proposed changes and why the employee's role may be affected.
  • Treating consultation as a formality. Give the employee a genuine opportunity to raise concerns and suggest alternatives, and consider those suggestions carefully.
  • Overlooking collective consultation. Check the number of proposed redundancies, relevant establishment and applicable statutory requirements before proceeding.
  • Failing to consider alternatives. Explore ways to avoid or reduce redundancies and consider suitable alternative vacancies where relevant.
  • Using the letter as a dismissal notice. A notice of possible redundancy is not confirmation of dismissal. Any final outcome or contractual notice should be communicated separately when appropriate.
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HR considerations

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

A notice of possible redundancy letter should form part of a fair and genuine consultation process. It is not a dismissal notice and should not communicate a final decision before consultation has taken place. Employers should check the applicable legal requirements, employment contracts, redundancy policy and any collective consultation obligations before issuing the letter.

Individual consultation

Employers should consult affected employees before making final redundancy decisions. Consultation should explain the proposed changes and their reasons, explore ways to avoid or reduce redundancies, and consider employee suggestions. There is no fixed statutory duration for individual consultation, but it must be meaningful and take place while proposals remain open to genuine consideration. See ACAS guidance at https://www.acas.org.uk/manage-staff-redundancies/redundancy-consultations and https://www.gov.uk/redundancy-your-rights/consultation.

Collective consultation

Where an employer proposes to make 20 or more employees redundant at one establishment within 90 days, collective consultation requirements may apply. These involve consultation with recognised trade union representatives or elected employee representatives, alongside individual consultation as appropriate. Employers must also notify the Redundancy Payments Service within the required timescales. From 6 April 2026, the maximum protective award for failure to comply with collective consultation requirements increased to 180 days' pay per affected employee. Check the current requirements at https://www.acas.org.uk/collective-consultation-redundancy and https://www.gov.uk/staff-redundant/redundancy-consultations.

Selection and alternatives to redundancy

Where employees need to be selected from a pool, employers should establish fair and objective selection criteria and explain the proposed process. Consultation should consider alternatives to redundancy, including changes to the proposal, voluntary redundancy where appropriate, suitable alternative vacancies and other practicable ways to avoid dismissals. Particular legal protections may apply to some employees, including certain employees who are pregnant or on or recently returned from family-related leave. Seek HR or legal advice where relevant.

Equality and fairness

Redundancy proposals and selection decisions must not unlawfully discriminate. Employers should consider whether proposed changes or selection criteria could disadvantage employees because of a protected characteristic and obtain appropriate advice where necessary. Records should explain the business rationale and how representations and alternatives have been considered.

Letter wording and records

The letter should identify the proposal, explain why the employee's role may be affected, confirm that no final decision has been made and explain the consultation arrangements. Keep a record of the letter, meetings, questions raised, alternatives considered and the employer's response. The wording should reflect the actual proposal and must not imply that consultation is a formality.

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FAQs

What is a notice of possible redundancy letter?

It is a formal letter informing an employee that their role may be affected by proposed organisational changes. It explains the reasons for the proposal and begins or supports the consultation process. It should make clear that no final redundancy decision has been made.

Is a notice of possible redundancy the same as a redundancy notice?

No. A notice of possible redundancy explains that a role is at risk and invites consultation. A redundancy dismissal notice is issued later, where appropriate, after the employer has completed the necessary process and made a decision. The contractual or statutory notice period should not be confused with the consultation period.

How much notice should an employee receive before a redundancy consultation meeting?

There is no single statutory notice period for an individual redundancy consultation meeting. Employers should give reasonable time for the employee to read the information and prepare. Check the employment contract, relevant policies and any applicable collective consultation arrangements. Consultation must be meaningful rather than simply a meeting held after the decision has already been made.

What should be discussed during redundancy consultation?

Discussion should cover the reasons for the proposal, ways to avoid or reduce redundancies, relevant selection arrangements, employee concerns and possible alternatives, including suitable alternative work. Employers should consider suggestions genuinely and keep appropriate records of the discussion and their decisions.

Why use HRDocBox?

HRDocBox provides customisable HR templates designed for UK employers. This letter gives employers a structured starting point for communicating redundancy proposals clearly and beginning consultation, while allowing the wording to be adapted to the circumstances and the organisation's procedures.

Why use HRDocBox rather than asking AI?

A dedicated HRDocBox template provides a structured document with key consultation points and wording that can be adapted to your organisation. AI can help tailor a letter to a particular situation, but the content still needs checking for legal accuracy, procedural fairness and consistency with the facts. Employers remain responsible for ensuring that consultation is genuine and legal requirements are met.

How this content is developed and reviewed

The Notice of a possible redundancy 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.

About the author

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.

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"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."

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