During financially challenging times, companies may have no other option than to consider redundancies. As stressful as this is for employers, employees also understand the perils or redundancies and often have fears with job security.
For many businesses, redundancy is a difficult situation to approach. Letting talented employees go is tough, but sometimes essential.
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During financially challenging times, companies may have no other option than to consider redundancies. As stressful as this is for employers, employees also understand the perils or redundancies and often have fears with job security.
Any company considering redundancies should prepare themselves and their employees for this process with job at risk of redundancy letters.
When planning a redundancy, employers should clarify any specific notes that relate to an employee’s team or department. For example, whether their line managers can provide additional information for why their role is being considered for redundancy.
An at risk of redundancy letter example should make it clear that being at risk does not necessarily mean they will be made redundant. Discussing this with employees and teams, in general, can reassure employees and make the process less stressful.
Preparing these letters may also help in the event of going to an . Redundancy legal advice provides help is disagreements arise. Download our free at risk of redundancy letter template today.
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There are three types of redundancy letters that can be used during the redundancy process. Such as:
At risk of redundancy letter: this is the first letter that notifies the employee that they're at risk of redundancy. The letter explains the reasons why redundancies are being considered, and details the redundancy process that will follow.
Redundancy consultation letter: this letter formally invites the employees in danger to a meeting to discuss their potential redundancy. This letter includes details of the consultation meeting, where the employees can present their views.
Notice of redundancy letter: this is the final letter that will confirm that the employee have been selected by the employer for redundancy. This letter details the date their employment ends, details of redundancy pay, as well as other important steps.
What is a job at risk of redundancy letter?
A job at risk of redundancy letter is a written letter of intent that their role is being considered for redundancy. Employees should receive these letters early in the redundancy selection process.
The letter itself should include:
Explanations
The letter should clearly explain why redundancies are being considered and why the employee’s role is one of the roles being considered.
Consultation process
This features details of the consultation process. This includes the immediate process following the letter, which can occur upon receiving the letter.
A consultation process always needs to take place - but if you have less than 20 employees at risk of redundancy, you do not need to follow collective consultation rules. Instead, you can consult with individuals.
Redundancy process
This features details of the redundancy process itself. This includes details more general to how the company is determining which roles are made redundant.
Alternatives to redundancy
The letter should include any alternatives to redundancy. This includes other roles available, as well as if they need to apply for a role.
Date of consultation
If you’re considering collective redundancy, the letter should clearly state when the consultation will take place. If possible, you should outline when you will make a decision - this will need to happen after the final consultation meeting.
Additional information
The letter should conclude with how the employee can find additional information, including details of EAPs or contacting representatives.
If nothing else, employers must provide information on how their management can support employees during the process.
When should you use an at risk of redundancy letter?
An at risk of redundancy letter template when you're ready to start discussions regarding redundancy in your business. However, you should have considered alternatives before handing the letter to the selected employees.
Download our at risk letter template today and ensure you act legally throughout the redundancy process.
Why is an at risk of redundancy letter important?
An at risk of redundancy letter plays a vital role in the redundancy process as it starts a fair and compliant process - which as an employee you must provide. But an at risk of redundancy letter is important for a number of reasons, such as:
Ensures legal compliance: this first step is crucial in following a fair redundancy process, meaning employers will avoid legal claims for unfair dismissal.
Provides fairness and transparency: the letter helps to clearly explain why the redundancies are being considered, and why a role has been identified as at risk.
Helps to prepare an employee: the letter provides an employee with an early warning, giving them time to look for a new role elsewhere, or an alternative role within the same company.
It starts the consultation process: the letters starts the formal consultation part of the redundancy process, which is a legal requirement where you must discuss the ongoing situation with the employees at risk before making a final decision.
Helps to reduce tension: the letter can help to reduce both panic and confusion with the company, as well as providing clarity that redundancies aren't down to personal performance - but due to the job.
Helps to document the process: the letter ensure a written record is created from the start of the process.
Details the consultation process: the letter will detail the timeline for the consultation process. Including who will be involved and what the process is.
Download our free at risk of redundancy template now and stay legally compliant throughout the redundancy process.
ACAS and redundancy procedures
ACAS procedures outline what employers should include in an at risk of redundancy letter.
A job at risk of redundancy letter should include:
The date you send the letter
The name of the employee
The reason for redundancies in the business
The number of redundancies the business needs to make
The roles and teams affected by redundancies
Details of the consultation process
The teams or departments at risk of redundancy
How long the process and consultation meetings will take
Expected timeline of the process
Information of who to contact about further information
A letter with these elements provide employees with a clear indication that redundancies are being considered. Once they receive a letter, you can begin consultations and meetings about redundancies.
A sample at risk of redundancy letter template for the UK is available here. For other countries, you can consult our international branches, including Ireland and Canada.
Once you’ve finished the redundancy process, it can help to consult the employees that received a letter but weren’t made redundant. These follow-up letters are called ‘role no longer at risk of redundancy letter’.
The reason for these follow-up letters is to reassure these employees. Failure to do so can increase their stress and may even lead to negative consequences such as low employee morale and a less productive workforce.
Procedure to follow when sending an at risk of redundancy letter
As an employer, you must follow the correct procedure when handing out an at risk of redundancy letter.
For example:
Respect the employee's privacy by handing them the letter directly and discretely
Provide the employee with the opportunity to discuss the letter.
Provide the employee with any support they may need, such as from a union representative.
Download your redundancy letter template from Peninsula now
At risk of redundancy letters are among the first steps to take when considering redundancies. These inform your employees and provide insight with your consideration process.
It is vital to professionally inform employees, as you can provide advice and support during the redundancy selection process.
Using at risk of redundancy letter templates makes these early stages easier for employers. This, in turn, helps any employees being considered for redundancies.
Peninsula can help with more than just a job at risk of redundancy letter template. Our redundancy legal advice can help at every step of the selection process. For specific, specialised assistance, you can call our experts at 0800 158 2313. Download our free at risk of redundancy letter template today.
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