Redundancy consultation information letter template4 min read
When you commence redundancy consultation, send this model letter to an employee to explain the redundancy process from start to finish.
It also includes the most frequently asked questions with answers. This gives the employee something to refer back to after the initial redundancy warning meeting and prevents a barrage of questions to the managers.
What is a Redundancy consultation information letter?
This Redundancy Consultation Information Letter serves as a comprehensive document to communicate essential details during redundancy consultations.
It provides employees with information on the redundancy process, including timelines, selection criteria, and support available.
This letter ensures transparency, keeping employees informed and engaged throughout the consultation process, fostering a fair and respectful approach to workforce changes.
What legal and best practice aspects should employers be aware of?
You must consult with your employees before finalising any redundancies.
If you do not hold genuine and meaningful consultation before making redundancies, employees could claim to an employment tribunal for unfair dismissal.
Consultation is when you talk and listen to affected employees. In collective consultation you also consult with their representatives.
You should use consultation to try and agree actions wherever possible, for example the selection criteria.
During consultation, you should discuss:
- the changes that are needed, what you plan to do, and why
- ways to avoid or make fewer redundancies
- the skills and experience needed for the future
- the criteria for selecting employees for redundancy
- any concerns employees may have
- how you can support and arrange time off for affected employees, for example to update their CVs and get training
You do not need to reach an agreement for consultation to end. Consultation should be meaningful and you should be able to show you have genuinely considered any suggestions or points made by each employee, even if you do not accept them.
Redundancy consultation information [Delete this line]
Dear [Recipient first name],
Throughout the course of the consultation process we will keep you informed at every stage of the process. This will be carried out through individual consultation meetings with your Line Manager or a member of the management team.
To assist the information process throughout the consultation we have produced a guide as follows which will hopefully answer some of the questions you may have at this stage.
- Whilst the consultation process is taking place you will remain on full pay.
- Advice will be available to help with writing a CV and putting application letters together should it be required.
- To be entitled to redundancy pay you must have two years continuous service.
Announcement of intended redundancies
All affected employees will attend a meeting and receive an individual letter explaining the proposal to consider redundancies or other alternatives to reduce the employment cost base.
During this meeting possible options will be discussed and there will be an opportunity to ask any questions.
Individual consultation meetings
Every employee will have a minimum of [one | two] consultation[s] with their Line Manager or a member of the management team; these will be held on a one-to-one basis.
The purpose of these meetings is to keep you fully informed of any progress being made by the company in their decision regarding reducing employment costs and also to give you the opportunity to ask any questions you may have throughout the process.
Confirmation of redundancies
In the unfortunate event that your position is to be made redundant you will receive a letter at your home address confirming your redundancy entitlement, date of termination and letting you know when payment is to be made.
You will be given the right to appeal this decision within 5 working days of receipt of the letter.
Please remember that redundancies will only be made as a last resort, and if any, will only be made in minimal numbers.
Questions and Answers
Is redundancy pay taxable?
The first £30,000 redundancy element is not taxable and is also exempt from NI contributions. Payments in excess of this amount would be subject to tax and NI.
Is payment in lieu of notice taxable?
The Inland Revenue treats this is as earnings and, therefore, is subject to tax and NI.
How much redundancy pay would I be entitled to?
These figures will be discussed with you in your consultation meeting in the unfortunate event of your role being made redundant.
Everyone is entitled to their formal notice period, which is found in your Terms and Conditions of Employment. If you are not asked to work this notice period then it will be paid in lieu.
Generally employees who have less than 2 years service are not entitled to statutory redundancy pay.
If I am made redundant what happens?
The date that your employment will finish will be confirmed to you in writing.
You will receive written confirmation that your position has been made redundant which you may need should you wish to claim unemployment benefit.
Any other payment due to you such as outstanding holiday pay will be received in your final salary payment, which will be paid via the normal payroll system on the next appropriate pay date.
Can I still apply for jobs, which may come up internally?
Yes, all employees who are made redundant involuntarily may apply for internal jobs in the usual way.
If I get alternative employment internally, will I be given a new contract?
If you remain in employment with us your service will be continuous and will be documented via an Employee Change letter.
If you re-join the company after being made redundant there is a break in service and a new contract would then be issued.
If I move to an alternative location/position, but do not like it, do I receive redundancy pay?
Both parties have up to 4 weeks from commencement of the role to see if things are working out, during that trial period at any stage, each can enact the redundancy process. The employee will still be entitled to the redundancy package on the date that they leave the business within the 4 week trial period.
Will there be any assistance given to me to help find jobs outside of the Company?>
The Company can provide advice and support on how to search for jobs, write letters/CVs etc. which will be discussed during your one to one consultation meeting.
Am I allowed time off for interviews during the consultation process?
Yes, if you are in consultation for the potential redundancy of your role. Where it is not possible to go for an interview during your normal time off please try and give your Manager as much notice as possible and have a supporting interview invitation where possible.
If I am offered a job or elect to leave before the redundancy process takes place, will it affect my payments?
If you leave or hand in your notice prior to the completion of the redundancy process, you will lose your redundancy entitlement. This would be treated as a resignation and your normal terms and conditions of employment would still apply.
Yours [faithfully | sincerely],
[Sender job title]
Notice of a possible redundancy letter template
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.
Redundancy questionnaire form template
Our Redundancy Questionnaire Form template gathers essential information from employees, ensuring thorough understanding and compliance.
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