Notice of a possible redundancy letter template
Supporting information
If you are considering a possible redundancy, send this model letter template to provide notice of the situation and the reasons why it is under consideration.
Notice of a possible redundancy letter
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[Company name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Notice of Possible Redundancies
[Further to our recent meeting, ]As part of an ongoing business review, we have found it necessary to evaluate our employment cost base to ensure the survival and future success of our company.
Given the current market conditions, specifically [insert specific conditions], we need to explore various ways to reduce our costs. Regrettably, this may include potential redundancies.
We are sending this letter to ensure all employees are aware of the reasons for the potential reductions and to inform everyone as early as possible. We will soon hold one-to-one consultation meetings with all employees to discuss areas where redundancies might be necessary.
[Rather than proceeding with compulsory redundancies, we would like to invite volunteers for redundancy. However, please note that the company reserves the right to decline certain volunteers to safeguard our future interests. If you wish to volunteer, please complete the attached form and forward it to me.]
Rest assured, we have considered this matter very seriously, and redundancies and other measures that affect our employees are always a last resort.
The individual consultation meetings will begin in the next [3 | 5 | 7] days. In the meantime, if you have any questions, please do not hesitate to contact a member of the senior management team.
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Protected before purchase.
Yours [faithfully | sincerely],
[Sender name]
[Sender job title]
[Sender telephone]
[Sender email]
[For, and on behalf of [Company name] ]
What is this for?
A Notice of Possible Redundancy letter informs an employee that their job may be at risk of redundancy. It is typically issued when an organisation is going through a process of restructuring or downsizing, and there is a possibility that some employees' roles may become redundant.
The purpose of the letter is to inform the employee of the situation and to invite them to attend a meeting to discuss the potential redundancy and explore alternative options, such as redeployment or retraining.
The letter should include information on the reasons for the potential redundancy, the selection criteria that will be used to determine which employees will be affected, and the consultation process that will be followed.
It is important to note that a Notice of Possible Redundancy letter does not necessarily mean that the employee will be made redundant. It is an initial step in the redundancy process, and the employee has the right to be consulted and to explore alternative options before any final decision is made.
Extended guidance
Employment law compliance
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The Trade Union and Labour Relations (Consolidation) Act 1992: This act sets out the legal framework for collective consultation in the event of redundancies. If an employer is proposing to make 20 or more employees redundant within a 90-day period, they must engage in collective consultation with any trade union or employee representatives.
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The Employment Rights Act 1996: This legislation outlines the rights of employees in relation to redundancy, including the requirement for employers to consult with affected employees. Employers must provide information on the reasons for the proposed redundancies, the number of employees likely to be affected, and the proposed selection criteria.
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The Equality Act 2010: This act prohibits discrimination on the grounds of certain protected characteristics, such as age, gender, race, disability, and sexual orientation. Employers must ensure that their redundancy selection process does not discriminate against employees on any of these grounds.
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The Working Time Regulations 1998: This legislation sets out the maximum number of hours that employees can work each week, as well as minimum rest breaks and annual leave entitlements. Employers must ensure that any changes to working patterns or hours as a result of redundancy do not breach these regulations.
Before starting a redundancy process, you should consider all options to reduce or even avoid redundancies.
For example, you could see if you can:
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offer voluntary redundancy
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change working hours
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move employees into other roles
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let go of temporary or contract workers
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limit or stop overtime
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not hire any new employees
Documentation sequence
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.
Redundancy consultation information letter template
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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