Your browser does not support JavaScript

Pay or salary freeze notification letter template

£ 15

Our Pay or Salary Freeze Notification Letter Template helps communicate temporary freezes in employee compensation, fostering transparency during challenging times.

If you need to inform an employee that there will be no annual increase in basic salary as a result of a pay freeze, issue this model letter template as notification.

Reading time
How long to understand and prepare this letter?
5 mins
Get much more value with a cost-effective collection (all include this Pay or salary freeze notification letter template and many more templates):

Complete package
603 templates
£ 125
Management library
374 templates
£ 100
Pay and benefits toolkit
31 templates
£ 35

What is a Pay or salary freeze notification letter?

A pay freeze notification letter informs employees of no salary increase due to various reasons. It outlines the freeze's duration, reasons, and impacts, ensuring transparent communication and compliance with laws and contracts. Addressing concerns and fostering employee understanding helps maintain positive relations amid the freeze.

Best practice timescale for this to be issued
When should this letter be issued?
As and when required
Issued by who, to whom
Who should issue this letter, and to whom?
The Employer (you) to the Employee
Applicable legal jurisdictions
In which jurisdictions can this letter be used?
Great Britain & NI (United Kingdom), Worldwide

What steps should I take to ensure the effective, compliant execution of this letter?

Step Description Responsibility Timing
1 Identify the need for a pay freeze due to economic challenges or other reasons. Management As needed
2 Review employment contracts and relevant laws to ensure compliance with pay freeze implementation. HR and Legal Before drafting
3 Prepare the Pay Freeze Notification Letter outlining reasons, duration, and impacts. HR Before sending
4 Issue the letter to all affected employees, providing a clear explanation and offering a Q&A session. HR Upon preparation
5 Address employee inquiries, concerns, and ensure transparency throughout the pay freeze period. HR and Management During the freeze

What legislation or best practices underpin this template / should I be aware of?

United Kingdom

When issuing a pay freeze notification letter in the UK, employers should consider several key employment laws to ensure that they are acting fairly and legally. Some of the key employment laws to consider include:

  1. The Employment Rights Act 1996: This act sets out the rights and responsibilities of employees and employers, including the right of employees to receive notice of any changes to their pay. When issuing a pay freeze notification letter, it is important to ensure that the employee is given appropriate notice and that the notice is provided in writing.

  2. The Equality Act 2010: This act prohibits discrimination, harassment, and victimization on the basis of various protected characteristics, such as age, race, gender, and disability. When issuing a pay freeze notification letter, it is important to ensure that the pay freeze is applied fairly and does not discriminate against any particular group of employees.

  3. The National Minimum Wage Act 1998: This act sets out the minimum wage rates that must be paid to employees. When issuing a pay freeze notification letter, it is important to ensure that any pay freeze does not result in employees being paid below the minimum wage rates.

  4. The Employment Equality (Age) Regulations 2006: These regulations prohibit age discrimination in the workplace, including in relation to pay. When issuing a pay freeze notification letter, it is important to ensure that any pay freeze does not discriminate against employees on the basis of their age.

  5. The terms of the employment contract: When issuing a pay freeze notification letter, it is important to consider the terms of the employment contract, including any provisions relating to pay and any consultation requirements.

By considering these key employment laws when issuing a pay freeze notification letter, employers can ensure that they are acting fairly and legally and protecting the rights of their employees.


Other territories

Refer to your local employment legislation / labor laws to support the execution of the template. Review the wording for local accuracy.

Letter template

Pay or salary freeze notification [Delete this line]


[Company name]

[Sender address]

 

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

 

Pay freeze

We refer to clause [number] of your contract of employment which provides for [an/a discretionary] annual review of your salary in [month].

As you may be aware, there has been a recent downturn in the Company's business as a result of external economic factors.

Unfortunately, as a direct result of this, the Company has been forced to implement a pay freeze for [all | a number of categories of] staff for the current year.

Therefore, we must now advise you that there will be no change to your salary in this year's pay review. Your salary will remain at £[amount] per [hour/week/annum].

[The next annual pay review will be in [month and year].

OR

The Company is unable to confirm the date of the next salary review but will keep you informed in this regard.]

We understand that this will be disappointing news and we regret that this situation has occurred. It was not a decision that we came to lightly but was made after careful consideration of all relevant information. We are hopeful that the situation will improve soon.

If you wish to discuss any aspect of this letter, please do not hesitate to contact [name].

Yours [faithfully | sincerely],

 

 

[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]

This is a preview. Access to the remainder requires a purchase.
Why choose our Pay or salary freeze notification letter template?
  • It's easily editable and implementable, saving you time and money
  • It's designed by CIPD accedited Chartered HR practitioners with operational experience in this area
  • You will maintain compliance with ACAS guidelines, legislation, and industry best practices
What other advantages does buying from hrdocbox.co.uk offer?
  • Email notifications for any updates made to this template or its accompanying materials
  • 12 months of unrestricted access without any additional costs (any update in that period is free to you)
  • Complimentary HR advice and support via email for 28 days upon purchase
  • A 25% discount on all library, toolkit, and template purchases/renewals
Pay or salary freeze notification letter template
pay or salary freeze notification letter template

What do our customers say about us?

I have just renewed our membership for another year for HRdocbox. It's an extremely useful resource with a wide variety of documents and knowledge...

- Rachel Masing, ETM Group
★★★★★

ETM Group logo

Read full review on Google

I have been using the service now for around 6 months and it has been really useful in developing and updating polices and processes.

- Jamie Allan, Armstrong Craven
★★★★★

Armstrong Craven logo

Read full review on Google

Excellent library of resources and templates which have made my job in my small business so much easier to manage HR for my employees...

- Emma Hunt
★★★★★

Read full review on Google

Great value and the site contains an extensive library of essential HR documents. I access the site probably once a week...

- Laura Alliss-Etty
★★★★★

Read full review on Google

HRDocBox is a great resource. It is incredibly good value, providing a large selection of HR guidance materials as well as...

- Emma Beauchamp
★★★★★

Read full review on Google

Guide to Calculating Holidays for Part-Time Workers
Thu, 28 Mar 24

Guide to Calculating Holidays for Part-Time Workers

Practical help to navigate the complexities of holiday entitlements

As we approach late March, HR managers often find themselves immersed in the task of calculating holiday entitlements for part-time workers...