Voluntary redundancy agreement terms letter template

Voluntary redundancy agreement terms letter template

This template outlines the terms and conditions of a voluntary redundancy agreement, including any relevant financial compensation, notice periods, and other considerations.

£7.90
Specifications
Access 12 months (includes updates)
Length 358 words · 2 pages
Jurisdiction England, Wales and Scotland
Based on UK employment law, ACAS guidance
Last review 01/08/2026
Next review 01/02/2027
Delivery Instant download
Formats .doc · .txt · email

Download .doc

Copy [to paste]

Email
Template

[Sender name]

[Sender address]

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

Voluntary redundancy confirmation

Following the meeting held on [date] to discuss our acceptance of your application for voluntary redundancy, we now wish to confirm the details of the termination of your employment. We agreed:

  • the date of termination, which will be [date];

  • that this termination date means that you will work [your full/part of your] notice period, your notice period being [number of weeks/months];

  • that you will be paid for [part of] your notice period in lieu of your working out that [part of the] notice period, which in your case means that the amount payable will be £[amount];

  • that you will [take

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What is a voluntary redundancy agreement terms letter?

The purpose of a Voluntary Redundancy Agreement Terms Letter Template is to outline the terms and conditions of a voluntary redundancy agreement between an employer and an employee who has chosen to leave their employment voluntarily. The template serves as a written record of the agreement and ensures clarity and understanding between the parties involved. Some of the key purposes of a Voluntary Redundancy Agreement Terms Letter Template are:

  1. Documenting the agreement: The template serves as a formal document that clearly outlines the terms, conditions, and details of the voluntary redundancy agreement. It ensures that both the employer and the employee have a shared understanding of the agreement and can refer back to it if needed.

  2. Establishing the terms and conditions: The letter template specifies the terms and conditions of the voluntary redundancy, including the amount of redundancy payment, any additional benefits or compensation, notice period, and any other relevant provisions. It helps to establish a clear framework for the agreement.

  3. Ensuring legal compliance: The template ensures that the voluntary redundancy agreement complies with relevant employment laws and regulations. It helps to incorporate the necessary legal requirements and protections, such as adherence to redundancy payment legislation and non-discrimination provisions.

  4. Clarifying rights and responsibilities: The letter template clearly communicates the rights and responsibilities of both the employer and the employee in relation to the voluntary redundancy agreement. It helps to avoid misunderstandings or disputes by providing a written reference for the agreed-upon terms.

  5. Protection for both parties: By documenting the voluntary redundancy agreement in writing, the template helps protect the rights and interests of both the employer and the employee. It provides a reference point in case of any future disagreements or disputes that may arise.

The wider HR process

Related HR resources and workflow

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

Previous
Letters
Voluntary redundancy application accepted letter

If you have accepted an application for voluntary redundancy, send this model letter to the employee to confirm the outcome.

This
Voluntary redundancy agreement terms letter
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Compliance

UK employment law and best practice

  • Employment Rights Act 1996: Provides the legal framework for employee rights, including provisions for voluntary redundancy, consultation, and notice periods.

  • Redundancy Payments Act 1965: Establishes the right to receive statutory redundancy payments for eligible employees who voluntarily accept redundancy.

  • Equality Act 2010: Prohibits discrimination, including in voluntary redundancy processes, based on protected characteristics such as age, disability, gender, race, religion, or sexual orientation.

  • Employment Equality (Age) Regulations 2006: Provides specific protection against age discrimination in relation to voluntary redundancy.

  • Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000: Ensures that part-time workers are not treated less favorably in voluntary redundancy processes compared to their full-time counterparts.

  • ACAS Code of Practice on Handling Redundancy: Although not legally binding, this code provides guidance on fair and effective redundancy processes, which can be useful when implementing voluntary redundancy programs.

  • Employment contract and terms: The terms and conditions outlined in the employee's contract, including provisions for redundancy, notice periods, and any specific agreements related to voluntary redundancy, should be taken into account in the agreement letter.

UK employment law guidance for Voluntary redundancy agreement terms letter template

Related Redundancy HR templates

Frequently Asked Questions

Can I use this in my small business?

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.

Is it compliant with 2026 UK employment law?

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.

Can I customise it for my organisation?

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.

Do I get instant access to it?

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.

What if I need more help, not just this template?

If you're looking for broader support, we also offer toolkits and library bundles that include the Voluntary redundancy agreement terms 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.

Why should I use this Voluntary redundancy agreement terms letter template, and not AI to generate it?

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.

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 processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

Executive recommendation

"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."

RB
Ruth Brock Chief Executive Officer The Hygiene Bank
The Voluntary redundancy agreement terms letter template is also included in these bundles:

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