MAKE YOUR FREE Dismissal for Redundancy Letter

Making a Dismissal for Redundancy Letter online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all of the details prepared in advance, making your document is a quick and easy process.

To make your Dismissal for Redundancy Letter you will need the following information:

Employer and employee details

• What are the employer’s details (eg legal structure and name)?

  • If the employer is a company, LLP or partnership, who will sign the Dismissal for Redundancy Letter on its behalf?

• Will the Dismissal for Redundancy Letter be printed on headed paper including the business’ name and address?

  • If not, what is the employer’s address?

• What are the employee’s name, address and job title?

• What is the name or title of the employer contact for the employee’s questions related to redundancy?

Redundancy 

• On what date was the redundancy consultation meeting held?

• Has the employee raised any points about the redundancy that have not yet been formally addressed by the employer?

  • If so, what are the outstanding points raised by the employee?

• Will the employee:

  • Work their notice period?

  • Be put on garden leave until the end of their employment?

  • Receive a payment in lieu of notice (PILON)?

• How long is the notice period to end the employee’s Employment contract?

• What is the employment end date?

• Is there any realistic likelihood of suitable alternative employment for this employee before the scheduled end date?

• Will the employee have 2 years of service or more on their termination date? If so, is the employer making a payment: 

  • Equal to the statutory redundancy amount? What is the value of the statutory redundancy payment?

  • Of an agreed sum to compensate the employee for loss of employment? What is the agreed sum? Will the agreed sum be paid on the same date as the last salary payment? Is the employee asked to sign a Settlement agreement with the employer?

If the employee will be placed on garden leave

• Will the employee be put on garden leave until the end of their employment:

  • As set out in their employment contract? If so, which clauses in the employee's contract allow for this?

  • Or by agreement with the employer?

If the employee will receive a PILON

• Which clauses in the employee's contract allow the employer to choose to make a payment in lieu of notice?

Final points

• How many days (pro-rata) of holiday is the employee entitled to up to their last date of employment?

• How many days of holiday has the employee taken up to this date?

• Which is true about the employee’s annual leave entitlement? The employee has:

  • No holiday left until their last day of employment.

  • Some holiday left to take during their notice period.

  • Some holiday left which they will be paid in lieu of taking.

  • Taken more holiday than their entitlement.

• On which date will the employee be paid their final salary payment?

• Do any obligations apply under the employee's contract after the end of their employment?

  • If so, which employment contract clauses set out these post-termination obligations?

• Is the employee a member of a pension scheme offered by the employer?

• What is the last date for the employee to appeal against their dismissal?

• What is the date of this Dismissal for Redundancy Letter?

Dismissal for Redundancy Letters are used to confirm that employees have been selected to be dismissed because of redundancy. Typically, provisions of a Dismissal for Redundancy Letter include:

Sender and recipient details

The start of the Dismissal for Redundancy Letter sets out the details of the employer and the employee who is being made redundant.

Confirmation of dismissal

The body of the Dismissal for Redundancy Letter provides details relating to the redundancy and the resulting dismissal. This includes: 

• details of the redundancy process (eg the redundancy consultation meeting)

• the employee’s notice period and, if relevant, any payments in lieu of notice or garden leave

• how any holiday will be handled

• the employee’s final day of employment

• when the employee’s final salary will be paid

• redundancy payments

• how to appeal the redundancy decision

Data protection

The Dismissal for Redundancy Letter also highlights that any personal data (eg the employee’s name and address) used during the redundancy and related dismissal process will be processed (eg collected and stored) in accordance with the employer’s Data protection and data security policy. It also encourages the employee to check the employer’s Employee privacy notice for easy-to-understand details on data processing.

You can edit your document if you want your Dismissal for Redundancy Letter to include further or more detailed provisions. However, if you do this, you may want a lawyer to review or change the Dismissal for Redundancy Letter for you, to make sure it complies with all relevant laws and meets your specific needs. Ask a lawyer for assistance.

Follow a clear redundancy process

To prevent any claims of unfair dismissal, it is paramount that you follow a clear and transparent redundancy procedure. It is a good idea to make a Redundancy policy that clearly outlines your redundancy process. Doing this ensures that your workforce understands how redundancies will be handled. Your redundancy process should include:

• carefully choosing who may be affected by redundancies using fair, transparent and non-discriminatory criteria

• using an At risk of redundancy letter to inform affected staff members that they may be made redundant

• using a Redundancy consultation letter to speak to all members of staff that may be made redundant

• considering what alternative employment may be suitable

Be aware that special rules apply in situations where 20 or more employees are being made redundant.

For more information, see the FAQ ‘What processes do I need to follow before issuing a Dismissal for Redundancy Letter?’ and read Redundancy and How to make someone redundant in a small business.

If you have any questions or concerns about the redundancy process, Ask a lawyer. You can also make use of our Redundancy service.

Understand the requirements for pregnant employees or those on maternity leave

Special rules apply when you are considering making a pregnant employee or an employee who is currently on maternity leave redundant. The steps you will have to take include the following:

• determine whether you have a genuine reason to make the employee redundant

• always consult the employee in question

• only choose candidates for redundancy based on transparent, objective, measurable and non-discriminatory criteria

• offer any suitable roles or vacancies to pregnant employees or employees on maternity leave before offering them to anyone else

For more information, read Redundancy and pregnancy or maternity leave.

Consider whether a settlement agreement is appropriate

A Settlement agreement is a document that records an agreement between an employer and an employee under which the employee waives their right to bring certain claims against the employer. In relation to redundancy situations, settlement agreements are typically used where an employer makes an enhanced redundancy payment. 

Employers may wish to offer settlement agreements to employees as they are quicker and may be safer than the redundancy process. This is because, by signing a settlement agreement, employees often waive their right to a proper redundancy procedure in return for an enhanced redundancy payment that is higher than the statutory minimum.

For more information, read Settlement agreements with employees and Ask a lawyer if you have any questions or concerns.

Adopt all relevant HR policies

As a conscientious and law-abiding employer, you should consider having certain HR policies in place to ensure your workforce is treated fairly and transparently. Examples of policies you should adopt include:

• a Redundancy policy - to clearly outline your internal redundancy processes

• a Disciplinary procedure - to inform your workforce about how you handle any disciplinary issues

• a Grievance procedure - to set out how you handle employee grievances and how disciplinary appeals can be raised

• an Equal opportunities policy - to explain how you ensure equal opportunities and prevent discrimination in the workplace

• an Anti-bullying and harassment policy - to explain how you approach and prevent workplace bullying and harassment

For more information, read HR policies and procedures.

Understand when to seek advice from a lawyer

Ask a lawyer:

• if this Dismissal for Redundancy Letter doesn’t meet your needs

• when a pregnant employee or an employee on maternity leave is being made redundant

• for collective redundancies (ie where it is proposed that 20 or more employees will be made redundant within a 90-day period)

• for employees based outside England, Wales and Scotland 

• if you have any questions or concerns about making redundancies