Redundancy Consultation Letter Template
Free redundancy consultation letter templates for UK employers. Individual and collective consultation invitations with legal requirements.
Use these templates to start redundancy consultation meetings legally and professionally.
Individual Redundancy Consultation Letter
Private & Confidential
[Company Name] [Company Address]
[Date]
[Employee Name] [Address]
Dear [Employee Name],
Invitation to Redundancy Consultation Meeting
I am writing to inform you that your role may be at risk of redundancy and to invite you to a consultation meeting to discuss the situation.
Background
[Provide clear explanation of the business reasons, e.g.:]
The Company has [experienced a significant decline in orders / decided to restructure the [department] / implemented new technology that reduces headcount requirements / closed the [location] / other business reason].
As a result, we have concluded that it is necessary to [reduce the workforce / reorganise the structure] in [department/location].
Potential Impact on Your Role
Your role of [Job Title] is one of [X] positions that has been identified as potentially redundant.
[If selection pool:] There are [X] employees in similar roles who are also at risk. A fair and objective selection process will be used to determine which roles will be made redundant.
Provisional Timeline
This is the current proposed timeline (subject to consultation):
| Stage | Date |
|---|---|
| Consultation period starts | [Date] |
| First consultation meeting | [Date, time, location] |
| [Further meetings if needed] | [Dates] |
| Final decision | On or after [date] |
| Notice period (if applicable) | [X weeks/months] |
| Proposed leaving date | [Date] |
The Consultation Process
This letter marks the start of a genuine consultation period. No final decision has been made about your employment. The purpose of consultation is to:
- Explain the business situation and proposals
- Hear your views and suggestions
- Consider ways to avoid redundancies
- Discuss alternative employment within the Company
- Consider any mitigating measures
- Ensure any redundancies are handled fairly
Your input is important and will be carefully considered before any final decisions are made.
First Consultation Meeting
Your first consultation meeting is scheduled for:
Date: [Date] Time: [Time] Location: [Room/address] Attendees: [Manager name], [HR name if applicable]
At this meeting, we will discuss:
- The business reasons in detail
- The proposed changes and timeline
- How your role is affected
- [If applicable:] The selection criteria and process
- Alternatives to redundancy
- Alternative roles that may be available
- Support available to you
- Redundancy pay entitlement (if applicable)
- Your questions and concerns
Right to be Accompanied
You have the right to be accompanied at all consultation meetings by:
- A work colleague, or
- A trade union representative
If you wish to be accompanied, please inform me before the meeting so we can make appropriate arrangements.
Selection Criteria
[If using selection criteria, include:]
As there are [X] employees in similar roles, we will use objective selection criteria to determine which roles are made redundant. The proposed criteria are:
- [Criterion 1 - e.g., Skills and qualifications]
- [Criterion 2 - e.g., Performance record]
- [Criterion 3 - e.g., Disciplinary record]
- [Criterion 4 - e.g., Attendance record]
- [Criterion 5 - e.g., Experience and versatility]
These criteria will be discussed during consultation and we welcome your feedback.
Alternative Employment
We will make every effort to find you suitable alternative employment within the Company. Please let us know if you are interested in considering alternative roles, including:
- Different roles at the same level
- Roles at a lower level
- Roles in different locations
- Retraining opportunities
We will keep you informed of any suitable vacancies during the consultation period.
Redundancy Pay
[If employee has 2+ years' service:]
If your employment is terminated due to redundancy, you will be entitled to statutory redundancy pay of [£X] based on your [X] years of service.
[If enhanced redundancy pay:] In addition, you will be entitled to [details of enhanced redundancy scheme].
You will also receive payment for any accrued but untaken annual leave.
[If under 2 years' service:] As you have less than 2 years' service, you are not entitled to statutory redundancy pay. However, [if applicable:] you will receive [any ex-gratia payment the company offers].
Support Available
To support you during this process, the Company will provide:
- [Time off to attend job interviews]
- [Access to outplacement services / CV writing support]
- [Access to Employee Assistance Programme for confidential support]
- [Details of any other support offered]
Confidentiality
Please keep this matter confidential for now. We will communicate with all affected staff and the wider team at the appropriate time.
Questions Before the Meeting
If you have any questions before the consultation meeting, please contact me on [contact details].
I recognise this is difficult and unsettling news. Please be assured that no final decision has been made and your views will be genuinely considered.
Yours sincerely,
[Name] [Job Title]
Enclosed:
- Company redundancy policy
- [If applicable:] Selection criteria scoring matrix
- [If applicable:] Information about alternative roles
- [If applicable:] Redundancy pay calculation
Collective Redundancy Consultation Letter
Private & Confidential
[Company Name] [Company Address]
[Date]
[Employee Name] [Address]
Dear [Employee Name],
Collective Redundancy Consultation - Your Role at Risk
I am writing to inform you that your role may be at risk of redundancy as part of a collective redundancy process affecting [X] employees in [department/location/across the business].
What is Collective Redundancy?
Collective redundancy means we are proposing to dismiss 20 or more employees within a 90-day period. This triggers specific legal consultation requirements.
Background and Business Reasons
[Provide clear business rationale, e.g.:]
The Company has [experienced significant financial losses / lost a major contract / decided to close the [location] site / implemented a major restructure].
Following a thorough review, the Board has concluded that we need to reduce our workforce by approximately [X] roles across [department/location].
Affected Roles
The following roles/departments are affected:
| Department/Role | Number at Risk |
|---|---|
| [Department 1] | [X] roles |
| [Department 2] | [X] roles |
| Your role: [Job Title] | [X] roles |
| Total | [X] roles |
Your role of [Job Title] is one of those at risk.
Employee Representatives
As this is a collective redundancy, we are required by law to consult with employee representatives.
[If recognised union:] We will consult with [Trade Union Name] representatives on behalf of affected employees.
[If no union:] As there is no recognised trade union, we [have elected / will arrange election of] employee representatives to participate in the consultation process. [Details of election process if applicable.]
The employee representatives are:
- [Name, Department]
- [Name, Department]
They will represent your interests in collective discussions about the proposals.
Collective and Individual Consultation
There will be two levels of consultation:
1. Collective Consultation
The employee representatives will meet with management to discuss:
- The business reasons for redundancies
- Ways to avoid or reduce redundancies
- Selection criteria
- Procedures and timeline
- Support and mitigating measures
2. Individual Consultation
You will also have individual consultation meetings with your manager to discuss how the proposals affect you personally and to explore alternatives.
Timeline
The collective consultation must last a minimum of [30/45] days from [date of notification to representatives].
| Stage | Date |
|---|---|
| Notification to representatives | [Date] |
| Collective consultation begins | [Date] |
| Information meetings for employees | Week of [date] |
| Individual consultations begin | Week of [date] |
| Minimum consultation period ends | [Date - 30/45 days later] |
| Earliest dismissals take effect | [Date] |
Your First Meeting
You are invited to an information and consultation meeting:
Date: [Date] Time: [Time] Location: [Room/address] Attendees: [Manager name], [HR name]
Right to be Accompanied
You have the right to be accompanied by:
- A work colleague, or
- A trade union representative
Selection Process
[If pool of employees:] As there are [X] employees in comparable roles and [Y] redundancies required, we will use objective selection criteria.
The proposed selection criteria are:
- [Skills and qualifications] - [weighting]
- [Performance and productivity] - [weighting]
- [Disciplinary record] - [weighting]
- [Attendance record] - [weighting]
- [Experience and adaptability] - [weighting]
Each criterion will be scored objectively using [describe scoring method]. These criteria are subject to consultation feedback.
Alternatives to Redundancy
We are committed to exploring all alternatives, including:
- Reducing or eliminating overtime
- Stopping recruitment in other areas
- Reducing use of agency staff or contractors
- Offering voluntary redundancy
- Reducing working hours
- Redeployment to other roles
- Retraining opportunities
Please let us know if you have suggestions for avoiding or reducing redundancies.
Alternative Employment
We will actively search for alternative employment opportunities for you within the Company. This includes:
- Current vacancies
- Roles becoming available during consultation
- Roles in other departments or locations
- Opportunities for retraining
You will be given priority consideration for suitable alternative roles. Please indicate your interest in alternative employment at your consultation meeting.
Voluntary Redundancy
[If offering:] We are offering voluntary redundancy to employees in affected roles. If you are interested in volunteering for redundancy, please indicate this at your first meeting. Voluntary redundancy is not guaranteed and will be considered based on business needs.
Redundancy Pay
If you are ultimately made redundant, your entitlement will be:
[If 2+ years' service:]
- Statutory redundancy pay: £[amount] (based on [X] years' service)
- [If applicable:] Enhanced redundancy pay: [details of company scheme]
- Payment in lieu of notice: [X weeks at £X per week]
- Accrued holiday pay: [X days]
[If under 2 years:] You do not qualify for statutory redundancy pay due to service length. [If applicable: However, the company will make an ex-gratia payment of £X.]
Support Provided
The Company will provide support including:
- Paid time off for job interviews and training
- [Outplacement support/CV advice/interview coaching]
- Access to Employee Assistance Programme
- [Any other support measures]
Information Requests
You and your representatives may request information relevant to the consultation. We will provide this where possible and appropriate.
Confidentiality
Please keep this matter confidential until we have communicated with all affected staff and the wider team.
Questions
If you have immediate questions, please contact [HR/Manager] on [contact details].
I understand this is unsettling news. Please be assured that no final decisions have been made and the consultation process is genuine. Your feedback and that of your representatives will be carefully considered.
Yours sincerely,
[Name] [Job Title]
Enclosed:
- Company redundancy policy
- Selection criteria details
- List of employee representatives
- Summary of consultation process
- [Current vacancy list if applicable]
Follow-up Consultation Meeting Letter
[Company Name] [Date]
[Employee Name]
Dear [Employee Name],
Redundancy Consultation - Further Meeting
Following our meeting on [date], I am writing to invite you to a further consultation meeting to continue our discussions.
Meeting Details
Date: [Date] Time: [Time] Location: [Room/address]
Matters to Discuss
At this meeting, we will discuss:
- Feedback from the previous meeting
- [Any updates to proposals based on consultation feedback]
- Further exploration of alternatives
- [Alternative roles that have become available]
- Your views and any further suggestions
- [Update on selection scoring if applicable]
- Next steps
Since Our Last Meeting
[Update on any developments, e.g.:]
- Alternative roles that have become available: [list]
- Changes to proposals following consultation feedback
- Progress with voluntary redundancy applications
- Updated timeline
Right to be Accompanied
As before, you have the right to be accompanied by a work colleague or trade union representative.
If you have any questions before the meeting, please contact me.
Yours sincerely,
[Name] [Job Title]
Key Points for Employers
Collective Redundancy Thresholds
| Dismissals in 90 days | Minimum Consultation | Notify Government |
|---|---|---|
| 1-19 | Reasonable period | No (HR1 not required) |
| 20-99 | 30 days | Yes (HR1 form) |
| 100+ | 45 days | Yes (HR1 form) |
What You Must Consult On
- Business reasons for redundancies
- Ways to avoid dismissals altogether
- Ways to reduce the number of dismissals
- Ways to mitigate consequences (redeployment, retraining, etc.)
- Selection criteria and method
- How redundancy pay will be calculated
Selection Criteria Must Be
- Objective and measurable
- Applied fairly and consistently
- Not discriminatory (avoid age, disability, gender, pregnancy bias)
- Documented with evidence
- Subject to consultation
Common Mistakes
- "Consulting" after decisions are already made
- Insufficient consultation period
- Poor or discriminatory selection criteria
- Not genuinely considering alternatives
- Not offering suitable alternative employment
- Not providing adequate information
- Failing to involve employee representatives in collective consultations
- Not notifying government (HR1) for collective redundancies
Frequently Asked Questions
- How long must redundancy consultation last?
- For individual redundancies, there's no set minimum but you must allow reasonable time (typically 1-2 weeks minimum). For collective redundancies: 30 days minimum if 20-99 dismissals, 45 days minimum if 100+ dismissals, both starting from when you notify employee representatives.
- What must be discussed in redundancy consultation?
- You must genuinely consult on: avoiding redundancies, reducing numbers to be dismissed, mitigating consequences (alternative roles, training, time off for interviews). Simply informing employees of a done deal is not consultation.
- What happens if I don't consult properly?
- Employees can claim unfair dismissal (even if under 2 years' service). You may have to pay a protective award of up to 90 days' gross pay per affected employee. The dismissal may be automatically unfair, and you could face significant tribunal costs and compensation.