When an employee is made redundant, that means that the employer has determined that there is no longer a business need for the employee’s role and that their employment will be terminated. Redundancy letters are used by employers (usually following various consultations) to inform employees that they are being made redundant.
Before employers send out redundancy letters, there are certain steps that they usually take. These include:
- Establishing whether there is a genuine need for redundancy
- Identifying an appropriate pool of employees for redundancy (and meeting with these employees collectively)
- Sending follow-up letters after meetings setting out what was discussed;
- Scoring the redundancy pool against objective criteria
- Considering any alternative vacancies
- Consulting those affected individually
Redundancy letters are only sent to those whose employment will be terminated. These letters should, at a minimum:
- Confirm the employer's decision to dismiss the employee as redundant
- Specify the employee's termination date
- Explain the calculation of redundancy payment (and any other payments due to the employee)
- Confirm that the employee has the right to appeal and set out the appeal process