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Salary reduction proposal to avoid redundancy letter template

Salary reduction proposal to avoid redundancy letter template

£7.90

If you have proposed a salary reduction as an alternative to redundancy, send this model letter to them to confirm the proposal and request their agreement.

Document

Access 12 months (includes updates)
Coverage UK-specific accuracy
Length 326 words · 2 pages
Last updated 16/09/2025
Formats Word · text · email
Delivery Instant download

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Email

[Sender name]

[Sender address]

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

I refer to my meeting with you on [date], during which we discussed whether you would be willing to agree to a reduction in your current basic salary level. The proposed salary reduction would be [insert details, such as a percentage or a fixed amount][, and it would be in effect for [insert duration, such as three months or six months]]. We understand that a salary reduction is a significant change, and we want to assure you that we will do everything we can to minimise the impact on your finances.

As I explained to you, due to

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Use

A salary reduction proposal to avoid redundancy letter is used to inform employees that the company is exploring alternatives to potential redundancies in the way of a permanent or temporary reduction in salaries. The letter aims to explain the proposal in detail, including the percentage or fixed amount of the proposed salary reduction and the duration of the proposed reduction (if temporary).

The purpose of the letter is to encourage employees to consider the proposal and to provide them with an opportunity to ask questions and express concerns. The letter is intended to be transparent about the financial challenges facing the company and to seek the input and cooperation of employees in finding a solution that works for everyone.

Ultimately, the purpose of the letter is to avoid redundancies and to support employees during a challenging time. The letter communicates the company's commitment to finding alternatives to job losses and to working collaboratively with employees to find a solution that is fair and reasonable for all parties involved.

Workflow

Check which resources should be implemeted before and/or after the Salary reduction proposal to avoid redundancy letter template, to understand the workflow.

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Frequently Asked Questions

Can I use this in my small business?

Yes. The Salary reduction proposal to avoid redundancy letter template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.

Is it compliant with 2026 UK employment law?

Absolutely. As with the Salary reduction proposal to avoid redundancy letter template, all of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.

Can I customise it for my organisation?

Yes, we highlight the areas of the Salary reduction proposal to avoid redundancy letter template 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 the Salary reduction proposal to avoid redundancy letter template instantly. Templates are provided in editable Word or Excel format 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 Salary reduction proposal to avoid 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.

Why should I use this Salary reduction proposal to avoid redundancy letter template, and not AI to generate it?

The risk of using a free AI-generated template 'without review' includes your legal exposure, missing context, and no awareness of the wider process, whereas purchasing the Salary reduction proposal to avoid redundancy letter template from us mitigates that risk.

The Salary reduction proposal to avoid redundancy letter template is also included in these bundles:

Redundancy toolkit Redundancy toolkit 36 templates
£34.90

Termination library Termination library 137 templates
£69.90

Full library Full library 773 templates
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