By Andrew Willis, Head of Legal at employment law and HR consultancy, Croner
Letters are the primary way of keeping employees in the know regarding redundancy. The UKย employment lawย requires you to issue letters at all stages throughout the process.ย But how do you start writing such an important letter? And what should you include in each one?
What is a redundancy letter?
There are several types of redundancy letter. The one thing they all have in common is they serve to keep the employee informed aboutย redundancy proceedings.ย Whether the letter is informing them their position is at risk of redundancy, inviting them to a consultation meeting, or telling them youโve selected them for redundancy, you need to write them in a way that ensures your legal compliance.
Redundancy letter types
There are several types of letters. Including:
- Job at risk of redundancy letter.
- Redundancy consultation letter.
- Redundancy notice letter.
The first letter should be the initial contact with the employee(s) about the potential for redundancy.ย The second should be the letter you send to invite them to a consultation meeting.ย And, the final letter should inform them that youโve selected them for redundancy and what the next steps will be. Do note that may not necessarily be the final letter. There can be more at that stage, such as a second consultation meeting. The letter process moves in stages.
What should I include in a redundancy letter?
In the letter, you should provide employees as much information on the redundancy process as possible.ย This means communicating updates, as well as what upper management is doing to ensure all alternatives to redundancy are being considered.ย It would be best if you also informed employees of their rights at all times. For example, certain employees might be eligible forย redundancy pay.
How to write a redundancy letter to employees
There are some key considerations when writing a redundancy letter to employees. The first, and most important from your perspective, is compliance. To avoid claims ofย unfair dismissal, you must follow a fair and legally compliant process. Otherwise, you may face a costly and damagingย employment tribunal. So, the question you should be asking with each letter is, โWill this open me up to claims?โ If the answer is anything other than a no,ย donโt proceed. The second thing to consider is whether youโve accurately conveyed all the relevant information.ย Donโt send a letter to an employee until youโre certain of the plan moving forward. Know how long your consultation process will be and how you are going to conduct meetings before you start inviting employees to meetings. With those three considerations in mind, letโs move on to how to write a redundancy letter.
Begin โDear Sir/Madamโ. Then, outline the purpose of your letter. If the objective is to inform the employee that their role is at risk of redundancy, tell them that. If itโs asking them to attend a consultancy meeting, tell them that. Next, youโll want to outline what they need to know, including their rights. Letโs use the redundancy notice letter as an example. Here, youโll need to tell them how many weeksโ notice they are entitled to, and why.ย You should tell them how your organisation will treat accrued annual leave if not taken before their final date of employment. Inform them of how much redundancy pay they can expect, and when they will receive it. Finally, inform them of their right to appeal the decision. Finalise the letter with a more personal touch Redundancy is a stressful and emotional time for the employee. Tell them that your door is open for discussion, and where they can find support if they need it.
Every business is different, so you must adapt any template or guide youโre given for your organisation.
