Formal Redundancy Notice Economic Downturn Letter
Note for Employers: The Employer should be aware that, where you make a payment in lieu of notice and there is no contractual right to do so, there is a risk that you may not be entitled to enforce any restrictive covenants that are contained in the Employee’s contract of employment.
For employees with at least 2 years of service, or 1 year’s service in Northern Ireland, it is a requirement of a fair redundancy dismissal that employers consult with employees prior to dismissal for redundancy.
Amended letters are available for use when making short-serving employees redundant.
There is no requirement to enhance payments for those taking voluntary redundancy, though you may wish to do so. If you already operate an enhanced voluntary redundancy scheme you may wish to refer to this – or state that, in the circumstances, you are unable to offer this. If proposing to make 20 or more employees redundant please see our factsheet: Collective Consultation on Redundancy.
In relation to any cashflow difficulties you may experience making redundancy payments now, there is an existing scheme providing for advance funding in some cases. Further details may be found here: https://www.gov.uk/staff-redundant/redundancy-pay.