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If an employee alleges their redundancy is not genuine, that the correct process has not been followed or that the reasons for their redundancy are unfair, they may be able to bring a claim for unfair dismissal. You should also cover statutory redundancy pay, and any other details regarding pay or benefits here, such as how unused annual leave will be handled. You have been terminated for the following reason (s): [List factual reasons for termination]. SEE ALSO Such rights include the employees rights to appeal your decision. The main idea behind holding consultation meetings is to include employees in the decision-making process. If the employees contract allows, you may be able to make a payment to them in lieu of them working their notice. The model documents we offer are provided as published in the databases and publications at the time of request. People react differently when put at risk of redundancy. You also have the option to opt-out of these cookies. A letter inviting the individual (or their representative) to take part in the, A letter informing the individual that they have been. Use a language that conveys a positive message as much as possible. Download Now! A redundancy letter is a written communication from an employer to an employee that informs them of their job loss due to a reduction in the workforce. A redundancy notice is a letter that explains why an employee's employment is ending, along with the other details about your remaining period with the company. It should contain the following: This section will cover how to communicate with employees who are at risk of redundancy and those who are not. If you decide to reject the appeal, the employee's redundancy dismissal, notice, and pay will continue as before. It is important to communicate clearly and openly with your staff, rectify any issues with the process, and ensure a fair selection procedure is carried out. What you do right at the start may well dictate what you can legally do next and how much flexibility you have to achieve your preferred outcome. Get tailor-made HR support for your business size, Give your business the best possible start with BrightHR. Stay informed with the latest news and tips to manage your business safely and effectively. Your redundancy process must include looking for other suitable work. We take the complexity out of workplace legislation to help small business employers protect their business and their people. You should use this letter only when you have reached a decision to terminate an employees contract with you because of a redundancy situation. Follow our July 2023 product update as we share all of the latest features we've released. One way to navigate this conversation is to stress the importance of an all for one, one for all mindset. The ICAEW Library & Information Service holds an extensive range of pro forma letters and agreements for redundancy from authoritative sources such as Business Essentials, Harvey Employment Precedents; Company Administration and Governance Precedents; and the Encyclopaedia of Forms and Precedents. Step 4: Create your letter of termination of employment . If an employee feels they have been unfairly chosen for redundancy or if they think there were discriminatory issues in the process, it is essential to offer them the opportunity to appeal within a reasonable time frame after they have received their redundancy notice. Template redundancy letters and agreements | ICAEW Stay up-to-date with the latest business and accountancy news: Sign up for daily news alerts. annual leave, overtime, long service leave). The consultations stage is a hugely important part of the redundancy process, and its essential that employers look at this as an open discussion with the employee, rather than using this time to just inform them of their potential redundancy. Part of the process is about issuing redundancy letters to your employees. You will receive it in Word and PDF formats. In this guide, well explain the different letters you need to provide for compulsory and voluntary redundancies and how to write a clear notice of redundancy letter. The most important points to follow when writing your redundancy letters is: Here's to hoping you never have to make employees redundant. In this article, we will understand redundancy letters, their types, templates, and how to write one for both an employer and an employee. Then put in the subject matter e.g. A consultation will help you explore alternatives that could prevent redundancies from happening. There are a number of different reasons why you might be losing employees to redundancy, but you have to state yours clearly. Your redundancy pay is calculated based on . This means keeping employees informed throughout the entire process, as required by UK employment law. Stick with us to learn how to write a redundancy letter, what to include and the steps for doing it in a way that meets legal obligations and in a way that has your staffs interests at the center. Address the employee e.g. Redundancy letters, forms and templates | nibusinessinfo.co.uk Sending out a redundancy letter without giving a proper reason can get you in trouble. redundancy pay, and payment for untaken annual leave or long service leave. Benefits: Employers should explain what happens to the employee's benefits, such as healthcare, pension, and life insurance, after they leave. The top of which will be are there going to be any redundancies?. You should also advise as to how your business is going to treat accrued annual leave if it is not taken prior to their last date of employment. Redundancy Consultation Letters outline the reasons for proposed redundancies and set out the details of the consultation meeting. Step 8: Make sure the letter is printed on company letterhead and give it to the employee personally or send it by pre-paid post to their last known residential address, rather than delivering it to their email address. If youre only making minor changes and few redundancies then making an announcement is not advisable. August 31 2015]. Employers may have to make employees redundant where their jobs have been automated or outsourced. As an employer, you should be mindful of several things when making redundancies. It provides structure to your own letter as well as important elements that help you avoid misunderstandings and disputes. A layoff is when a person's employment is terminated or suspended, with or without notice, by management or their employer. A fair redundancy process will usually consist of three stages: By submitting contact details, I acknowledge that I have read and agree to the Terms of Use and the Your letter should confirm what happens now that employees have been selected for redundancy. PDF Sample redundancy letter - isme.ie You should provide a second letter to confirm the details to any individual that accepts your offer. They can be a stressful time, for both you and staff alike and can spark a lot of employee angst and complaints. Download free toolkits, checklists, factsheets, eGuides and other tools. This is vital, so that employees know when they will be leaving and how much time they have to search for a new role. Employers should have a valid reason for making the decision to make an employee redundant and may be required to follow various procedural steps to ensure the redundancy is genuine. Tel: 0800 783 2806. Dismissal Letter For Redundancy | Template - Rocket Lawyer UK Job at risk of redundancy letter This is the first official letter, which warns staff of potential redundancies looming within the company. In such an uncertain economic environment, here are five alternatives to redundancy you can choose for your team. At that final consultation meeting, an employer may be able to make an employee redundant. This could be, for instance, five days. 2023 DeltaQuest Media Limited. Typical fair reasons for redundancy include: The letter should also provide the reason as to why the individual has been selected for dismissal. Again, the reasons must be fair and should relate to any objective selection criteria that were applied during the selection process, which could include: The letter should then deal with the practicalities of the dismissal, including timescales for next steps, the final date of employment and details of any entitlements. Farillio members have access to all our online content. BrightHR has a Redundancy Tool to help you navigate this process. The redundancy letter should therefore be used to statewhy the employees role has become redundant and why they are being dismissed. Call us for free initial advice on 1300 651 415. Use our induction checklist to support employees and help them settle into their role. Redundancy is a type of dismissal where the employees job is no longer required. Sample Terminating Employee Due To Redundancy Letter Redundancy Letter Templates - SELECT 3. Disciplinary record Absence record Lateness record Performance Qualifications Skill level Redundancy notice The letter should then deal with the practicalities of the dismissal, including timescales for next steps, the final date of employment and details of any entitlements. Get unlimited access to 100s of legal resources by signing up to Farillio today. This reduces the cost of one full-time employee whilst allowing two employees to work reduced hours. The future of hybrid working, Easter 2023: Your guide to paying employees, provide an overview of the situation generally (e.g. We've teamed up with Farillio, the small business legal support specialists, to give you access to a practical action plan. Our downloadable template will help you review the performance of your team members more efficiently and effectively. Read more Guides and Playbooks Strategies to improve client satisfaction and retention So make sure that you explicitly mention why are you making an employee redundant. Download our free redundancy letter templates which can be customised to suit your business needs. You should use this letter only when you have reached a decision to terminate an employee's contract with you because of a redundancy situation.