Redundancy Termination Letter

Whatever the situation, letting go of an employee is difficult and dealing with redundancy is the hardest thing for an employer to do. While dealing with the redundancy, you might have to say goodbye to some of your talented employees who have worked hard for you and your company and now have to leave the company due to no fault of their own.

If you are making an employee redundant, then you should issue him/her the letters at all stages of the entire process. If you are an employer and have never done this before, we suggest you use the Redundancy Termination letter from the best HR Toolkit to make sure you’ve included everything in the letter. This will help you to make the process simple and stress-free.

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Note: This letter will be useful to you! You can edit it, as your needs and requirements.

Redundancy Termination is stressful to deal with and you need to handle it with sensitivity. It is easy to hand over the letters, indeed the entire process to someone else with authority. However, if you handle the situation by yourself, your staff will respect you more for showing care. If you convey the redundancy news effectively, then you and your employees can part ways with no grudges and move forward toward a brighter future.

So, redundancy termination letter, what is it?

What is a Redundancy Termination Letter?

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. When you no longer need an employee for the job, you need to write a proper letter explaining the reason behind your decision.

If you don’t, an employee could sue you for unfair dismissal without notice. A redundancy circumstance may come up in the following situation:

The employer has discontinued or intends to discontinue carrying on the business for which the employee has been employed.
The employer has discontinued or intends to discontinue carrying on the business at the place for which the employee has been employed.
The business’s requirements for a personnel to perform a particular task are ceased or are likely to cease or reduce.
The business’s requirements for personnel to perform a particular task in the place they were employed is ceased or is likely to cease or reduce.

Redundancy Termination Process

There are various stages of the redundancy process, but they all have one common thing that is it keeps the employee informed about the proceedings of the redundancy process. The stages include:

Job at Risk of Redundancy

This lets the employee know that their job role is at risk of being redundant. This is informed to the employee using a job at risk redundancy letter.

Redundancy Consultation

The redundancy consultation letter invites the employee for a meeting to discuss their potential redundancy

Redundancy Notice

The redundancy notice tells the employee that they have been finally selected for the redundancy. The redundancy notice letter informs them about their redundancy and explains the next steps.

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How Do I Write a Redundancy Letter?

Confirm Redundancy

Some of the redundancy letter templates will suggest you address the employee with “Dear Sir/Madam”. However, you are writing this letter to someone you know already, so it would be better that you address them with their name.

Give them the new straight and inform them that they have been confirmed for redundancy. Let them know about any previous meetings or letters sent to them and include the important dates if any.

This is the time to work with emotions, showing them that you are sorry about whatever happened, and remind them that this decision is based on the financial crisis, not their performance.

Notice Period

Inform them of their notice period. The notice period will vary depending on how long the employee has been employed with the company, so check this in their contract. Legally, you should give a minimum notice period. According to the statutory notice period, if the employee has worked with you for:

Less than a month – no notice period.
One month to two years – one week’s notice period.
Two years to twelve years – one week’s notice period for each year.
More than twelve years – twelve week’s notice period.

This could be a stressful situation for the employees and they may not be able to focus on their work. Therefore, instead of asking them to work their notice period, you can offer them payment in lieu of their notice. This will give them some space and time to look for a new role.

Annual Leave

If they have any leave to take, inform them about how many they have and what will happen to those leaves. Check your internal records and their contract to make sure you have the right data. Any leftover annual leave should be added to their final pay, so be clear about the amount they will receive.

Redundancy Pay

An employee who is being redundant will be worried about their future expenses. Firstly, check whether the employee is eligible for any redundant pay. If yes, then inform them about the amount he/she will get.

Make sure to remind them in the redundancy termination letter about who long they have been employed with your company and mention the exact amount they will receive.

Alternative Roles

Invite the employee to offer an alternative role that may be suitable for them. Give them the set date and time, and also include the job description of the alternative role you are offering.

In case, if you are not able to find any suitable role for the redundant employee, inform them so and end the process. No need to drag the process giving them false hopes.

Redundancy Appeal

The employee has the right to defend the decision of redundancy. Inform them of who they should contact and any deadlines for filing an appeal. If you require a written appeal or precise grounds for their challenge to their redundancy, let them know.

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Tips for communicating Redundancy

Be clear and consistent
Engage your empathy
Prepare
Listen
Be Available

If you are doing this for the first time, you might require a customized and well-written letter template to make sure that you are not missing anything crucial. Get access to the Redundancy Termination Letter template on UBS – The best HRMS Software in India.