Redundancy termination notice

Once you’ve completed your consultation procedure and you need to make an employee redundant, you must issue them with a formal notice of termination of employment.

Notice of redundancy

After the completion of your full and fair consultation procedure, you then need to decide whether or not an employee is to be made redundant. You must write advising them of the outcome of the redundancy consultation process and notifying them that their position is now redundant. It is only when the consultation process has been completed that final decisions to dismiss can be made and confirmed in writing to employees. Use our Redundancy Termination Notice for this. An employee has no statutory right to appeal against a redundancy dismissal. However, it’s advisable still to give the employee an opportunity to appeal as part of an overall fair procedure. Your letter should also confirm the position on notice, the date of termination of the employee’s employment and details of any redundancy or other pay due. There are also a number of other matters discussed in our letter. The reasons for these are set out below.

Redundancy payment

Where an employee has not acquired a minimum of two years’ continuous service with you when their employment terminates by reason of redundancy, and where there is no contractual right to an enhanced redundancy payment, you are not obliged to give any redundancy pay. Where the employee is entitled to a statutory redundancy payment, you must set out in writing how that payment has been calculated, and it qualifies for the £30,000 tax exemption. There is no upper or lower age limit on entitlement to a statutory redundancy payment.

Time off work

Those employees under notice of redundancy with at least two years’ continuous employment as at the date of termination have the right to take reasonable paid time off work to look for new employment, for example, attending interviews or appointments with employment agencies.

Ongoing duty

You have a duty to continue to seek alternative employment for an employee served with notice of redundancy up until the date when the employee’s employment terminates.