For many businesses, redundancy is a difficult situation to approach. Letting talented employees go is tough, but sometimes essential.
We have a redundancy process guide you can refer to for help. But one area you may have questions about is with redundancy notice letters. If you’re looking for a template, we have one here you can use—it’s further below in this guide.
We also provide insights into the processes you need to follow to remain legally complaint.
To help you deal with this international crisis, we’ve opened our HR helplines to give employers affected by COVID-19 access to a free advice call. So, for quick answers to your questions please call us on 0800 028 2420.
What is a redundancy letter?
It’s a written notice that explains why an employee’s role is ending, with an explanation why, along with other details for their remaining time with your business.
When you no longer require an employee for their job, you need to provide a valid reason for making the decision.
- Operational change.
- The arrival of new technology.
- Changes in the market.
- To reduce business costs.
UK law provides employees with protections you must respect. And there are various procedural duties you must follow.
One of these includes writing letters to notify your employee of a redundancy development. After which, you should provide the employee with this formal issue of redundancy.
Keep in mind, you’ll need to notify staff of redundancy developments as you move through the process.
Which includes updating employees by written notices.
However, in the closing process when redundancies are final, you need to make a final notice in writing to affected employees.
So, what do you need to include in your final statement? Let’s take a look.
Sample letter of redundancy from employer
You can download a redundancy letter template in this section. It includes a sample letter of redundancy—the type many businesses write and send to their employees.
Please keep in mind this is a guide only. You should amend the template to meet your business’ requirements, as well as the situation that’s led to a redundancy.
And, also, this is the final letter you should send to employees. You should send prior warnings to staff to ensure they understand the process that is unfolding.
But this template is the redundancy letter once your process is complete.
What should a redundancy letter contain?
There are essential points to cover. The below areas explain how to write a redundancy letter to an employee in the UK:
- An explanation of the situation, along with the reason why they’re selected for redundancy.
- Explain the timeline of the process ahead.
- Offer other available roles if there are any. If not, at least confirm you have reviewed the situation.
- Confirm there are no other ways to avoid the redundancy.
- Include the final date of the employee’s contract.
- Detail the financial entitlements the employee has. Along with when they’ll receive the payments.
One of the most important aspects is to state why their role is ending and your reasoning for this. Explain that point clearly and truthfully. It must be a valid reason.
How Peninsula Business Services can help
Managing redundancies is often a stressful time for employers. It can lead to difficult departures with long-term members of staff.
However, if it’s essential for your business then you have to do it. But complying with employment laws, and following the correct procedures, is a difficult task.
Since 1983, we’ve helped tens of thousands of businesses with their employment contracts and the unfortunate need to end professional relationships.
And that’s especially the case during the coronavirus outbreak—don’t hesitate. Talk to us and we’ll help you understand your standing during the pandemic.
There’s governmental support available, plus our expert HR and employment law consultancy service available for additional support.
Redundancy letters during coronavirus
During the pandemic, your employees have the same rights as before. That includes any actions you must take to end their contract of employment.
Of course, before you take such actions you can claim from the UK Government’s Job Retention Scheme. This’ll help support your business—and staff.
You have the choice to furlough your employees, from which they can claim 80% of their standard monthly wage.
Unfortunately, due to coronavirus you may still have to make redundancies to ensure you can keep doing business.
As such, you’ll have to send a redundancy letter to an employee in the UK.
Do you need help with redundancies?
It’s a difficult and challenging part of every business. But, we’re here to help. Call us and we’ll take you through what you need to do: 0800 028 2420.