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Notice of a possible redundancy letter

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If you are considering a possible redundancy, send this model letter template to provide notice of the situation and the reasons why it is under consideration.

Reading time
How long to understand and implement this letter?
10 mins
Word count
How many words in this letter?
271
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What is a Notice of a possible redundancy letter?

A Notice of Possible Redundancy letter is a written communication from an employer to an employee, indicating that their job may be at risk of redundancy. It is typically issued when an organisation is going through a process of restructuring or downsising, and there is a possibility that some employees' roles may become redundant.

The purpose of the letter is to inform the employee of the situation and to invite them to attend a meeting to discuss the potential redundancy and explore alternative options, such as redeployment or retraining.

The letter should include information on the reasons for the potential redundancy, the selection criteria that will be used to determine which employees will be affected, and the consultation process that will be followed.

It is important to note that a Notice of Possible Redundancy letter does not necessarily mean that the employee will be made redundant. It is an initial step in the redundancy process, and the employee has the right to be consulted and to explore alternative options before any final decision is made.

Best practice timescale for this to be issued
When should this letter be issued?
As early as possible, as this allows the employee to prepare for the possibility of redundancy and explore alternative employment options if necessary
Issued by who, to whom
Who should issue this letter, and to whom?
The Employer (you) to the Employee
Applicable legal jurisdiction
In which jurisdiction can this letter be used?
Great Britain & NI (United Kingdom)

What legislation and best practice guidelines have been taken into account in the development of this template?

  • The Trade Union and Labour Relations (Consolidation) Act 1992: This act sets out the legal framework for collective consultation in the event of redundancies. If an employer is proposing to make 20 or more employees redundant within a 90-day period, they must engage in collective consultation with any trade union or employee representatives.

  • The Employment Rights Act 1996: This legislation outlines the rights of employees in relation to redundancy, including the requirement for employers to consult with affected employees. Employers must provide information on the reasons for the proposed redundancies, the number of employees likely to be affected, and the proposed selection criteria.

  • The Equality Act 2010: This act prohibits discrimination on the grounds of certain protected characteristics, such as age, gender, race, disability, and sexual orientation. Employers must ensure that their redundancy selection process does not discriminate against employees on any of these grounds.

  • The Working Time Regulations 1998: This legislation sets out the maximum number of hours that employees can work each week, as well as minimum rest breaks and annual leave entitlements. Employers must ensure that any changes to working patterns or hours as a result of redundancy do not breach these regulations.

Before starting a redundancy process, you should consider all options to reduce or even avoid redundancies.

For example, you could see if you can:

  • offer voluntary redundancy
  • change working hours
  • move employees into other roles
  • let go of temporary or contract workers
  • limit or stop overtime
  • not hire any new employees

Notice of a possible redundancy [Delete this line]

[Company name]

[Sender address]

 

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

 

Notice of Possible Redundancies

[Further to our recent meeting, ]As part of an ongoing review of the business, we have found it necessary to consider our employment cost base. In order for the business to survive we must adhere to a low cost operating policy to provide the foundations for our ongoing success as a business.

Due to current market conditions and specifically [insert specific conditions], we have to consider different ways in which we can reduce our costs. Unfortunately this could potentially include a number of redundancies.

This letter is to ensure that all employees are fully aware of the reasons for the potential reduction in numbers and for us to inform people at the earliest opportunity. We will shortly be holding consultation meetings on a one-to-one basis with all of our employees to discuss the areas where redundancies may be applicable within the business.

[Rather than make compulsory redundancies, I would like to take this opportunity to ask for volunteers for redundancy, however I must add that the Company reserves the right not to accept certain volunteers on the basis of protecting the Companys future interests. If you wish to be considered as a volunteer please complete the attached form and forward to me in the first instance.]

Please be assured that we have considered this very seriously; redundancies and any other alternatives which may impact our employees are always a last resort.

The [individual] consultation meetings will be starting in the next [3 | 5 | 7] days, but in the meantime if you have any queries regarding this please do not hesitate to contact a member of the senior management team.

Yours [faithfully | sincerely],

 

 

[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]

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In which communication or process sequence does this template belong?

Previous step
Scripts
Redundancy proposal meeting script

Use this model template as a script for holding a meeting to communicate a proposed redundancy situation, either with an individual or collectively.

This step
Notice of a possible redundancy letter template
Next step
Letters
Redundancy consultation information letter template

When you commence redundancy consultation, send this model letter to an employee to explain the redundancy process from start to finish.

notice of a possible redundancy letter