Salary reduction proposal to avoid redundancy letter template

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Documentation sequence

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.

5 minute read • 1 February 2025
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Salary reduction proposal to avoid redundancy letter

[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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What is this for?

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.

Extended guidance

salary reduction proposal to avoid redundancy letter template

Documentation sequence

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Salary reduction proposal to avoid redundancy letter template
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