What do you say in a redundancy letter?
Your final redundancy letter should:
- Outline the purpose of the letter.
- Detail reasons for redundancy.
- Confirm the redundancy notice period.
- Discuss suitable alternative employment.
- Cover the employee’s right to appeal.
Is redundancy the same as notice?
If you’re made redundant, your job won’t end straight away – you’ll get a paid notice period. You might get notice pay instead of your notice period – this is called ‘pay in lieu of notice’. Your employer will tell you if they’ll give you pay in lieu of notice.
How do I write a letter to accept voluntary redundancy?
I [Employee Name], holding the position of [Employee Position], wish to be considered for voluntary redundancy. I understand that [Company Name] is not obliged to accept my application for redundancy. No duress or coercion has been placed on me in making this application.
Does my employer have to give me notice of redundancy?
If your employer has selected you for redundancy you must be given a notice period before your employment ends. The statutory redundancy notice periods are: at least one week’s notice if you have been employed between one month and two years. one week’s notice for each year if employed between two and 12 years.
What is the termination date when you pay in lieu of notice?
It is the actual date of termination that matters, not the date that termination would have occurred if notice had been given, and the employer should calculate payment under reg. 14 accordingly.
Does your employer have to give you notice for redundancy?
What happens if I volunteer for redundancy?
Once you volunteer to be made redundant It’s up to your employer if they select you for redundancy. Just because you volunteered to be made redundant doesn’t mean you will be. If you’re selected for redundancy, it’s important you get a letter from your employer confirming you’ve been made redundant.
How do I forward myself for voluntary redundancy?
When your employer is planning to make redundancies, you can choose to put yourself forward for redundancy before being selected (‘voluntary redundancy’). This can be done by either: your employer asking for volunteers. you offering (‘volunteering’) to be made redundant.
How is payment in lieu of notice worked out?
PILON or payment in lieu of notice allows an individual’s employment to be terminated immediately without them needing to complete or work their notice period. Instead, the employer pays the exiting employee the amount they would have earned had they worked their full notice period.
What should be included in pay in lieu of notice?
A payment in lieu of notice should include all the remuneration and benefits to which the employee would have been entitled under their contract during the notice period. This includes any contractual benefits such as health insurance, a car allowance or contractual bonuses.
Is it worth taking voluntary redundancy?
Opting for voluntary redundancy can benefit both the employer and employee. It allows them to end their professional relationship on a note of goodwill and gives the employee more time to prepare financially for losing their job.
Is it better to take voluntary or compulsory redundancy?
Voluntary redundancy packages typically offer more in terms of financial compensation to employees than compulsory redundancy.
Is it better to take voluntary redundancy or compulsory?
Do I need a solicitor for redundancy?
Your employer must follow the correct redundancy procedure or risk an Employment Tribunal ruling that a genuine redundancy is unfair dismissal. Employers will often consult specialist redundancy solicitors to ensure they are following a fair process.
When should pay in lieu of notice be paid?
Where you don’t have any provision for PILON you should pay all pay and benefits that would have accrued over the notice period. PILON should normally be made immediately on termination of employment.
Is pay in lieu of notice the same as severance?
Pay in lieu of notice is not severance pay. Severance pay is compensation provided to a terminated employee, while pay in lieu of notice is the payment of wages and benefits the employee would have been entitled to if they had worked during the notice period.
When do you need a redundancy letter for an employee?
Written notices will typically be needed to notify and inform employees at various stages of the redundancy process: A redundancy letter notifying an individual that their job is at risk of redundancy. A letter inviting the individual (or their representative) to take part in the redundancy consultation process.
Can an employee be paid in lieu of notice?
Where you’ve stated an employee isn’t required to work out their notice period and instead will be paid in lieu of notice, use our letter to confirm the PILON payment. You need to work out whether it’s a contractual payment or not. Contractual payment or damages?
What happens at the end of a redundancy consultation?
If, after a fair process has been conducted, it is decided that the outcome will be redundancy, a final meeting should be convened. At that final consultation meeting, an employer may be able to make an employee redundant. A formal outcome letter confirming the redundancy, also known as a letter of redundancy, should be issued to the employee.
Are contractual payments in lieu of notice taxable?
Similarly, contractual payments in lieu of notice are also treated as taxable earnings and subject to the full deduction of tax and NI. Our Letter Confirming Payment in Lieu of Notice refers to the original dismissal letter in which you would have stated that a payment in lieu of notice would be made.