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Invitation for voluntary redundancy applications letter

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Our Invitation for Voluntary Redundancy Applications letter template encourages employees to apply for voluntary redundancy while maintaining a fair process.

If you wish to invite voluntary redundancy applications, send this model letter as an invitation for employees to apply, and to set out the proposed terms.

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10 mins
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What is an Invitation for voluntary redundancy applications letter?

An invitation for voluntary redundancy applications letter is a formal document used by an employer to inform employees that they have the opportunity to apply for voluntary redundancy.

Voluntary redundancy occurs when an employer offers employees the opportunity to voluntarily leave their employment in exchange for a financial package. This is typically done when the employer needs to reduce their workforce, but wants to avoid compulsory redundancies.

The invitation for voluntary redundancy applications letter typically includes information about the terms of the voluntary redundancy package, such as the amount of compensation that will be offered and any other benefits that may be available. The letter may also include information about the eligibility criteria for applying for voluntary redundancy, such as the length of service with the employer or any specific skills or roles that are being targeted for redundancy.

The purpose of the invitation for voluntary redundancy applications letter is to inform employees of the opportunity to apply for voluntary redundancy and to provide them with all the necessary information they need to make an informed decision about whether to apply. The letter may also serve as a way for the employer to demonstrate their commitment to treating employees fairly and with respect during a difficult period of change.

Best practice timescale for this to be issued
When should this letter be issued?
As soon as possible after a decision is made to accept applications
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?

There are several key employment laws that employers in the UK should consider when issuing an invitation for voluntary redundancy applications letter. Here are some of the most important ones:

  1. 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. Even if an employee has voluntarily applied for redundancy, an employer must still follow a fair and transparent selection process to ensure that any resulting redundancy is fair.

  2. 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 voluntary redundancy selection process does not discriminate against employees on any of these grounds.

  3. The ACAS Code of Practice on Settlement Agreements: This code provides guidance on good practice for negotiating and agreeing on settlement agreements, which may be used to facilitate voluntary redundancy. Employers should aim to follow this code to ensure that their procedures are fair and reasonable.

  4. 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 voluntary redundancy do not breach these regulations.

  5. The National Minimum Wage Act 1998: Employers must ensure that any payments made to employees as part of a voluntary redundancy scheme comply with the National Minimum Wage regulations.

Invitation for voluntary redundancy applications [Delete this line]

[Company name]

[Sender address]



[Recipient name]

[Recipient address]


Dear [Recipient first name],


Invitation for voluntary redundancy applications

Thank you for attending the [group/department/team] meeting that took place on [date]. As we informed you at that meeting, it is regrettably inevitable that the reorganisation of [Company]'s business and activities will result in redundancies. We anticipate that it will be necessary to make [number] employees redundant in [[Company] as a whole/the department in which you work].

As a first step, [Company] wishes to invite employees to consider whether to apply for voluntary redundancy. The terms available to those who apply and are accepted for voluntary redundancy are [set out in the schedule/available from [name of individual]]. You can also contact [name of individual] if you would like to discuss being made voluntarily redundant (for example, issues such as how this will affect your pension entitlement).

If you would like to be considered for voluntary redundancy, please complete and sign the [attached] application form and return it to [name] before [date]. [Company] reserves the right, however, to decide whether or not to accept an employee's application for voluntary redundancy.

[Company] will see how many individuals wish to take up voluntary redundancy and decide on an individual basis if it will accept those applications. It is only after this has been done that it will go on to consider whether or not it is necessary to proceed with compulsory redundancies.

If [Company] still needs to make compulsory redundancies, the criteria for selection will be as follows:

[List here the objective criteria for redundancy selection and how they will be implemented.]

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
Final individual redundancy consultation meeting invitation letter template

If you need to conclude consultation with a provisionally selected employee, send this model redundancy consultation final meeting invitation letter template.

This step
Invitation for voluntary redundancy applications letter template
Next step
Voluntary redundancy application form template

This form enables employees to formally submit their voluntary redundancy applications, capturing necessary details and declarations.

Invitation for voluntary redundancy applications letter
invitation for voluntary redundancy applications letter