Redundancy Notice Letter Template for England and Wales

A redundancy notice letter is a formal document that confirms an employer's decision to make an employee's position redundant under England and Wales employment law. This letter represents the final stage of the redundancy process and must be carefully drafted to comply with statutory requirements while protecting both parties' interests.

When do you need this document?

You need a redundancy notice letter when you have completed proper consultation procedures and made a final decision to make a position redundant. This applies whether you are making a single employee redundant or conducting collective redundancies affecting multiple staff members. The letter is required after you have explored alternative employment options, considered suitable alternative roles, and concluded that redundancy is the only viable solution. You must issue this letter before the employee's last working day to provide proper notice as required by their contract and statutory minimums.

Key legal considerations

Your redundancy notice letter must clearly state the business reasons justifying the redundancy decision, demonstrating it is a genuine redundancy situation rather than disguised dismissal. Include specific details about notice periods, ensuring compliance with both contractual terms and statutory minimums under the Employment Rights Act 1996. Calculate and clearly explain redundancy payment entitlements, including statutory redundancy pay based on the employee's age, length of service, and weekly pay. Address any outstanding holiday pay, pension arrangements, and benefits that will cease upon termination. Consider whether the employee has the right to request early release from their notice period and include information about references and support during their job search.

Legal requirements in England and Wales

Under the Employment Rights Act 1996, you must provide statutory notice periods: one week for employees with one month to two years of service, one week per year of service for those with two to twelve years, and twelve weeks for employees with twelve or more years of service. Calculate statutory redundancy payments using the prescribed formula: half a week's pay for each year of service under age 22, one week's pay for each year between 22 and 40, and one and a half week's pay for each year over age 41, subject to current statutory caps. If making 20 or more employees redundant within 90 days, ensure you have completed collective consultation requirements under the Trade Union and Labour Relations (Consolidation) Act 1992. Confirm your selection process complies with the Equality Act 2010, avoiding discriminatory criteria based on protected characteristics. Document that you have offered suitable alternative employment where available and provided reasonable time for the employee to consider any offers.