Redundancy at risk letter template

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

An at risk letter forms part of the wider redundancy process and should support genuine consultation rather than present a final decision. Acas guidance states that employers should tell affected employees as soon as possible when redundancies are being considered and, for employees at risk, confirm in writing that they are at risk, explain possible alternatives and outline the consultation plans. :contentReference[oaicite:1]{index=1}

Make clear that redundancy is only proposed

The wording of an at risk letter matters. At this stage, the employee should understand that their role is potentially at risk and that consultation is taking place. Describing the employee as redundant or confirming their dismissal before consultation has taken place can undermine the credibility of the process.

Acas advises that employers should consult before making a final decision about redundancies. Consultation should involve listening to employees and genuinely considering their suggestions, including proposals that could avoid or reduce redundancies. :contentReference[oaicite:2]{index=2}

Explain the reason for the proposed redundancy

Employees should be given enough information to understand why their role is at risk. This might include reduced demand, financial pressures, restructuring, closure or changes to the way work is organised.

The explanation does not need to predict the final outcome, but it should provide a meaningful basis for consultation. Acas recommends discussing the proposed changes, why they are needed and ways of avoiding or reducing redundancies. :contentReference[oaicite:3]{index=3}

Explain what happens next

A good at risk letter should give the employee a clear understanding of the next stage, including how and when consultation will take place. This helps prevent uncertainty and gives the employee a reasonable opportunity to prepare questions and suggestions.

Where selection criteria or a selection pool are relevant, these should be addressed as part of the consultation process. Acas recommends that selection criteria are as objective and measurable as possible and are applied consistently across the selection pool. :contentReference[oaicite:4]{index=4}

Consider alternatives

Redundancy should not be treated as the only possible outcome. Employers should consider whether redundancies can be avoided or reduced, including through measures such as voluntary redundancy, changes to working arrangements or suitable alternative employment where appropriate.

Acas specifically recommends discussing alternatives and ways of avoiding or reducing redundancies during consultation. The at risk letter therefore works best when it opens the door to those discussions rather than simply announcing a predetermined outcome. :contentReference[oaicite:5]{index=5}

Individual and collective consultation

Where fewer than 20 redundancies are proposed, there are no specific statutory minimum consultation periods for individual consultation, but employers should still carry out genuine and meaningful consultation. GOV.UK states that failing to consult properly can result in an unfair dismissal claim. :contentReference[oaicite:6]{index=6}

Where 20 or more redundancies are proposed at one establishment within a 90-day period, the collective redundancy consultation rules under the Trade Union and Labour Relations (Consolidation) Act 1992 may apply. Employers must also consider the separate notification requirements that apply to collective redundancies. :contentReference[oaicite:7]{index=7}

Good HR practice

The letter should be consistent with what has been communicated verbally and with the wider redundancy documentation. HR should avoid unnecessarily alarming language, provide enough information to allow meaningful discussion and ensure managers understand that being "at risk" is not the same as having been selected for redundancy.

It is also good practice to maintain a clear record of the consultation process, including the information provided to employees, questions raised, alternatives considered and any changes made as a result. This creates a more transparent process and provides useful evidence of how decisions were reached.