UK law states you need to issue a letter at each stage of your procedure, and employers who forget or get their letters wrong risk unfair dismissal claims!
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How to Write a Redundancy Letter
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A redundancy is unfair if a fair redundancy process wasn't followed by the employer, such as holding a redundancy consultation or if it wasn't a genuine redundancy. If you need advice on redundancies, contact an employment law expert.
At a redundancy consultation, the employer discusses with the employee why they may be at risk of redundancy. Employees have a legal right to a redundancy consultation
Redundancy is a form of dismissal which typically happens when an employer needs to reduce their workforce. This is usually down to financial issues or a company restructuring. Most employees are eligible for redundancy pay. Contact an employment law specialist for more information.
Peninsula provides total redundancy support, making difficult decisions safe and as stress-free as possible. A legal pro will carry out your redundancy consultations and protect your business further down the line. Contact us today for more information.
The minimum notice period for redundancy is one week for employees with between one month and two years of employment. Those who have worked between two years and twelve years are entitled to one week's notice for every year. Speak to an employment law expert for further guidance on redundancy pay.
Redundancy pay is calculated by age and length of service. For example, someone under 22 years of age will receive half a week's pay for each year of service.
There is no legal time limit for how long a redundancy process should take, but as a minimum, it should be at least 30 days before any employees are dismissed from a company.
You must follow a fair selection criteria for redundancies. Consider the following: skills and aptitude, standard of work and performance, attendance, disciplinary record. You should never discriminate when deciding. If you need advice, then contact an employment law specialist.
In this guide, we'll discuss redundancy pay, how much you need to provide, and what to do if you cannot afford to pay.
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Redundancy rules might seem trivial while a pandemic hurtles across the globe.
But employees get the same employment rights throughout the COVID-19 outbreak. So, if you need to reduce your workforce, you must stick to .
A crucial part of redundancies is the letters you give staff to update them on the process. UK law states you need to issue a letter at each stage of your procedure, and employers who forget or get their letters wrong risk unfair dismissal claims.
So, when should you write a letter? And how can you protect yourself from strict legal action?
Let me explain.
The rules on redundancy letters
A redundancy letter is a written document that you hand to your employee during a redundancy process.
It needs to explain the latest updates on job losses in your business and warn how the employee’s role might be affected.
You can send your employees as many letters as you like. But there are three main letters you should hand to someone who loses their job:
Letter one tells the employee they’re at risk of redundancy.
Letter two invites the employee to an individual consultation.
Letter three confirms you’ve selected the employee for redundancy.
Let’s take a closer look…
Letter one: at risk of redundancy
Your first letter should explain to the employee that you may have to make redundancies, and that their role is at risk.
You need to give a fair reason, such as the impact of coronavirus on your business. You can’t make someone redundant without a fair business reason. Otherwise, you could face a hefty tribunal claim.
The letter should also give details about how you’re going to try and avoid job losses, and when to expect a consultation.
Letter two: consultation invitation
Your next letter should invite the employee to a consultation at a specific time and date.
It needs to explain the purpose of the meeting, which is usually to tell the employee about the potential job loss and get their input on ways to avoid it.
The letter should also mention how you’ve selected people for possible redundancy (but you can explain this in more detail on the day).
If you offer any support services, such as an employee assistance programme, you should encourage your employee to use them now to help them prepare for the worst.
Letter three: confirmation of redundancy
Your final letter should tell the employee that they’ve been chosen for redundancy and give them notice that their employment is ending.
It needs to include:
Their leaving date
Whether they need to work their notice
Any paid time off they can use
How much redundancy pay you owe
Any other pay (like holiday pay) they get
How they can appeal against the decision
This is an especially tough letter to write. Not just because it makes someone’s job loss official, but because of the legal risks it brings.
Fortunately, there is a way to get an expert to craft watertight redundancy letters for you…
Protect your business today
Peninsula pairs you with an HR consultant who builds a redundancy process that cuts out costly legal errors.
Your expert writes all your paperwork and even consults with your staff to make the process as easy as possible. And as always, you get 24/7 access to HR advice to help you instantly solve urgent issues.
Learn more about how Rightsize helps to keep your business safe during redundancies. To book your free consultation, call 0800 028 2420 today.
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