Rejection of settlement offer response letter template
This letter confirms an employee’s rejection of a settlement offer and notifies them that disciplinary or capability proceedings will continue.
- 1 page / 72 words.
- Last updated 22/09/2025.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Rejection of settlement offer response letter
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Re: Settlement Offer
I write to confirm that you have chosen not to accept the settlement offer discussed with you on [date].
As such, the
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This letter formally records that the employee has declined a settlement offer made by the organisation.
It ensures clarity by confirming that the offer is no longer under consideration and that the organisation will continue with its established disciplinary or capability procedures.
Using this letter helps maintain transparency, provides a clear audit trail, and reduces the risk of dispute over the process followed.
It is usually delivered to the Employee by the Employer / HR.
It should be actioned as soon as the employee rejects the offer, so that disciplinary / capability proceedings can continue.
Flowchart
Flowchart
Check which resources should be implemeted before and/or after the Rejection of settlement offer response letter template, to understand the workflow.
Settlement agreement cover letter
Use this model letter when you have reached a settlement agreement with an employee who will be leaving your employment as a result, to enclose the settlement agreement.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Rejection of settlement offer response 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.
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Is this template compliant with 2025 UK employment law?
Absolutely. 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.
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Can I customise it for my organisation?
Yes, we highlight the areas 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.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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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 this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
