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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.
[Sender 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
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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.
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.
Use this model template as a script for holding a meeting to communicate a proposed redundancy situation, either with an individual or collectively.
When you commence redundancy consultation, send this model letter to an employee to explain the redundancy process from start to finish.
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.
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.
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.
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:
offer voluntary redundancy
change working hours
move employees into other roles
let go of temporary or contract workers
limit or stop overtime
not hire any new employees
Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.
Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.
Yes, we highlight the areas of the document that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.
If you're looking for broader support, we also offer toolkits and library bundles that include the Notice of a possible redundancy letter template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.
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 processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
"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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