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£9UK law · England & Wales

UK Redundancy Letter Template

A formal UK redundancy notification letter following meaningful consultation. Sets out the reason, the selection, the notice period and the statutory redundancy pay calculation. Editable Word + PDF, £9.

Editable Word (.docx) + PDF · Re-download any time · UK GDPR compliant

Legal background

Redundancy is a potentially fair reason for dismissal under section 98 of the Employment Rights Act 1996. The process must include genuine consultation, fair selection criteria, consideration of suitable alternative employment and proper notice. Statutory redundancy pay is calculated on continuous service (2 years minimum), age-banded weekly pay, capped at £751 per week from 6 April 2026 (max statutory payment £22,530).

Sample excerpt

A short preview of the kind of clauses your generated document will contain. The full document is tailored to your inputs.

Dear [Employee Name], Further to our consultation meetings on [Dates] and your right to be accompanied at each, I am writing to confirm that your employment with [Company Name] will end by reason of redundancy on [Termination Date] (your "Last Day"). Reason. The redundancy arises because [reason — e.g. business closure / reduction in workforce / role no longer required following restructure]. Notice. Your statutory and contractual notice has been calculated as [Notice Period]. You will [work your notice / be paid in lieu of notice]. Statutory redundancy pay. Based on continuous service of [X] years, gross weekly pay of £[Y] (capped at £751 from 6 April 2026 where applicable), and the age-banded multiplier under section 162 of the Employment Rights Act 1996, your statutory redundancy payment is £[Z]. This is paid free of income tax up to the £30,000 statutory threshold. [Where applicable: Enhanced payment of £[A] under our redundancy policy.] Alternative employment. We have considered suitable alternative employment within the company; [there are no suitable alternatives currently / the available roles are set out in the enclosed list]. Appeal. You have the right to appeal this decision in writing within 5 working days. Appeals should be addressed to [Name].

What's in the template

  • Confirmation of redundancy decision following consultation
  • Reason for redundancy (business closure, workforce reduction, role change)
  • Selection criteria applied and how the employee scored (where individual)
  • Notice period (statutory minimum and any contractual enhancement)
  • Last day of employment
  • Statutory redundancy pay calculation breakdown
  • Any enhanced redundancy pay (if your policy provides)
  • Right of appeal
  • Reference offer and any outplacement support

Who this is for

  • UK employers concluding a redundancy process
  • HR functions documenting individual outcomes
  • Companies restructuring or closing a function
  • Employers wanting a defensible paper trail against unfair dismissal claims

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Frequently asked questions

How is statutory redundancy pay calculated?

Years of service (max 20) × weekly pay (capped at £751 from 6 April 2026) × age factor: 0.5 weeks per year for service under 22, 1 week for service 22–40, 1.5 weeks for service 41+. Maximum statutory payment: £22,530.

Do I have to consult collectively?

If you propose to dismiss 20 or more employees at one establishment within 90 days, yes — collective consultation under TULRCA 1992 (30 or 45 days minimum, depending on numbers). Below 20, individual consultation suffices but should still be meaningful.

What about settlement agreements?

For sensitive cases, an enhanced exit package via a settlement agreement (formerly compromise agreement) is common. Settlement agreements require independent legal advice (paid for by employer) for the employee — not covered by this template.

These templates are general legal information, not bespoke legal advice. For high-value or unusual matters, ask a solicitor to review.