Layoff Letter Template for England and Wales

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Key Requirements PROMPT example:

Layoff Letter

"I need a Layoff Letter for making 25 software developers redundant due to the closure of our tech division, with enhanced redundancy packages and outplacement support, to be effective from March 2025."

Document background
Layoff Letters are essential documents in the redundancy process under English and Welsh law. They are used when an organization needs to reduce its workforce due to business restructuring, economic conditions, or operational changes. These letters must carefully balance legal compliance with clear communication, ensuring all statutory requirements are met while maintaining professional relationships. The document should include specific details about the redundancy process, payments, and employee rights as required by UK employment legislation.
Suggested Sections

1. Statement of redundancy: Clear statement that the position is being made redundant and explanation of the business reasons

2. Effective date: The date when employment will terminate and notice period details

3. Payment details: Information about redundancy payment calculation, final salary, and treatment of outstanding benefits

4. Return of company property: Instructions regarding the return of company assets and equipment

5. Reference and communications: Information about future employment references and internal/external communications

Optional Sections

1. Alternative employment: Details of any alternative positions available within the organization and redeployment process

2. Garden leave: Terms and conditions of garden leave if the employee is not required to work their notice period

3. Outplacement support: Information about career transition support services offered by the company

4. Collective consultation: Information about collective consultation process, used when 20+ employees are being made redundant

Suggested Schedules

1. Redundancy Payment Calculation: Detailed breakdown of statutory and/or enhanced redundancy payment calculation

2. Benefits Summary: Comprehensive summary of the treatment of various benefits upon termination

3. Settlement Agreement: Draft settlement agreement if enhanced redundancy package is offered subject to signing

4. Handover Schedule: Template for documenting handover of responsibilities and ongoing projects

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Primary legislation establishing redundancy framework, including statutory redundancy pay calculations, legal definition of redundancy, and minimum notice period requirements

Trade Union and Labour Relations (Consolidation) Act 1992: Governs collective consultation requirements, especially for large-scale redundancies (20+ employees within 90 days), including obligation to notify Secretary of State via HR1 form

Equality Act 2010: Ensures redundancy selection criteria are non-discriminatory, protecting against unfair selection based on protected characteristics and requiring consideration of reasonable adjustments for disabled employees

ACAS Code of Practice: While not legislation, provides crucial guidance considered by tribunals and sets out best practices for fair redundancy procedures

TUPE Regulations 2006: Protects employees' rights during business transfers, including specific provisions relating to redundancies in transfer situations

Fair Selection Process: Legal requirement to use objective and fair selection criteria when choosing employees for redundancy, including proper consultation and documentation

Notice Period Requirements: Statutory obligations regarding minimum notice periods based on length of service and contractual terms

Special Category Protection: Additional legal protections for special categories of employees, such as pregnant workers, those on maternity leave, or employee representatives

Right to Appeal: Legal requirement to provide employees with the right to appeal against redundancy decisions as part of a fair process

Alternative Employment: Legal obligation to consider and offer suitable alternative employment within the organization where available

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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