Writing a Redundancy Consultation Letter (UK)

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

In the UK, a redundancy consultation letter is an important document used when an employer is making an employee redundant. It provides the employee with essential information required by law, such as their rights and entitlements in the event of redundancy, and outlines the process they must follow in order to ensure that the redundancy process is carried out lawfully and fairly. On top of this, it also helps to provide employees with important reassurance and support during a difficult time.

The Genie AI team - experts in drafting legal documents - believe that these letters are critical for ensuring that both employers and employees have full knowledge of their rights in the event of a redundancies - from providing advance notice to offering any alternative roles available within the company. This way, all parties can feel confident that they will be treated fairly throughout what can be a stressful time.

To add even more transparency to this process, Genie AI has created an extensive open source legal template library which hosts millions of datapoints on how a market-standard redundancy consultation letter should look like; giving anyone access to customised high quality legal documents without having to hire or consult with lawyers.

Importantly too, our free templates ensure those writing them do not need a Genie AI account or face any restrictions on use or access. Rather simply we hope we can help people navigate through these challenging times quickly, efficiently and above all else fairly - enabling both parties to feel secure knowing what rights they have at their disposal. By going through our easy-to-follow step-by-step guidance below you’ll be able to read more about how our community template library operates today!

Definitions (feel free to skip)

Redundancy: The process of terminating employment due to the end of a job or role.
Consultation: The act of discussing and exchanging ideas or opinions to come to a mutual agreement.
Statutory: A law or rule that is set out by a government body.
Entitlements: Benefits to which an individual is legally entitled.
Appeal: The act of challenging a decision or ruling through a formal legal process.

Contents

• An overview of the redundancy process and legal requirements in the UK
• An explanation of the responsibilities of the employer and employee when it comes to redundancy consultation
• What the employer must do
• What the employee must do
• A template for a redundancy consultation letter and guidance on how to fill it out
• Who the letter should be addressed to
• Details of the redundancy
• The employee’s right to appeal
• Any other relevant information
• An explanation of the employee’s rights and entitlements in the event of redundancy
• Statutory redundancy pay
• Notice period
• Any other relevant entitlements
• A run-through of the process for appealing a redundancy decision
• How to submit an appeal
• The timeline for the appeal process
• How the decision of the appeal will be communicated
• Information on further sources of advice and support for employers and employees
• Government websites
• Trade unions
• Legal advice services
• A checklist to be used for a successful redundancy process
• An explanation of the financial implications of redundancy for employers
• A template for a redundancy announcement letter
• A detailed guide to managing the communication and emotions of staff during the redundancy process

Get started

An overview of the redundancy process and legal requirements in the UK

• Understand the legal requirements for redundancy in the UK. This includes the obligation to inform and consult with employees who may be affected by the redundancy.
• Research the relevant laws and regulations to ensure you’re aware of any specific requirements for your situation.
• Ensure that you have the authority to dismiss staff and to make redundancy payments.
• Make sure that the redundancy process is non-discriminatory and complies with the law.
• Check if your employees are eligible for a redundancy package and if they are entitled to any compensation.
• You can check this step off your list when you have a good understanding of the legal requirements for redundancy in the UK and are aware of the relevant laws and regulations.

An explanation of the responsibilities of the employer and employee when it comes to redundancy consultation

• Understand the responsibilities of the employer and employee in the redundancy process
• The employer must consult with all employees that may be affected by the proposed redundancy
• Consultation should involve the employer informing the employees of the reasons for redundancy, the proposed terms and the selection criteria
• The employer should provide employees with the opportunity to raise any concerns or suggest alternative options
• The employee should be given enough time to consider the proposed redundancy and provide feedback to the employer
• After consultation, the employer should take into consideration any feedback or alternative suggestions given by the employee
• Check off this step when you have an understanding of the responsibilities of the employer and employee when it comes to redundancy consultation.

What the employer must do

• Notify the affected employees of the proposed redundancy in writing, including the reason for the redundancy, the expected date of redundancy, and any severance package, if applicable
• Arrange consultation meetings with the affected employees, to discuss the proposed redundancy and any alternatives to redundancy
• Consider any representations made by the affected employees
• Respond to the affected employees, in writing, to inform them of the conclusion of the consultation process
• Check with relevant trade unions, or employee representatives, to ensure compliance with any applicable collective agreements

Once the employer has completed the above steps, they can move on to the next step of the guide which is ““What the employee must do””.

What the employee must do

• Familiarize yourself with the redundancy process, including the legal obligations of the employer
• Attend all redundancy consultation meetings, proposing any alternative solutions or representations you may have
• Take notes during the meetings and ask questions to ensure you understand the situation
• Ask for information from the employer if you need it to understand why redundancy is being considered
• When the consultation is completed, make sure you have a clear understanding of the situation, your role in the process, and the timeline for the next steps
• When you have completed this step, you can move on to the next step of the guide.

A template for a redundancy consultation letter and guidance on how to fill it out

• Obtain a template for a redundancy consultation letter
• Ensure the letter includes the employee’s name, job title, and employment start date
• Include a statement that explains the reason for the redundancy
• Provide a description of the business’s efforts to avoid redundancy, such as offering alternative employment
• Include a statement that explains the employee’s right to appeal the redundancy decision
• State the date when the redundancy will be effective
• Outline the employee’s entitlements such as notice period and payment
• Invite the employee to a meeting to discuss the redundancy
• Sign and date the letter

How you’ll know when you can check this off your list and move on to the next step:

• Once the template is filled out, double check that all the information is accurate, and that the letter contains all the necessary details
• Once you have verified the accuracy of the letter, you can move on to the next step of addressing the letter.

Who the letter should be addressed to

• Start with the employee’s full name
• Include their job title
• If applicable, include their department
• Include the company address
• Check off this step once the letter has been addressed accordingly.

Details of the redundancy

• Outline the reason for the redundancy: explain to the employee why the role is no longer required, e.g. reduced demand, restructuring, or lack of funds.
• Explain how the decision was made: outline the consultation process undertaken and the criteria used to select the employee.
• Identify the role or job being made redundant: detail what the role or job entails and how it fits into the organisation.
• Confirm the date the redundancy will take effect: this should be no earlier than the date on which the consultation letter was issued.
• Provide information about redundancy pay and any other entitlements: include details about payments due, notice period, length of service, and any other benefits.
• Check off the task of providing details of the redundancy when you have completed all of the above steps.

The employee’s right to appeal

• Inform the employee in writing of their right to appeal the decision
• Provide details of the appeal process, including who the employee should contact and when
• Give the employee a reasonable length of time to appeal the decision
• Let the employee know they can bring a colleague, friend or trade union representative to the appeal meeting
• Inform the employee in writing of the outcome of their appeal

Once you have informed the employee of their right to appeal the decision, and provided details of the appeal process, you can check this off your list and move on to the next step.

Any other relevant information

• Provide any other relevant information, such as the availability of alternative employment within the business, and the employee’s rights and entitlements.
• Explain any additional financial support or compensation the employee may receive, such as redundancy pay, notice pay, and so on.
• Make sure to include an explanation of the employee’s right to appeal the decision.
• When you have included all the necessary information, you can check this step off your list and move onto the next step.

An explanation of the employee’s rights and entitlements in the event of redundancy

• Explain to the employee that they are legally entitled to receive redundancy pay
• Provide details of the amount they are entitled to receive according to their length of service
• Explain the rights they have to any benefits they may have accrued, such as pension contributions
• Outline the employee’s rights to a statutory redundancy payment, including the amount they may be entitled to
• Detail any other statutory rights the employee may have, such as the right to claim for unfair dismissal
• Advise the employee of the appeals process, should they wish to challenge the redundancy

Once you have completed this step, you can check it off your list and move on to the next step.

Statutory redundancy pay

• Research the type of redundancy pay employees in the UK are entitled to as part of the redundancy process
• Consult the relevant legislation and check the company’s own redundancy payment policy
• Calculate the amount of redundancy pay the employee is entitled to, if any
• Set out the amount of redundancy pay in the letter
• Once you have included the statutory redundancy pay information in the letter, you can move on to the next step.

Notice period

• Provide the employee with a written notice of redundancy, which should include the date of their last day of work.
• If their contract states a notice period, you must follow it. If it doesn’t, the statutory minimum period is one week for employees who have been employed for more than two years.
• Check any applicable collective agreements, company policies, or agreements between you and the employee as they may state a different notice period.
• Once the notice period has been completed, move on to the next step of calculating any statutory redundancy pay due to the employee.

Any other relevant entitlements

• Check the employee’s contract of employment, any collective agreements and the Employment Rights Act 1996 to ensure that the employee is aware of any applicable entitlements.
• Make sure to inform the employee of any contractual, statutory and other entitlements that they may be entitled to, such as a payment in lieu of notice, and any additional payments they may be entitled to due to the length of their service.
• Include any payment that the employee may receive in the consultation letter.
• Confirm with the employee the date on which their employment will end and ensure that they receive any payments owed to them on or before this date.

Once you have checked the employee’s contract of employment, any collective agreements and the Employment Rights Act 1996, as well as informing the employee of any applicable entitlements, you can move on to the next step: A run-through of the process for appealing a redundancy decision.

A run-through of the process for appealing a redundancy decision

• Check if you are eligible to appeal the redundancy decision - this includes whether you have worked for the organisation for more than two years, and if you were given the correct consultation period by your employer
• You will need to put your appeal in writing - make sure it is clear and concise, and covers the key points of your case
• You will need to provide evidence to support your appeal - this could include witness statements, documents, or other relevant information
• Your appeal should include details of why you think the decision to make you redundant was unfair
• You will need to send your appeal to your employer - make sure you keep a copy of your letter and any evidence you have included
• You will need to wait to hear back from your employer - they will have a set amount of time to respond to your appeal
• You will know you can check this off your list and move on to the next step once you have sent your appeal and received a response from your employer.

How to submit an appeal

• Gather all relevant documents, such as payslips and contracts
• Prepare a written appeal letter, including details of why you believe the redundancy decision is incorrect
• Include any additional evidence you wish to present
• Submit the written appeal to your employer within the specified timeframe
• You’ll know when you can check this off your list and move on to the next step when you receive a written response from your employer confirming that they have received and accepted your appeal.

The timeline for the appeal process

• You have 14 days from the date of notification of the redundancy to submit your appeal.
• The employer must respond to the appeal within 14 days of receipt.
• You have the right to be accompanied by a work colleague or trade union representative at the appeal hearing.
• The employer must provide an outcome of the appeal within 14 days of the hearing.
• After the appeal hearing, if you are still dissatisfied, you can raise a grievance with your employer.
• You will know when you can move on to the next step once you have received a response to the appeal.

How the decision of the appeal will be communicated

• Ensure the decision is communicated to the employee in writing, preferably as a letter.
• The letter should include the reasons for the decision and confirm the date of implementation.
• The letter should also explain the employee’s right to appeal the decision, along with the timeframe and the procedure.
• Once the decision is communicated to the employee, the process is complete and you can move on to the next step.

Information on further sources of advice and support for employers and employees

• Provide information on further sources of advice and support for both employers and employees.
• This could include websites such as the government’s Acas website, a trade union representative, or an HR professional.
• Make sure to include contact details for each source of advice.
• You can check this off your list once you have provided information on all the sources of advice and support for employers and employees.

Government websites

• Visit the UK Government’s website for employers and employees on GOV.UK to find out more information about redundancy consultation.
• Read through the guidance documents available, such as the ‘Employment Law and Redundancy: Employer’s Guide’ and the ‘Employment Law and Redundancy: Employee’s Guide’.
• Make sure to understand the legal requirements when carrying out a redundancy consultation.
• You can check this step off your list once you have read through the relevant government websites and have a good understanding of the legal requirements of redundancy consultation.

Trade unions

• Contact your trade union representative to discuss how to proceed with the redundancy consultation process
• Ask the trade union representative to explain any relevant policies and procedures that the company must follow
• Ask the trade union representative if they can provide any advice or assistance with writing a redundancy consultation letter
• Check with the trade union representative if they can accompany you to any meetings with the company
• When you have all the necessary information, you can move on to the next step in writing a redundancy consultation letter (UK) - legal advice services.

Legal advice services

• Ensure that you have consulted with the employee’s trade union (if any) before proceeding with legal advice services.
• If the employee does not have a trade union, seek out a solicitor to provide legal advice as to the redundancy process.
• Make sure to ask for a written legal opinion about the consultation process and the selection criteria used.
• Ensure that you are following all legal requirements; in the UK, this includes the minimum consultation period of 30 days, and giving notice to the employee of their rights.
• Discuss the possibility of a financial settlement with the solicitor.
• Once you have received the legal advice, you can proceed with writing the redundancy consultation letter.

You will know you can move on to the next step when you have received the written legal opinion and discussed the financial settlement with the solicitor.

A checklist to be used for a successful redundancy process

• Meet with the employee in a private setting
• Explain why the redundancy is taking place
• Explain the selection criteria that has been used
• Outline the employee’s rights, including the right to appeal
• Advise the employee of their eligibility for statutory redundancy pay
• Offer any additional redundancy entitlements
• Discuss potential alternative employment with the employee
• Offer the employee any applicable outplacement services
• Give the employee the opportunity to ask any questions
• Provide the employee with written confirmation of the redundancy

Once all the above steps have been completed, you can move on to the next step, which is to explain the financial implications of redundancy for employers.

An explanation of the financial implications of redundancy for employers

• Understand the costs associated with redundancy, such as statutory redundancy pay, notice pay and any other payments that may be due
• Be aware of the legal requirements for redundancy, including the minimum period of consultation, which is at least 30 days for 20 or more redundancies
• Calculate the total cost of redundancies for the organization, taking into account any additional payments that may be due
• Consider the potential impact of redundancies on the organization’s finances and budget
• Check the organization’s insurance policy to see if redundancies are covered

Once you have a complete understanding of the financial implications of redundancy for your organization, you can move on to the next step which is to create a template for a redundancy announcement letter.

A template for a redundancy announcement letter

• Understand the legal requirements for redundancy notice and consultation in the UK
• Identify the employee you are writing to and the dates of their employment
• Explain the circumstances of the redundancy, including why the job is no longer necessary
• State the date of their last day of employment
• Outline the redundancy package and any additional entitlements
• Provide details of any help and support available to the employee
• Sign off the letter and include a contact person for further information or questions
• Check that the letter meets the legal requirements for redundancy consultation
• Once the letter is drafted, send it to the affected employee and keep a copy for the company records.

A detailed guide to managing the communication and emotions of staff during the redundancy process

• Prepare yourself mentally and emotionally to deliver the news. Make sure you are clear on the details and rationale of the redundancies.
• Schedule 1-to-1 meetings with each member of staff who is being made redundant.
• During the meetings, explain the rationale behind the decision and the details of the redundancy package.
• Listen carefully to any questions or concerns your staff members may have.
• Offer support and advice on CV writing and job searching.
• Give staff members a chance to ask questions and express their feelings.
• Provide a timeline for the redundancy process and any further steps.
• Offer your contact details should they need to discuss anything further.

You’ll know you can check this off your list and move on to the next step once you have completed 1-to-1 meetings with each member of staff who is being made redundant and addressed their questions and concerns.

FAQ:

Q: Is an employer required to give a redundancy consultation letter to each employee?

Asked by Austin on August 17th, 2022.
A: Yes, an employer is required to give a redundancy consultation letter to each employee in the UK. This is outlined in the Employment Rights Act 1996, which states that employers must provide employees with written details and explanation of the redundancy process. The letter should include information such as the reason for the redundancy, the selection criteria used and any rights to appeal.

Q: Does the redundancy consultation letter need to be signed by the employee?

Asked by Sydney on July 15th, 2022.
A: No, it is not necessary for an employee to sign off on a redundancy consultation letter in the UK. However, it is recommended that employers ask for an acknowledgment of receipt of the document from employees and keep a copy for their records. This will ensure that employees have read and understood the information in the letter and are aware of their rights and entitlements with regard to redundancy payments.

Q: What should be included in a redundancy consultation letter?

Asked by Noah on December 1st, 2022.
A: A redundancy consultation letter should include information such as reasons for the redundancy, selection criteria used, any rights to appeal and estimated length of notice period. It should also include details on any additional payments or benefits that may apply, such as notice pay, compensation payments or ex-gratia payments. The letter should also provide details of any other forms of assistance available to employees such as outplacement services or job search support.

Q: Can an employer make changes to a redundancy consultation letter?

Asked by Emma on April 10th, 2022.
A: An employer can make changes to a redundancy consultation letter at any time, but these changes must be communicated in writing to affected employees. It is important that any changes are made in line with employment law so it is advised that employers seek legal advice before making any amendments. Employers should also ensure that employees are given reasonable notice of any changes so they can ensure they understand their rights and entitlements under the new terms.

Q: Is there a standard format for writing a redundancy consultation letter?

Asked by Nathan on December 28th, 2022.
A: There is no standard format for writing a redundancy consultation letter but there are some key points which should be included in all letters sent out to affected employees. These include reasons for the redundancy, selection criteria used and estimated length of notice period as well as details on any additional payments or benefits which may apply such as notice pay or compensation payments. Furthermore, employers should provide guidance on how employees can appeal against a decision as well as access other forms of assistance such as outplacement services or job search support.

Q: Are there legal requirements when writing a redundancy consultation letter?

Asked by Jacob on September 3rd, 2022.
A: Yes, there are several legal requirements which must be met when writing a redundancy consultation letter in the UK. These include providing detailed information on reasons for the redundancies as well as selection criteria used and estimated length of notice period; outlining additional payments or benefits which may apply; and providing guidance on how employees can appeal against a decision as well as access other forms of assistance such as outplacement services or job search support. In addition, employers must comply with employment law when making changes to the letter and ensure affected employees are given reasonable notice of any changes so they can understand their rights and entitlements under the new terms.

Q: Is it possible to write a generic template for a redundancy consultation letter?

Asked by Mason on November 4th, 2022.
A: It is possible to create a generic template for a redundancy consultation letter but it is not recommended. Every case will be different and will require tailored advice specific to each employee’s situation so it is important that employers provide detailed information relevant to each individual case rather than relying solely on generic templates. Furthermore, employers must ensure they comply with employment law when making changes to the letter and ensure affected employees are given reasonable notice of any changes so they can understand their rights and entitlements under the new terms.

Q: What is the difference between UK, USA and EU laws regarding redundancies?

Asked by Olivia on October 12th 2022.
A: The UK has specific laws regarding redundancies outlined in The Employment Rights Act 1996 which require employers to provide written details and explanation of the process in addition to other information such as reasons for redundancies and selection criteria used. The USA has similar laws under Title VII of The Civil Rights Act 1964 which prohibit discrimination based on race, colour, religion, sex or national origin when making redundancies; however this does not require employers to provide written details of redundancies like it does in the UK. In addition, individual states may have additional laws which employers must comply with when making redundancies so it’s important that employers are aware of all relevant laws applicable in their state or jurisdiction before proceeding with redundancies. In terms of EU law regarding redundancies there are several pieces of legislation which govern how employers must proceed including Directive 98/59/EC (the Collective Redundancies Directive) which applies across all EU Member States including the UK; however this does not require employers to provide written details like it does in UK law so it’s important that employers familiarise themselves with UK legislation before proceeding with redundancies if based in England or Wales (or Scotland).

Q: Do I need legal advice when writing my own redundancy consultation letter?

Asked by William on February 26th 2022.
A: It is always advised that employers seek legal advice before making any decisions regarding redundancies or writing their own redundancy consultation letters; however this may not always be necessary depending on the particular circumstances involved e.g., if you only have one employee who will be made redundant then you may not need legal advice but if you have multiple employees then it is likely you will need some form of legal advice at some point during proceedings either from an employment law specialist or solicitor depending on your particular needs and budget constraints. In addition, it’s important that you familiarise yourself with UK legislation before proceeding with any form of action involving redundancies so you know what you can and cannot do within your own jurisdiction – seeking legal advice can help ensure you’re compliant with all applicable laws whilst also protecting your business from potential liabilities associated with redundancies further down the line (such as unfair dismissal claims).

Example dispute

Suing a Company for Wrongful Dismissal:

• Plaintiffs may raise a suit against a company for wrongful dismissal if they believe the terms of their redundancy consultation letter have been violated.
• The redundancy consultation letter should outline the company’s procedures for redundancy and the rights of the employee.
• Plaintiffs may sue if they believe the company has not followed the correct procedures, or if they feel they have been unfairly dismissed.
• The court may award damages to the plaintiff if they can prove that the company has acted unlawfully or unfairly.
• Damages may include compensation for lost wages, legal fees, and any other losses suffered as a result of the wrongful dismissal.
• Settlement of the claim may be reached through negotiation or mediation.

Templates available (free to use)

Pre Transfer Redundancy Consultation Agreement Tupe
Standard Cancellation Notice Of Election To Carry Out Pre Transfer Redundancy Consultation Tupe
Standard Pre Transfer Redundancy Consultation Notice Tupe
Suitable Alternative Employment Offer To Employee On Maternity Leave Following Redundancy Consultation
Termination Letter For Employee On Maternity Leave Following Redundancy Consultation

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