voluntary redundancy application letter

Exploring Voluntary Redundancy: A Comprehensive Guide for Employers

Introduction

Understanding Voluntary Redundancy: What is It?

Why Should Your Business Consider Voluntary Redundancy?

What is the Ideal Way to Offer Voluntary Redundancy?

What Should You Include in a Voluntary Redundancy Offer?

Can You Reject a Voluntary Redundancy Application from a Key Employee?

What are the Potential Pitfalls of Voluntary Redundancy?

Summing Up: Is Voluntary Redundancy Right for Your Business?

Faced with the difficult task of reducing their workforce numbers, many businesses find themselves navigating the intricacies of voluntary redundancy. This strategic approach is often a more favourable alternative to compulsory redundancies, as it reduces the burden of forced layoffs. Nevertheless, understanding the subtleties of voluntary redundancy and ensuring its successful implementation requires clear communication, strategic forethought, and transparency. This comprehensive article aims to provide an in-depth understanding of voluntary redundancy from the employer's perspective, highlighting its benefits, potential pitfalls, and best practices.

Voluntary redundancy is a mechanism where employers invite their employees to express interest in being made redundant. This self-nomination can greatly reduce, if not entirely eliminate, the need for compulsory redundancies. Employees who volunteer and are accepted for redundancy come to a mutual agreement with the employer to terminate their employment, thereby streamlining the redundancy process. As employees willingly step forward, businesses save time and resources that would otherwise be spent on the selection and scoring procedures in compulsory redundancy scenarios. This efficiency can significantly benefit businesses aiming to maintain high productivity while managing overheads.

Voluntary redundancy offers several advantages for businesses, making it a worthy consideration. Primarily, it helps minimize the risks and liabilities that come with compulsory redundancies. Given that employees actively contribute to the shared objective of terminating their employment, the likelihood of legal disputes or complaints arising is substantially lower. Furthermore, this approach can foster a more positive work environment. The organization's efforts to avoid compulsory redundancies are perceived positively, thereby potentially boosting staff morale during an otherwise challenging period.

The key to offering voluntary redundancy lies in the pillars of clear communication and diligent record-keeping. Employers must provide a clear and fair explanation of why redundancies are necessary. Such transparency can build trust and goodwill among employees. Additionally, considering various incentives to encourage employees to opt for voluntary redundancy is crucial. Besides financial incentives like enhanced redundancy payments, employers may consider other attractive offerings such as extended healthcare benefits or flexible work arrangements to make the redundancy package more appealing.

While voluntary redundancy has numerous advantages, it's important to acknowledge its potential downsides. One notable risk is that vital staff may opt for redundancy, potentially affecting the organization's operations. However, employers retain the right to reject any voluntary redundancy applications. Therefore, if an indispensable employee applies for voluntary redundancy, employers can refuse the application, provided they have a justifiable business reason.

Yes, employers can reject a voluntary redundancy application from a key employee. It's crucial to remember that while the voluntary redundancy process is meant to be fair and transparent, it does not obligate employers to accept all applications. Especially in the case of key employees whose roles are critical for business continuity, employers can reject their voluntary redundancy applications. However, this rejection must be justifiable and well-documented to prevent potential legal issues.

Despite its seeming simplicity, voluntary redundancy has its potential pitfalls. Notably, it should not be seen as an easy or default solution. Redundancies, whether voluntary or compulsory, should be considered only after exhausting all alternatives to avoid job losses. Additionally, while voluntary redundancy can speed up the process and reduce initial turmoil, it does not necessarily eliminate the need for compulsory redundancies in the future. This could lead to a dip in morale and an increase in resource expenditure.

In conclusion, voluntary redundancy can be a viable strategy for managing workforce reductions if executed with careful planning, transparent communication, and thoughtful consideration. An in-depth understanding of the voluntary redundancy process, its benefits, and potential pitfalls is essential for employers aiming for efficient and respectful workforce reduction. Adhering to responsible business practices and seeking expert legal advice can ensure compliance with all employment laws and regulations, making the redundancy process smoother and less stressful for all parties.

About Helium Law

The modern law firm that's fast, low-cost and transparent.

Helium Law is a new kind of law firm that uses AI technology to save time, reduce admin and give everyone a better experience and service. The more effectively our lawyers and clients work together in the Helium app, the more they earn or save. We ensure transparency on pricing by estimating case costs up front and tracking every minute real time in our platform so you stay in control.

Get in touch

Related Employment Services

Employment Law

Settlement Agreements

Senior Employee Exits

Redundancies and Business Re-organisations

Employment Contracts

Discipline & Grievance Procedures

Defending Employment Tribunal claims

Absence & Sickness Management

Continue reading

5 Smart Ways for Startups to Save on Legal Fees in 2024

Nick Holzherr

How to Find The Right Lawyer to Help Your Growing Tech Startup: A Founder's Guide

Stuart Renshaw

NDAs: Don't Roll the Dice on Your Business’s Confidentiality!

9 min to read

The Tech Law Firm that's fast, low-cost and transparent.

© All rights reserved Helium Law Ltd.

Letter Templates & Example

Employee Voluntary Redundancy Letter Template to Employer: Everything You Need to Know

Are you an employee considering voluntary redundancy? Or, are you an employer who wants to create a seamless process for your employees seeking voluntary redundancy? Look no further than the employee voluntary redundancy letter template to employer. This template provides a comprehensive guide for employees seeking voluntary redundancy and employers on how to handle such employees in a professional manner. Plus, the best part is that you can customize and edit the templates as needed to fit your specific needs. So, whether you are an employee looking to resign, or an employer wishing to initiate a streamlined voluntary redundancy program, this template makes the process uncomplicated and stress-free. Read on to discover how you can benefit from employee voluntary redundancy letter template to employer.

The Best Structure for an Employee Voluntary Redundancy Letter to Your Employer

If you have decided that it is time to leave your current job and are considering taking voluntary redundancy, you should prepare a resignation letter to your employer. Writing an effective letter requires a careful structure and consideration of how your employer may receive the news you are delivering. Here’s what you need to know to get started:

Firstly, begin your letter by addressing it to your direct manager or HR representative. You should officially state your intentions clearly at the beginning of the letter. Starting your letter by mentioning the reasons behind your decision. Ensure that you thank your current employer and use an appropriate tone throughout the letter. This should help to set the tone for the remainder of the letter.

Next, try to outline your reasons for leaving. It would help to provide closure to the employer and ensure that they understand why you are leaving. The reason mentioned in the letter should be genuine and not something that puts the employer in a bad light.

Then, you should confirm that you would like to take voluntary redundancy, along with details of when you intend to leave your current position. Specify the date of your resignation and whether you have any remaining days of work left. This helps to ensure your employer is clear about your intentions and has time to plan accordingly.

Additionally, it’s important to include information about how you plan on giving a smooth handover of your work tasks or projects to a colleague or the team. This ensures that your departure doesn’t cause any disruption to your employer’s operations.

Finally, close your letter with a polite and thankful note, thanking your employer for the opportunity they gave you while working for the company. Also, acknowledge that you understand that the process of redundancy may be tough for them too and highlight that you’re glad you could discuss the situation in an amicable manner.

In conclusion, the best structure of an employee voluntary redundancy letter should be clear, concise, and professional. Ensure that it’s well-thought-out, double-checked for any errors, and close off with a thank-you note, leaving them with a good impression before you leave.

Sample Voluntary Redundancy Letter Templates

Retirement voluntary redundancy letter.

Dear Human Resources Manager,

I am writing this letter to express my interest in the voluntary redundancy program. After over 30 years of dedicated service to this company, I have decided that it is time for me to retire and focus on other pursuits.

Throughout my career, I have had the privilege of working with incredibly talented individuals who have inspired me, pushed me to excel, and fostered an environment of growth and learning. I am immensely grateful for all the opportunities, responsibilities, and challenges this company has provided me with.

I have complete trust in the leadership of this organization and I am confident that it will continue to thrive and achieve new heights of success long after I depart. It is time for me to pass the baton to the younger generation and enjoy the fruits of my labor.

Thank you for your attention and assistance in this matter. I look forward to making a smooth and seamless transition to retirement.

[Your Name]

Family Care Voluntary Redundancy Letter

Dear HR Director,

Thank you for considering my request for voluntary redundancy. Unfortunately, my family circumstances have changed recently, and I am requested to take care of my elderly parents, who are suffering from multiple health issues, including dementia. This has made it difficult for me to maintain my current working hours and responsibilities.

As much as I value my work, my family is my top priority. It would be a great relief for me to be given the opportunity to exit the company with dignity and participate in the voluntary redundancy program. My family and I would appreciate any support you can provide regarding this request.

I am grateful for the opportunities this company has provided me with, and I will always cherish the memories and experiences I have gained during my time here. I am confident that this organization will continue to thrive and achieve great success in the future.

Thank you so much for your understanding and help.

Restructuring Voluntary Redundancy Letter

Dear HR Manager,

I am writing to express my interest in the voluntary redundancy program as the company is undergoing a restructuring process. I have been informed that my role may be at risk, and I believe that participation in the program could provide me with the opportunity to transition to the next phase of my career while minimizing the impact on the company and my colleagues.

Throughout my time in the company, I have acquired valuable skills, knowledge, and experience in my role, which I believe would be put to good use if I were to find work in another organization. I am very proud of the work that I have accomplished with my colleagues and I believe that this company has a strong future.

However, I recognize that the current circumstances require difficult decisions to be made, including staff reductions, and I hope that my participation in the voluntary redundancy program can help alleviate some of the budgetary pressures faced by the company.

Thank you for considering my application. Please do not hesitate to contact me if you have any questions or concerns.

Medical Reason Voluntary Redundancy Letter

I am requesting consideration for the voluntary redundancy program due to a medical condition that has made it difficult for me to perform my duties as usual.

The condition which I am suffering has had a significant impact on my ability to work, and although I have tried to find appropriate accommodations, the situation has not improved significantly.

It is with deep regret that I must leave the company and my colleagues, whose support and encouragement over the years has been invaluable. The services and products this company provides make a genuine difference to people’s lives and I have always been proud to be a part of it.

I am confident that my contribution and experience have added value to this organization, and I will always treasure the memories of the meaningful work accomplished with the team.

Thank you for your understanding and support.

Relocation Voluntary Redundancy Letter

I am writing to express my interest in the voluntary redundancy program because my family and I plan to relocate to another state, and unfortunately, I will not be able to continue my current role due to the distance.

This has been a difficult decision for us as I have enjoyed working with my colleagues and the company has been an important part of my career. I have appreciated the trust and support provided by my team and the opportunities for professional development available in the organization.

However, my family’s needs must come first, and we hope that my voluntary redundancy application would help facilitate the transition, both for me and for the company. I am committed to ensuring a smooth handover of my work, and I am happy to provide support during the transition period if required.

Thank you for your time and consideration. I wish the company the best for the future and look forward to remaining in touch with my current colleagues as friends.

Opportunity for Career Change Voluntary Redundancy Letter

I am writing to express my interest in the voluntary redundancy program, motivated by an opportunity to pursue a career change that I have been considering for some time.

While I have valued my time working for this company and appreciate the support and mentoring received from my supervisors and colleagues, I have realized that my passions and interests lie in a different field.

In particular, I have become very interested in the environmental sector and would like to explore the possibilities of entering this field. I understand that the voluntary redundancy program would provide me with the financial resources necessary to transition careers while supporting the company’s objectives in streamlining its operations.

I am grateful for the opportunity to have worked for this company and to have been a part of such a dedicated and talented team. The company’s mission and methods have always impressed and motivated me, but it is time for me to follow my passions and make the most of the opportunities presented to me.

Thank you for your support and consideration.

Personal Growth and Development Voluntary Redundancy Letter

I am writing to express my interest in the voluntary redundancy program, being motivated by the possibility of personal growth and development opportunities that may become available to me outside this organization.

Over my time with the company, I have grown both personally and professionally, thanks to the encouragement and inspiration of my colleagues and managers. I have gained valuable skills in my role and have deployed my knowledge for the betterment of the organization.

Despite my appreciation for this company, I believe that there are opportunities for me to explore further personal and professional growth. The voluntary redundancy program would allow me to take a leap of faith into new and uncharted territories, where I might acquire new skills, discover new passions and find new ways to put my skills to good use.

Thank you for considering my application and for the invaluable experiences and relationships I have gained over my time in the organization.

Tips for Writing an Employee Voluntary Redundancy Letter to Employer

Voluntary redundancy is a difficult decision to make, but in certain circumstances, it may be the best option for an employee. Crafting a professional and concise voluntary redundancy letter is vital, as the letter could potentially impact an employee’s professional future. Here are a few helpful tips for employees who are considering writing a voluntary redundancy letter to their employer:

• Start with a clear and concise message: Begin your letter by stating your intentions clearly. Outline your reasoning for requesting voluntary redundancy and express how grateful you are for the opportunities and growth that your current employer has provided you with.
• Be professional and respectful: Although redundancy can be an emotional process, it is essential to maintain a professional and respectful tone throughout your letter. Thank your employer for the support that they have offered you and express your willingness to cooperate during the transition period.
• Provide adequate notice: When planning to write a voluntary redundancy letter, ensure that you provide your employer with sufficient notice. This allows your employer to plan and prepare for your departure. Typically, a minimum of four weeks notice is sufficient to help your employer prepare and implement a transition plan.
• Provide relevant information: In the body of your letter, provide relevant information to your employer such as your final day of work, your job description, and the reasons for your redundancy. Your letter should also outline any specific details that your employer needs to consider such as outstanding projects, clients, or other relevant responsibilities.
• Express gratitude: In your voluntary redundancy letter, remember to express your gratitude to your employer. Thank them for the growth opportunities and support that they have provided you while you were employed. A thank you note is a great way to leave on a positive note and maintain a good professional reputation.
• Keep a copy of the letter: It is crucial to keep a copy of the voluntary redundancy letter for your records. Keeping a copy of your letter can serve as proof of notice, which can help protect your interests in case of any future disputes or legal issues.

In conclusion, voluntary redundancy is a complicated process, but if done correctly, it can pave the way for a bright professional future. By following these tips for writing a professional and respectful voluntary redundancy letter, you can leave your current job with a positive and professional note.

Employee Voluntary Redundancy Letter Template FAQs What is an employee voluntary redundancy letter template?

An employee voluntary redundancy letter template is a document that an employee can use to inform their employer of their intention to accept a voluntary redundancy package, while also providing a formal record of the communication.

Why would I use a voluntary redundancy letter template?

Using a voluntary redundancy letter template ensures that your communication to your employer is clear, professional, and formal. It also creates a record of your communication that can be referred to in the future.

How do I address the letter?

The letter should be addressed to your employer or the HR department. You should also include the date and your full name and address.

What information should be included in the letter?

The letter should include your intention to accept voluntary redundancy, the reason why you are taking this decision, the proposed date of your redundancy, and any other information that your employer may need.

What should I do with the letter once it is completed?

You should keep a copy of the letter for your records and send the original to your employer. This will ensure that you have a record of the communication and that your employer has received your request.

How long does my employer have to respond to my letter?

Your employer should respond to your letter within a reasonable amount of time. This will depend on the policies and procedures of your workplace.

What happens after my employer receives the letter?

After your employer receives the letter, they will review it and decide whether to accept or decline your request. They may also contact you for further information or to discuss the details of your redundancy package.

Cheers to a New Chapter!

Thanks for reading this article about employee voluntary redundancy letter templates to your employer. We hope that this guide has been helpful in giving you a general idea of what should be included in such a letter. Remember to always address the letter to the right person and indicate the intent to leave in a respectful and professional manner. Best of luck in your future endeavors! Don’t forget to visit us here on our site for more informative articles. Cheers to a fresh start!

Voluntary Redundancy Letter Template to Employer: A Comprehensive Guide Voluntary Redundancy Request Letter Template to Employer: A Guide Accepting Redundancy Letter to Employer Template: A Useful Guide Voluntary Demotion Letter to Employer Template: A Step-by-Step Guide 10 Key Elements to Include in Your Employment Contract Sample Nigeria Voluntary Termination of Employment Letter Sample - Format and Tips

Voluntary redundancy: Here's what you need to know about it

What does voluntary redundancy involve, and how should you tackle it with the boss?

• Sign-up to our newsletter

Everything you wanted to know about how to ask for voluntary redundancy...

Redundancy doesn’t always have to be a term that’s loaded with fear. For some, it’s a rare opportunity to start again if your job is no longer working for you. Here’s how to ask for voluntary redundancy and find out if it is the right option for you.

‘If you’re offered voluntary redundancy by your employer, you should think carefully before making a decision,’ advises Lynn Cahillane, spokesperson for employment agency, Reed . ‘There’s no obligation for you to accept the terms offered by your employer. However, they are usually more lucrative than those that come with a standard redundancy payment.’

Although the idea of a lump sum may seem attractive at first, there are a number of things you should consider before opting for redundancy. ‘Firstly, always ensure that you are in a financial position to do so by working out an appropriate budget,’ says Cahillane. ‘This will help show how feasible voluntary redundancy is for your situation and provide you with a timespan of how long you can financially go without working. After your redundancy, you may be eligible for certain state benefits including jobseeker’s allowance or income support. It may be useful to take these into account when working out your budget. However, there are a number of requirements to meet in order to qualify, so be sure to check online or with your local Jobcentre Plus first.’

It’s also advisable to speak to your bank manager or financial advisor before making a decision, to make sure you’re aware of all your financial options. ‘Ultimately, there’s no wrong or right answer when it comes to voluntary redundancy,’ adds Cahillane. ‘It’s a personal decision and it comes down to how confident you feel about making it. If you do decide that voluntary redundancy is definitely the right option for you, all that’s left to do is inform your employer that you have accepted their terms and get started looking for a new opportunity.’

When it comes to raising the subject with your boss, it’s all in the approach, according to Caroline Goyder, career coach, author of Gravitas: Communicate with Confidence, Influence and Authority  and speaker at Penguin Living Careers 360  - but once you know how to ask for voluntary redundancy, it's straightforward enough.

Marie Claire Newsletter

Celebrity news, beauty, fashion advice, and fascinating features, delivered straight to your inbox!

‘The Romans said Gravitas gave people influence, weight, authority, dignity and seriousness,’ says Goyder. ‘And the quality that matters most when it comes to making a big ask such as voluntary redundancy is your influence. When you make the ask, you want to make sure you are going to be heard. We are most likely to be influenced by those we like, and who want to help. We generally like people like us, or people we want to be like. If you want to be heard when you approach your boss with a request such as voluntary redundancy you want to make sure that they are minded to help you.’

Here she shares her advice on how to ask for voluntary redundancy and get the result you’re after...

How to ask for voluntary redundancy

These are Caroline's top tips on how to ask for voluntary redundancy...

Build obligation : It helps if you have helped them in the past. If you are even considering asking you boss for voluntary redundancy make sure you build up some obligation before you have the conversation.

Find a common purpose: A fast strategy to build influence with someone - used by hostage negotiators, no less! - is to have a common enemy, or a common purpose [whether that’s to save on budget or improve the output of the business]. Consider what you both want - or what you both dislike about the current working scenario.

Get the timing right: Studies show we make better decisions when energy and blood sugar is high. Work out when is the best time of day to approach your boss. Look for a positive mood, and good energy. Make your pitch when the mood is right.

Express the why: Telling your boss why voluntary redundancy matters to you is a key technique to build influence. In a famous influence experiment, people jumped the queue to a photocopier. When the queue jumper asked, 'Excuse me, would you mind if I jump the queue?' only 32 per cent let them push in front. But when the same individual asked, 'Do you mind if I jump the queue because I’m in a hurry?' the positive response surged to 92 per cent. So, make sure you give a good reason why voluntary redundancy matters to you.

Listen : If you want to be heard, and taken seriously, listening is the superpower. Why does it matter? Because when we give others the full benefit of our attention, empathy and understanding, we are more likely to be heard ourselves - via the human instinct for reciprocity. Above all, when you listen you need to find out what is driving your boss in the business. Bosses, like all humans are motivated by what they want - team morale, boosted profits, a pay-rise and by what they fear - poor results, loss of team confidence, job losses, reduced profits, cuts in bonuses etc.

Ask questions, and listen to the answers. Find out what matters to your boss and then frame what you want using their language. If they talk about their need to boost the morale of the other workers, then acknowledge that, echoing their words ‘You've said it's important to you that the other members of the team feel secure about their roles, and that morale is boosted.’ This principle of "matching language" comes out of deep listening and is an authentic way to build influence. If you can highlight what they will gain from you taking redundancy, or lose by you not taking it - then they are likely to be influenced by you. Negotiation is at heart of making sure that both of you get what you want - so take time to find out what matters to your boss.

Don't say too much . Avoid the runaway train garbled speech that can afflict us all when nerves hit . If in doubt, pause, breathe, let someone else fill the silence. Silence is essential when it comes to the "dismissal meeting" where your severance package is discussed. Lawyers advise that you shouldn't agree, or disagree with the initial departure terms offered in the meeting itself, but rather request that proposals are put in writing - before you weigh up what you want. So, practise the simple principle of: finish sentence, close mouth, pause, breathe, wait for someone else to speak. Even if there is a long-ish pause you wait, breathe and ground yourself.

Be able to walk away . The most powerful negotiation tactic of all is to be able to walk away from the table if necessary. Greta Garbo, the iconic Swedish film actor was already a Hollywood star, with huge box-office success, when she entered negotiations on a new a contract to reflect her impact on her movies’ takings. She requested a weekly fee of $5,000 - a huge boost from the paltry $350 a week she'd previously been paid. Legendary Film producer Louis Mayer responded to Garbo's request with what was to her an unacceptable $2,500. Garbo replied simply ‘I think I go home..’ and she went back to her hotel and remained there for seven months, until Mayer agreed to give her exactly what she wanted... And while the rest of us don't get to play the diva, we all have the agency to walk away when decisions aren't right for us. And that's key to a strong negotiating position.

Can you spot the significance?

By Lauren Hughes

By Jenny Proudfoot

The earrings that amounted to a 2,000 waitlist are back

By Sofia Piza

• Site Archive
• Contact Future's experts
• Terms and conditions
• Advertise with us
• Privacy policy
• Cookies policy

Marie Claire UK is part of Future plc, an international media group and leading digital publisher. Visit our corporate site . © Future Publishing Limited Quay House, The Ambury, Bath BA1 1UA. All rights reserved. England and Wales company registration number 2008885.

• Request a demo

The ultimate guide to voluntary redundancy

Rowan Dent, Content Writer

| 21 Aug 2018

| 7 min read

• Copy to clipboard
• Share on Facebook
• Share on LinkedIn

For most people the word ‘redundancy’ elicits a shudder of horror. But laying off staff doesn’t have to be the stuff of nightmares – voluntary redundancy can be an opportunity to scale back without damaging a company’s reputation or unsettling employees. With that in mind, this guide explains everything you need to know about the voluntary redundancy process.

Is this a voluntary redundancy situation?

Unemployment in the UK may be at its lowest since 1975 but the picture certainly doesn’t feel rosy for many businesses. With nearly 100,000 redundancies last year in the UK, it’s likely that many HR professionals and business leaders will be tasked with it at some point in their working lives.

That said, the first and most important step is to ensure you're really in a redundancy situation. Review your finances and check your options before you jump into laying off staff you may need to re-hire in the future. 

If you're losing substantial business and revenue, it might be tifme to scale back. 

What is voluntary redundancy?

Voluntary redundancy is offered when employers don’t want to resort to compulsory redundancy. The company will send out a voluntary redundancy letter to all eligible employees asking for volunteers to be made redundant.

If too few people volunteer for redundancy, compulsory redundancy may still be necessary for some people. But the fewer compulsory redundancies made, the lower the number of potential legal claims – not to mention a happier final workforce.

The idea is to make voluntary redundancy more attractive to employees, to avoid the unpleasantness of having to pick and choose individuals to be made compulsorily redundant. A voluntary redundancy usually involves a greater payout than compulsory redundancy. Employees can also negotiate their voluntary redundancy notice period and benefits.

What is the voluntary redundancy process?

Every employer must follow the proper voluntary redundancy process. The first step is to write a voluntary redundancy letter explaining the situation and asking for members of staff to volunteer.

By being truthful and transparent about the difficulties the company is facing, managers can build trust with their employees and avoid any whispering by the water cooler. It’s a good idea at this point to set up a point of contact for people who have questions.

Employers must also be prepared for staff to ask about the voluntary redundancy pay package and any other incentives you’re offering. Ensure you’ve decided these details in advance so there’s no confusion or loss of trust at this stage.

Employees who volunteer for redundancy still need a consultation   

Employees who volunteer to be made redundant are still legally considered to have been made redundant. They also have the same rights. This means they have a legal right to consultation. 

Consultation involves an employer speaking to staff about why they’re being offered voluntary redundancy and any alternatives which may be on the table. 

What are collective redundancies?

If an employer is making 20 or more employees redundant at the same time, the consultation should take place between the employer and a representative (rep).

If the company is represented by a trade union, this will be a union rep. If not, an employee will be elected as rep. 

Collective consultations must cover:

• Ways to avoid redundancies.
• The reasons for redundancies.
• How to limit the effects for employees involved, for example by offering retraining. 

For 20 to 99 redundancies, the consultation must start at least 30 days before any dismissals take effect. If 100 or more people are being made redundant this needs to start at least 45 days in advance. 

You need to allow your employees time to find a new job 

Of course, even with voluntary redundancies people still need time to find new jobs and retrain if necessary. If an employee has been continuously employed for two years by the end of their notice period, they’re legally allowed a reasonable amount of time off to look for another job. They can also use this time to arrange training or re-skill. 

However, no matter how much time an employee takes to look for another job, the employer only has to pay 40% of one week’s pay.

Read next: 9 signs that your employees are disengaged (& how to re-energise them)

How does voluntary redundancy pay compare to statutory redundancy pay.

Often, payments for voluntary redundancy are larger sums than statutory redundancy pay. This makes it appear more financially attractive for an employee to agree to terminate their contract. It’s up to the employer whether additional benefits such as pension scheme and private health insurance are continued for the duration of the voluntary redundancy notice period.

In legal terms, managers offering voluntary redundancy only have to provide statutory redundancy pay, and then only if the employees have been working at the company for over two years. However, you’ll need to tread carefully if you want to attract enough volunteers for voluntary redundancy and maintain employee satisfaction.

Here’s a handy table to work out how much statutory redundancy pay is owed:

• For each full year that you were under the age of 22, you receive half a week’s full pay.
• For each year worked between the age of 22 and 40, you receive a whole week’s full pay.
• For each full year worked aged 41 and over you receive one and a half weeks’ full pay.

For example, if you were made redundant on or after 6 April 2018, your weekly pay is capped at £508 and the maximum statutory redundancy pay you can get is £15,240. If you were made redundant before 6 April 2018, these amounts will be lower.

Remember: Redundancy pay (including any severance pay) under £30,000 isn’t taxable.

Check out this statutory redundancy pay calculator to find out exactly how much would be owed.

Strategies for using voluntary redundancy

The obvious disadvantage of voluntary redundancy is that the employees most likely to volunteer for redundancy are often those the employer would least wish to lose, namely the good performers who are able to find a new job pretty easily.

Employers can avoid this by making it clear that not all offers of voluntary redundancy will be accepted, and then refuse applications from employees they wish to keep.

A voluntary redundancy strategy isn't without risk

But this idea isn’t without risk. Employees who are compulsorily made redundant later on may complain that their jobs could have been saved if the voluntary redundancy applications had been granted. In short, their dismissals are unfair. Employers need to have clear reasons – supported by records such as appraisals – for keeping employees whose voluntary applications were refused.

Commonly used – and usually fair – selection criteria include skills, experience, performance, disciplinary records and attendance (adjusting for serious illness, family leave and other legitimate reasons).

But it’s not just about trimming the fat. An employee whose application for voluntary redundancy is turned down is likely to feel pretty demotivated, further damaging staff morale .

Can you view voluntary redundancy as early retirement? 

Employees nearing retirement age might be keen for a little extra cash before they start taking their pension. However, employers should be wary of targeting older employees for voluntary redundancy as this could amount to age discrimination.

What impact can voluntary redundancies have? 

Lay-offs tend to increase employees’ levels of stress and decrease morale, job satisfaction, and trust. One survey found that 73% of survivors felt demoralised, 64% felt demotivated, and 74% said they shut down and turned off. In other words, just when a company needs its staff to pull out all the stops, they stop playing altogether.

Such perceptual changes are linked to greater turnover, diminished willingness of employees to help one another, and poorer job and company performance. Not exactly what you had in mind.

Time to reassure and reassert

Any manager taking on a redundancy situation needs to help employees see the downsizing process as fair and show that every other option had been considered first.

Reassuring measures such as a moratorium on future lay-offs, might also be helpful. One study by Harvard Business Review found that the anticipation of downsizing can have an even stronger negative effect than layoffs themselves on employees’ feelings about their work environment.

Everyone has heard a nasty redundancy story. People fired at a staff meeting, tears over the coffee machine – these stories travel and they can seriously damage a company’s reputation. After all, who would recommend an employer who doesn’t treat their staff with basic respect?

Redundancy doesn’t need to be a terrible thing – in fact it’s an opportunity to show how communicative and respectful you are to your employees. A few compassionate touches can mean the difference between your company preserving its glowing reputation and becoming a byword for nastiness.

Case study: How to keep your most talented employees

When media conglomerate Time Warner laid off employees in its corporate office in 2008, management ensured that the exit booklet contained more than the standard legal info. Instead, it offered options.

Warner’s HR staff searched thousands of job postings within the company to create lists of open positions, customised for each person being let go. If they chose to apply, the departing employees would be offered preferential ‘current employee’ status. These talented people were also flagged up to divisional heads of department to smooth the way to a new position.

In tough times, a company which cares about every employee – even the ones who get fired – creates the kind of loyalty that isn’t forgotten.

It’s in your hands

Ultimately it’s up to you to decide whether voluntary redundancy is right for you and your company. Whatever your decision, you can make voluntary redundancy a success by communicating well with your employees and being fair and transparent at every stage of the process.

As ever, if you have doubts about the legal implications of your decisions be sure to get legal advice – it’s always better to avoid your name coming up at an employment tribunal.

Build a great employee experience with Perkbox

Learn how we can help level-up your employee experience

Create an experience your employees love —  no matter where they are.

• Create a culture of appreciation that engages employees 
• Support all areas of employee wellbeing

Other resources you might like...

5 tips to help your employees with stress, 7 employee engagement strategies that work in 2024, top tips to help your employees through ramadan, international women’s day: stories from our perkboxers, our form uses cookies.

Our cookies are used to give you the best experience. Accepting our cookies allows us to send you the information you requested. Don’t worry, we won’t share your personal information with third party providers unless we have your explicit consent.

Link copied to clipboard!

http://www.something.com/

We use cookies to improve your experience of our website.  You can find out more or opt-out from some cookies .

Choosing voluntary redundancy

Your employer might ask if anyone wants to take voluntary redundancy.

You should think carefully about whether voluntary redundancy is right for you, including whether you’ll get any redundancy pay and how it will affect things like claiming benefits or your mortgage.

If you volunteer, it’s up to your employer if they select you for redundancy.

Making sure voluntary redundancy is right for you

You should think carefully about how voluntary redundancy will affect any money you’re entitled to.

Check the redundancy offer

Ask your employer what the redundancy package will be. Sometimes employers offer incentives for taking voluntary redundancy, like extra redundancy pay or not having to work your notice period.

You’ll also still get any other redundancy rights you’re entitled to, like time off to look for a new job. GOV.UK has more info on redundancy rights .

Claiming benefits

You might be able to claim benefits like Universal Credit after taking voluntary redundancy -  check what benefits you might be entitled to .

If you have a mortgage protection policy

You should check your mortgage protection policy to see what it says about voluntary redundancy.

Voluntary redundancy is usually excluded, meaning they won’t pay your mortgage payments after your redundancy.

 You can ask to be made compulsorily redundant instead -  c ontact your nearest Citizens Advice  if you need help speaking to your employer or understanding your options.

Planning for after redundancy

Read more about budgeting, training and finding a new job after redundancy.

Once you volunteer to be made redundant

Your employer will select the people to be made redundant from everyone who volunteered.

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.

You’ll need to show this letter to an employment tribunal later if there are any problems (for example, your employer doesn’t pay your redundancy pay).

You’ll still get any redundancy rights you’re entitled to, like time off to look for a new job. You might also be able to negotiate your notice period with your employer.

Taking early retirement instead 

If you’re close to retirement, your employer may suggest you take voluntary early retirement instead of voluntary redundancy.

You need to look carefully at the financial impact of each option, including how it will affect:

any occupational or personal pensions you have

any benefits you might be entitled to

the redundancy package you’re being offered

Read more about pensions and money after retirement .

Contact your nearest Citizens Advice  if your employer suggests you take early retirement instead of voluntary redundancy.

Please tell us more about why our advice didn't help.

Thank you, your feedback has been submitted.

Additional feedback.

For Your Business

For employees.

See if you qualify, Get a response in 72 hours.

Free 15 minute consultation

Call for a free 15 minute consultation 0330 221 0684

• HR and Employment Law Advice
• Commercial Contracts
• Employment Law
• Settlement Agreements
• Advice for Senior Executives
• No Win No Fee
• Independent Legal Advice

Blog Employment Law

Choosing Voluntary Redundancy: A Guide and FAQs

If your employer is looking to cut costs and reduce spending, they may offer you a voluntary redundancy package to terminate your employment in exchange for a more generous pay-out. What does this mean for you as an employee? And should you accept this offer? Click here for more information about how a redundancy solicitor can help you.

What is voluntary redundancy?

Voluntary redundancy is when an employer offers to make an employee redundant (with their consent) and terminate their employment in exchange for a generous pay-out.

This pay-out is usually more than a statutory redundancy payment as the employer will need to provide additional incentive for the employee to take voluntary redundancy. The package will usually consider the employee’s length of service, notice period and contractual benefits. For example, it may be 2x your weekly salary for every year of service.

However, every employer will offer a different package and as it is voluntary, there may be scope for the employee to negotiate this package. On the other hand, the employer may withdraw their offer of voluntary redundancy on this basis so it is important to be realistic with requests and tread carefully.

Employees can also volunteer and ask for voluntary redundancy if they are aware that their employer will be making compulsory redundancies soon. We have prepared a draft letter for employees to consider when requesting voluntary redundancy below.

Should I take voluntary redundancy?

This is a difficult question and it will depend on your personal situation. We would suggest that you contact our team for bespoke and tailored legal advice on your position and options in your situation.

However, in any situation you should consider whether the voluntary redundancy package offered contains appropriate additional incentive. For example, you may be offered an amount in excess of the statutory redundancy package, or you may be paid in lieu of notice.

Other things worth considering include:

• Do you have a mortgage protection policy? Voluntary redundancy is usually excluded from policies, so your mortgage payments are unlikely to be covered. An alternative may be compulsory redundancy.
• Are you considering claiming benefits? If you opt for voluntary redundancy you may be entitled to claim specific benefits.
• Are you planning for retirement? Opting for early retirement may be a more beneficial exit package if this scheme is available.

The voluntary redundancy process

Whether you have been selected for voluntary redundancy or compulsory redundancy, your employer must still go through the same process and follow voluntary redundancy rules as you have the same legal rights. This will include a consultation process to discuss details of the redundancy, to answer your questions and to inform you of your rights. If the employer fails to follow a fair redundancy procedure, you may be entitled to a claim for unfair dismissal.

Another key thing to remember is that voluntary redundancy is optional. Your employer may propose voluntary redundancy, or you may volunteer for the scheme, but it is the employer that will make the final decision on who is selected for redundancy.

What to include in a voluntary redundancy letter [Letter template]

If you wish to be considered for voluntary redundancy, it is helpful to send your employer a letter setting this out in writing. We have prepared a voluntary redundancy letter template below:

Dear [name],

I understand from [our discussion/your letter dated xx.xx.xxxx] that the business is considering making compulsory and voluntary redundancies.

I am writing to formally apply for voluntary redundancy. Can you please provide me with details of the voluntary redundancy package so that I can make a fully informed decision and confirm my application thereafter.

I look forward to hearing from you in the near future.

Yours sincerely,

Voluntary Redundancy FAQs

Can i be turned down for voluntary redundancy.

Voluntary redundancy is optional for both the employee and employer. If the employer does not feel that you would be a suitable applicant for voluntary redundancy, they would be within their rights to reject your application. Of course, your application cannot be rejected for a discriminatory reason.

Can I take voluntary redundancy if I have a job offer?

You may need to wait a period of time after accepting voluntary redundancy before starting a new job. This may be because you will need to complete your notice period, or your contract may have restrictive covenants. It will depend on the redundancy agreement between yourself and the employer and we would suggest that you contact us for specific legal advice before potentially breaching the agreement.

Should I take a voluntary severance package?

This is a difficult question and it will depend on your person situation. We would suggest that you contact our team for bespoke and tailored legal advice on your position and options in your situation.

To find out more about the employment law services we offer, reach out to KLG Law today. Our solicitors specialising in employment law can assist in legal matters for both employers and employees. Please contact our team of employment law specialists on 0330 221 0684 or contact our legal team online.

Related Blogs

Springing into action: all employment law changes set to apply from april 6th, proposed paternity leave changes – draft legislation published, new employment law changes up ahead – february 2024 klg newsletter.

GET IN TOUCH

Do you need help? Request a consultation now.

KLG are always here to help. To arrange a free 15 minute introductory consultation call, where we can identify your needs and show you how we can support your business or you as an individual. Please complete our form.

Successful Voluntary Separation (Redundancy) Application Letter

Try using genie's free ai legal assistant.

• ‍ Ask anything about the document to better understand the language
• Customise the document by explaining your situation and task and it will suggest better wording for different clauses.
• Import any document and use our AI Risk Review feature to highlight high, medium and low risk clauses (Coming October '23)
• Create any new document from scratch (Coming October '23)

Open any document on Genie and our AI Legal Assistant will appear.

Sign up and try our AI Legal Assistant freely today

Create doc / use template

Chat to our AI Legal Assistant

Edit, collaborate & share

Export to .docx

Templates properties

successful_voluntary_separation_(redundancy)_application_letter_template.docx

England and Wales

Free to use

Agriculture, Forestry and Fishing

Construction

Manufacturing

Real Estate

Legal Services

Consultancy

Public Administration

Sport & Entertainment

✒️ Redundancy letter

A redundancy letter is a letter that an employer gives to an employee to inform them that they have been made redundant. The letter will state the reason for the redundancy, the date of the redundancy, and the employee's entitlements.

Offer voluntary redundancy

Easy-fill with questionnaire

Tweak with our online editor

Export to .docx format

Save, clone, print & share

Similar legal templates

Advisor agreement (payment via share options), consultancy agreement - company appointing an individual consultant (not using a personal service company), senior employment agreement (genie), website privacy policy, intellectual property assignment (for founders to assign ip to company), intern agreement letter, saas (software) subscription agreement (pro-supplier), one way nda uk, saas agreement (yc).

YCombinator

United States

Commercial Lease (for Mutuals & Cooperatives)

UK Government

Standard Notice By Tenant Indicating Preference To Deal Directly With The Other Landlord

Standard notice to complete by tenant (served on landlord), try the world's most advanced ai legal assistant, today.

01244 893776

Offering voluntary redundancy – what employers need to know.

James Rowland

Commercial Director

Download Our Free UK Employment Law Guide For Businesses

Offering voluntary redundancy is a way that employers can reduce the size of their workforce by asking employees to voluntarily terminate their contracts in return for a financial incentive. This is in contrast to standard redundancy proceedings where employers select employees at risk of redundancy themselves. 

Although nothing new, following a tumultuous couple of COVID filled years, redundancy is a word that both employers and employees are now a lot more familiar with. Whether you’ve heard of voluntary redundancy or not, navigating the procedures and conversations surrounding this dismissal process can be a challenging and stressful time for all involved.

It is therefore a good idea to have redundancy experts on hand to support you when looking to make difficult business decisions around reducing the size of your workforce and exploring the options available to you.

When To Offer Voluntary Redundancy

Making redundancies is never an easy decision, and it should only be considered when no other viable business alternatives are available. If your business can no longer support the number of staff you have or you need to cut costs to continue trading, one of the most efficient ways to save money is to reduce headcount.

When you are considering redundancy, you can allow employees to volunteer for redundancy before you move to make compulsory redundancies which can be beneficial for overall company morale. 

HR And Redundancy Advice For Employers 

Neathouse Partners provide  redundancy advice for employers . Our solution-driven, personal service ensures that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practice and employment law, regardless of how complex the issue may seem. 

Our team aims to free up your time to focus on running a commercially successful business, safe in the knowledge that you are 100% compliant with all aspects of UK Employment Law.

Redundancy is a challenging process that must be handled correctly to ensure employers don’t leave themselves open for employment tribunals and discrimination claims . It’s therefore important to have experienced HR support from a team that can advise you every step of the way, and Neathouse Partners can help. 

Our expert team is experienced in guiding all manner of businesses through both redundancy and voluntary redundancy proceedings. We can help you to deal with difficult discussions in a sensitive manner they need as you navigate the challenging period of redundancy and restructuring. We aim to help you to ensure that employees are treated fairly, whilst maintaining the morale of the rest of the workforce 

________________________________________________________

Need help managing voluntary redundancy? 

Fill out our  contact form  or call us on 01244 893776

Read on to find out more about voluntary redundancy including what it is, how to manage it, and the pros and cons to be aware of. 

What Is Voluntary Redundancy? 

Voluntary redundancy is when employers encourage employees to resign voluntarily in return for financial incentives and is often a preferred option to compulsory redundancies or layoffs for both employers and employees. 

Who Can Volunteer? 

Any employee can volunteer to be made redundant once you have advised the workforce that redundancies are being considered, but you do not have to offer voluntary redundancy to everyone, and you do not have to accept an employee’s voluntary redundancy.

Employers can also select employees at risk of redundancy and offer them the chance of voluntary redundancy before compulsory redundancy is made. 

Employees can’t request to be made redundant at any other time as an alternative to handing in their notice in line with your usual contract termination process. Only when redundancies are being considered by the business can self-referrals be made. 

As an employer, you do not have to agree to submissions of voluntary redundancy. For example, you may find that somebody who is highly skilled and a great asset to the business has put themselves forward, but it would be detrimental to the business to let them go so you do not have to accept their offer. 

When To Offer

As reducing headcount is one of the most efficient ways to save money, redundancies are usually considered when cost savings need to be made. 

Businesses need to be profitable to survive, and when it comes to making cost-savings, some common options to consider include removing a product or service that isn’t making money, closing a branch or office that is no longer financially viable, or reducing staff headcount. 

Redundancies should be a last resort and there are strict tests that need to be met to ensure redundancies are the only way forward. Employers must therefore be able to prove that there is a genuine need to make redundancies and no other viable option exists such as providing the employee with alternative work, changing their place of work or offering a new role. 

If the amount or kind of work that your employees have been doing is going to stop or has already stopped, then the tests of redundancy have been met.

The following examples are common reasons for employers having to make redundancies at work: 

• A downturn in the business means staff in certain roles are no longer needed
• If an employee’s skill set is no longer needed – due to new business processes, automated technology or outsourcing for example
• If the job an employee was employed to do no longer exists, often because it is being done by other people – this is common in the case of company mergers. 
• The business has ceased trading or will soon be closing down
• The business is relocating 
• The business transfers to a new employer 

Process To Follow

If you have decided that voluntary redundancy is the route that you need to take at your organisation, then there are strict steps that employers must follow to meet their legal obligations and ensure they are not left open to claims of unfair dismissal or discrimination. 

It’s worth noting that there is a significant overlap between voluntary redundancy and the compulsory redundancy process, and you can find more about this, including redundancy consultation notice periods  here . 

Voluntary Redundancy Process Overview

• Make sure that no alternatives to redundancy exist such as reducing benefits, working hours or other overhead costs. 
• Notify staff that redundancies are needed and invite any volunteers to come forward. At this point, you should be as open and honest with your employees as possible as to why the situation has arisen, and what other options were considered. 
• Typically, voluntary redundancy should be offered to those who would be at risk of compulsory redundancy but it can be offered to the entire company. 
• Outline any incentive that accompanies your offer of voluntary redundancy. This could include higher payments or bonuses when compared to statutory redundancy entitlement to make the prospect more appealing and incentivise staff to put themselves forward for consideration. 
• You should have a redundancy policy in place. It is advisable for this to clearly state that you reserve the right not to accept all voluntary redundancy applications. This can help to protect the business from losing a particular skill set and experience that would be detrimental to the business success should certain members of the team put themselves forward. 
• You must be very careful not to pre-select candidates at risk of redundancy, or shortlist those who have volunteered based on any protected characteristics such as gender, race, sexual orientation , marital status, age or disability etc. Breaching this can leave the business open to claims of discrimination. 
• Employees should have clear and justifiable business reasoning behind making redundancies 
• Any volunteers that are selected for voluntary redundancy must then be treated as being made redundant and not that they have chosen to leave their role. This will ensure they receive redundancy pay if eligible alongside their full notice period .

Are There Any Benefits? 

Letting go of staff is never an easy decision, but voluntary redundancy doesn’t have to be all doom and gloom, as there are some benefits available for employers considering voluntary redundancies. 

• Voluntary redundancy could reduce the need to make compulsory redundancies
• Voluntary redundancy is likely to have less impact on the workforce than enforced redundancy 

By offering voluntary redundancy to your employees, you may find that some members of the team are already considering their position at the firm, either due to unhappiness in their role or impending retirement for example. 

In these cases, they may be happy to accept voluntary redundancy which would remove the need for management teams to go through the difficult process of selecting employees for redundancy, which can be stressful for all parties involved. 

Voluntary redundancy is generally viewed as a more positive outcome than compulsory redundancy. If staff self-select themselves to leave, then the impact on overall company morale is likely to be more positive than during a period of enforced redundancy selections , where it’s not uncommon to see the workforce become disengaged and anxious. 

When employees put themselves forward for redundancy, this is of their choosing and removes the negative, emotional feelings usually experienced and directed at management with standard redundancy discussions. 

Negative Outcomes

Sadly, there will always be negative outcomes of voluntary redundancy too including; 

• You could lose your best staff
• The cost involved could potentially be higher
• You may have more volunteers than you can offer voluntary redundancy for

Staff with long periods of service at the company are entitled to receive better redundancy payouts than those with a few years of service under their belt. This might make voluntary redundancy an attractive prospect to very experienced members of staff, and if successful in their self-selection, you could face losing a lot of knowledge and understanding about key business areas and processes. 

Voluntary redundancy comes with a financial incentive that is more favourable to employees that have been with the company for the longest period. If your long-standing employees put themselves forward and you decide to accept, you could face higher costs to finalise the redundancy than if employees with less time with the company put themselves forward. 

When employees put themselves forward for voluntary redundancy, it’s up to you, the employer, to accept or reject the offer. You may be forced to reject offers if you have more volunteers than you have the financial capacity to offer redundancy for. 

This could result in those people who are not accepted feeling negatively about the company and becoming demotivated as a result. You also run the risk of having an uncertain working relationship going forward, wondering why they wanted to leave in the first place, and whether they truly want to stay after being rejected for voluntary redundancy. 

Incentivising The Decision 

Employees have the right to certain things when it comes to redundancy relating to pay, notice period consultation and time off to find a new job. 

View  gov.uk  for the rules around these things, and what you must provide. It’s not uncommon however for employers to want to offer more than the statutory requirements to their employees when it comes to voluntary redundancies. 

Yohttps://www.gov.uk/redundancy-your-rightsu may find that by creating an appealing redundancy package, you get a better uptake for voluntary redundancy which can prevent the need for compulsory redundancy.

Things to consider include:

• Extra redundancy pay above and beyond the statutory amount
• Waiving the need for the employee to work their notice period 

Pitfalls To Be Aware Of 

Employers must treat employees fairly in all situations regarding their characteristics or traits. In discussions relating to voluntary redundancy, it’s especially important to be mindful of this to prevent claims of discrimination from being made.

You do not need to offer voluntary redundancy to all staff, but you must ensure that staff who aren’t offered voluntary redundancy do not feel they were stopped from volunteering due to  protected characteristics  such as gender, age, marital status, sexual orientation etc. 

Claims of discrimination can also be made if employees feel forced into redundancy when employers have refused voluntary offers from other members of staff. 

Related Questions 

Is voluntary redundancy the same as dismissal .

Although different processes apply between redundancy and dismissal, any employee who has volunteered for redundancy has effectively agreed to be dismissed. 

If an employee had handed in their notice voluntarily they would have resigned, but because they are being dismissed, employees must tread very carefully to ensure claims of unfair dismissal aren’t brought against them, even if the employee voluntarily put themselves forward for redundancy. 

Examples of this might include if there was never a genuine reason for redundancy in the first place. 

Conversations between employees and employers regarding redundancy, including offering voluntary redundancy can be a minefield to navigate. We hope that this article has given you some clear points of reference to follow when tackling this topic at your place of work. 

• Voluntary redundancy is a way that employers can reduce the size of their workforce by asking employees to volunteer to terminate their contract in return for a financial incentive. This is in contrast to standard redundancy proceedings where employers select employees at risk of redundancy them
• Redundancy should only be considered as a last resort and when there is a genuine business need to reduce headcount and if no other viable business options exist.
• After notifying staff that redundancies are being made, employees have the opportunity to put themselves forward for voluntary redundancy but you, the employer, do not have to accept their self-selection.
• After accepting a voluntary redundancy offer from employees, employers must then treat the employee as if they are  being made redundant  and ensure all correct procedures relating to notice periods, consultancy periods and time off to find work are adhered to. 

Need Support? 

Neathouse Partners can assist employers with all aspects of employment and HR law including providing  advice and support  regarding voluntary redundancy. 

If you would like advice on managing redundancy discussions with employees and the process to follow, our expert team is here to help. 

Neathouse Partners Newsletter

Join 7,494 business owners and HR practitioners keeping ‘in the know’ with the latest HR,  Employment Law & Health and Safety developments.

• Sent every Friday
• Features the latest HR, Employment Law and Health & Safety news
• Usually under 5-minutes read time
• Free, forever

About The Author.

Green Book and Burgundy Book regulations: a guide for HR professionals

In this article, we’ll take a look at the differences between the Burgundy Book and Green Book rules and regulations, and how these can affect things like maternity leave and sick pay for teachers in employment.

Promoting a healthy diet in the workplace: a guide for employers

Ensuring you eat a balanced diet is not just important for supporting good health – it can also be a game-changer for performance in the workplace. Prioritising nutritious, healthy foods can give the body and

About Neathouse Partners

Neathouse Partners is a dedicated group of seasoned Employment Lawyers, HR Consultants, and Health and Safety specialists, offering businesses comprehensive outsourced HR services, expert employment law advice, and reliable health & safety solutions.

With a focus on client success, our skilled team delivers tailored support to help businesses navigate complex workplace challenges and maintain compliance with relevant regulations.

Discover our solutions

Unlock your business potential.

Get a Quote for Our Expert HR, Employment Law, and Health & Safety Services

HR | Employment Law | Health & Safety

Human resources.

• HR Services
• Outsourced HR
• Small Business HR
• HR Consultancy
• HR Management Software
• On-Site Support

EMPLOYMENT LAW

• Employment Law Advice
• Fixed Fee Employment Law
• Tribunal Representation
• Redundancy Advice
• TUPE Advice
• Employment Contracts
• Staff Handbook
• Directors' Services Agreement

HEALTH & SAFETY

• Health & Safety Services
• Documentation
• Risk Assessments
• Fire Risk Assessments
• Method Statements
• Accident Investigation
• CDM Regulations

COMMERCIAL LAW

• Terms & Conditions
• Commercial Agreements
• Business Partnership
• Confidentiality Agreements
• Contractor Agreements
• Franchisor Agreements
• Sales And Marketing
• Shareholder Agreements
• Supply And Distribution
• Sale Of Business

EMPLOYEE INCENTIVES

• Employee Incentives
• EMI Share Schemes
• Employee Ownership Trusts
• Flowering Shares
• Growth Shares
• Hurdle Shares
• Phantom Share Schemes
• Non Tax-Advantaged Share Plans

OTHER SERVICES

• Data Protection Health Check
• Subject Access Request (SAR) Support

POPULAR POSTS

• An Employee Fails To Return Company Property
• Dismissing An Employee
• Ending A Fixed Term Contract
• Final Written Warning

90 Paul Street, Shoreditch, London, EC2A 4NE 020 3962 1497

15 Calton Road, Edinburgh, Scotland, EH8 8DL 0131 510 1736

Have a question?

We don't bite.

CURRENTLY ACCEPTING FOLLOWERS

• Privacy Policy
• Regulatory Information

Neathouse Partners Ltd. Registered Office: Regus House, Heronsway, Chester Business Park, Chester, United Kingdom, CH4 9QR. Registered in England and Wales No: 08596836. Neathouse Partners Ltd is authorised and regulated by the Financial Conduct Authority as an Appointed Representative authorisation number 969117 under the principal LFI Limited authorisation number 307153. The contents on this website are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any information given on this website.

Redundancy letter templates & examples

The decision to make an employee redundant can be a difficult and sensitive one for employers and drafting a redundancy letter can be a daunting task, especially if you haven’t written one before. Download our free redundancy letter templates which can be customised to suit your business needs.

Download the free templates now

Making redundancies is never a pleasant experience, but it’s sometimes unavoidable and employers need to ensure they navigate the process with sensitivity and professionalism, and adhere to the law, or they may face employment tribunals and unfair dismissal claims.

A redundancy letter is a written communication from an employer to an employee that informs them of their job loss due to a reduction in the workforce. To help employers manage this process and ensure they provide employees with clear and concise information, we have compiled a selection of adaptable redundancy letter templates for the various stages of the redundancy procedure .

When would you need to write a redundancy letter?

Employers may have to write redundancy letters in the following circumstances: 

Economic downturns  

During a time of economic decline or recession, businesses may experience a reduction in revenue, leading to reduced demand for their products or services. In such circumstances, businesses may look to reduce their workforce to cut costs. 

Restructuring  

Companies may need to restructure their operations, departments, or teams due to changes in the market, mergers and acquisitions, or changes in leadership, which could lead to redundancies. 

Technological advancements  

With advancements in technology, businesses may require less manual labour, leading to a reduction in the workforce. Employers may have to make employees redundant where their jobs have been automated or outsourced. 

What is the difference between voluntary and compulsory redundancy?  

Voluntary redundancy is when an employer offers an employee the option to leave their job in exchange for a financial package, which could include a lump sum payment, extended notice period, and other benefits. Employees who accept voluntary redundancy do so voluntarily, and their decision is not influenced by their employer.

In contrast, compulsory redundancy is when an employer selects an employee to leave their job due to a reduction in the workforce, restructuring, or other reasons. Employees who are made redundant involuntarily do not have a choice in the matter and may be entitled to statutory redundancy pay and other benefits.

What are the stages of a redundancy process?   

The redundancy process can be broken down into stages and logical steps that employers can follow. The stages are: preparation, selection, individual consultations, notice of redundancy, appeals (if applicable), and termination.

Stage one: Preparation

During the preparation stage, you will assess whether redundancy is the only option and is completely necessary before beginning the process. If you are concerned with your employee’s performance or behaviour, then you should go down the disciplinary route instead.

Redundancy is a type of dismissal where the employee’s job is no longer required. Ensure that you have covered all alternative options and if you have concluded that redundancy is essential, establish a time frame and prepare the relevant documentation.

Stage two: Selection

At this stage, you will be selecting the people who are under consideration for redundancy. You’ll need to determine the criteria for selecting those employees which should be objective and fair across the workforce.

Additionally, now is the time to inform employees of the upcoming redundancies. This should also include those who are not under consideration. You should explain that there is the risk of redundancy, the reason why it’s necessary, roughly how many redundancies you're considering, and what will happen next.

Stage three: Individual consultations

The consultations stage is a hugely important part of the redundancy process, and it’s essential that employers look at this as an open discussion with the employee, rather than using this time to just inform them of their potential redundancy.

You should explain why they have been selected and discuss alternative employment in the company. Employees will have the chance to make suggestions as to how the business can retain them and these suggestions should be considered fairly, or the employer may face unfair dismissal claims.

Note: there are legal time frames regarding consultations, so make sure you adhere to these.

Stage four: Notice of redundancy

Once you have finished consulting with everyone and made your decision, you should meet with each at-risk employee to discuss the outcome. Ideally, do this face to face, but if this is not possible, organise a phone call.

Those who have been selected for redundancy should also receive confirmation in writing, by letter or email. We have included a redundancy notice letter template for your ease.

Stage five: Appeals

If an employee feels they have been unfairly chosen for redundancy or if they think there were discriminatory issues in the process, it is essential to offer them the opportunity to appeal within a reasonable time frame after they have received their redundancy notice. This could be, for instance, five days. The employee should submit their reasons for appeal in writing. Once you receive an appeal, you should arrange a meeting with the employee as soon as possible.

If it becomes clear that the employee was selected unfairly but you still need to make the role redundant, you must manage the situation with great care. This could mean ending the employment of another employee who was informed their job was secure. It is important to communicate clearly and openly with your staff, rectify any issues with the process, and ensure a fair selection procedure is carried out. If serious problems are identified, you may need to repeat the entire redundancy process.

If you decide to reject the appeal, the employee's redundancy dismissal, notice, and pay will continue as before.

Stage six: Termination

This is the final stage of the redundancy process where the employment contract is terminated. During this stage, you should be supportive and give your employee reasonable time to find another job while they work their notice period.

All employees who have been with the company for more than two years qualify for a statutory redundancy payment. Provide the employees with a written record of how the statutory redundancy payment has been calculated and what they will receive.

What should be included in a redundancy letter?

The redundancy letter to the employee should clearly state the reasons for the employment termination and the terms of their departure. Here are some key pieces of information that should be included in a redundancy letter:

Reason for redundancy: The letter should clearly state the reasons for the redundancy, such as economic downturn, restructuring, or technological advancements.

Selection criteria: Employers should explain the selection criteria used to determine which employees are being made redundant. This could include factors such as length of service, skills and qualifications, and job performance.

Notice period: Employers should provide details of the employee's notice period, including the start and end dates, as well as any entitlements to pay in lieu of notice.

Redundancy pay: The letter should provide information on the employee's entitlement to statutory redundancy pay, as well as any additional redundancy pay provided by the employer.

Benefits: Employers should explain what happens to the employee's benefits, such as healthcare, pension, and life insurance, after they leave.

Support: Employers should offer support to the employee during this difficult time, including assistance with finding new employment opportunities and access to training programmes.

To help you navigate this challenging process, we have put together a selection of redundancy letter templates that can be used at various stages throughout the process. These include:

Redundancy consultation letter

Redundancy consultation outcome letter

Invitation to redundancy outcome meeting letter

Notice of redundancy letter

You may also be interested in...

How to effectively manage staff redundancies

Making employees redundant is difficult, and if not done properly, can impact the reputation of a business. So what can employees do to manage staff redundancies?

Induction checklist for new staff (downloadable template)

Looking for an effective way to track the induction process of new starters? Use our induction checklist to support employees and help them settle into their role.

Download our editable performance review template

Performance reviews are an important element of employee development but are often seen as a tick-box exercise with little value. Our downloadable template will help you review the performance of your team members more efficiently and effectively.

Find a Reed office

Our national coverage allows us to offer a recruitment service tailored to your needs, with accurate local market intelligence on salaries, competitors and the best professionals who can help your business thrive.

• 02074940118
• [email protected]

Offering Voluntary Redundancy

Anne morris.

• 19 November 2023

IN THIS SECTION

Voluntary redundancy is an option for employers to consider as an alternative to making compulsory redundancies.

For employers, it is important to understand the legal and personnel issues of offering voluntary redundancy to avoid complaints and potential legal claims.

In this guide, we explain what voluntary redundancy means and how it works in practice, as well as the obligations on the employer and the rights and entitlements of employees through this process.

What is voluntary redundancy?

Voluntary redundancy refers to a situation where job roles are no longer needed — perhaps because your organisation has recently undergone a restructure, you have invested in new technology making a number of jobs obsolete or you simply need to reduce your payroll liabilities — but where employees are given the choice to accept being made redundant. This is therefore the process of an employee opting to take redundancy, where their employment will be terminated, typically in exchange for some kind of financial payout.

Making redundancies can be difficult for employers, and daunting for employees, where providing staff with the option to take redundancy can help to ease this process. This can be empowering for employees, giving them the means of controlling their future. By people voluntarily exiting the business, it can also help to save the jobs of those reluctant to go.

Difference between voluntary and compulsory redundancy

Compulsory redundancy refers to a redundancy situation in which you, as the employer, make the decision to terminate the employment of those selected for redundancy because you no longer need anyone to do the job role that they fill. Again, this might be because your business is changing what it does or doing things in a different way.

You must demonstrate that the employee’s job role will no longer exist for a redundancy to be genuine but, provided you can prove a genuine redundancy situation, a redundancy can be either compulsory or voluntary. A compulsory redundancy is where you decide who to make redundant out of the redundancy pool based on certain criteria, while a voluntary redundancy is where individuals from that pool are invited to volunteer for redundancy, although there must still be a fair and objective selection process in place.

Employer obligations when offering voluntary redundancy

Voluntary redundancy must follow the same process as any redundancy scenario. This means, having identified the pool of employees from which redundancies will be made, you will need to determine a fair selection criteria. The fact that an employee puts themselves forward for redundancy does not necessarily mean that they will be automatically selected, where the selection process that you use to invite people must still be fair and objective.

Even in the context of voluntary redundancies, it is still possible for allegations to arise of unfairness or even unlawful discrimination. When an employee accepts an offer of voluntary redundancy, they are not resigning, but agreeing to be dismissed by reason of the redundancy. The fact that a dismissal is voluntary does not automatically make that a fair or lawful dismissal and, by volunteering for redundancy, an employee does not lose the right to make a tribunal claim. For example, in the case of White v HC-One Oval Ltd [2022] EAT 56, in allowing an appeal from the tribunal’s decision to strike out an unfair dismissal claim, the Employment Appeal Tribunal (EAT) held that an employee who requests voluntary redundancy does not necessarily have no reasonable prospects of success.

Mrs White’s case was that her employer had manufactured a situation in which another employee was brought in to replace the claimant and one other as existing part-time workers, and that the process followed that led her to request redundancy was unfair. By focusing only on the decision to accept her request for redundancy, and thus finding that the background matters of which she complained were irrelevant, the tribunal had erred in law and the matter was remitted back by the EAT to proceed to a full merits hearing.

To ensure that voluntary redundancy is not in any way unfair, in addition to adopting a fair and objective selection criteria, you must also consult with all affected employees, informing them of the reason for the redundancies and of their redundancy rights.

Employee voluntary redundancy rights

Employees have the same legal rights, regardless of whether they volunteer for redundancy or are selected by their employer without choice. These rights can be broken down into three main categories: redundancy pay, redundancy notice and a reasonable time off work.

Redundancy pay

If an employee has worked continuously for your business for at least 2 years, they will be entitled to statutory redundancy pay based on the employee’s age and length of employment with you, counted back from the date of the dismissal. As such, a qualifying employee will be entitled to pay based on the following formula:

• half a weeks pay for each full year of employment aged 18-22
• one weeks pay for each full year of employment aged 22-40
• 1.5 weeks pay for each full year of employment aged 41 or older

The length of service in the context of calculating redundancy pay is capped at 20 years, with weekly pay capped at £643. As such, the maximum amount of statutory redundancy pay is £19,290. As an absolute minimum, you must offer statutory redundancy pay for voluntary redundancies, together with a written explanation of how you calculated this pay.

You can also offer a much more attractive redundancy pay package, over and above the statutory minimum, including the offer of redundancy payments to employees who have not yet accrued the 2-year qualifying period, to increase the uptake of volunteers.

Redundancy notice period

As with any dismissal, an employee will be entitled to a statutory minimum period of notice based on the length of time that they have worked for you, calculated as:

• at least a weeks notice for employment of between 1 month and up to 2 years
• a weeks notice for every year employed between 2 and 12 years
• 12 weeks notice for 12 or more years.

An employee may have an enhanced contractual right to longer notice. The contract may also make provision for pay in lieu of notice (PILON), where you can add any PILON to an employee’s voluntary redundancy pay, rather than requiring them to work their notice.

Time off work

Where an employee has been continuously employed by you for at least 2 years by the date that their notice period ends, they will also be entitled to a reasonable amount of time off work, either to look for another job or to arrange training to help them find another job.

The length of time that an employee can take off work will depend on their circumstances although, regardless of how much time is taken, the most you have to pay the employee is 40% of one week’s pay. This is the total amount and not the amount per week, for example, if an employee works 5 days a week and they take 4 days off in total during their notice period, you will only be legally obliged to pay them for the first 2 days. However, when it comes to voluntary redundancy, you may again want to offer a more lucrative arrangement.

Should you offer voluntary redundancy?

Even though employees still have the same rights and entitlements when it comes to either voluntary or compulsory redundancy, including a minimum amount of redundancy pay and the right to take time off work for qualifying employees, together with a minimum notice period, there are various advantages for employers when it comes to voluntary redundancy.

By giving employees the chance to choose whether they stay or go, this can help to reduce any allegations of unfairness because the decision is voluntary. Some employees may prefer to take redundancy for all sorts of reasons, including relishing the opportunity to change jobs, using the payout to start their own business or capitalising on already wanting to leave. The option of voluntary redundancy can also often help to safeguard staff who would prefer not to go, having only those who are willing to do so leave the business. In many cases, this can mean that employers are freeing themselves of staff who were already thinking of leaving or who may have been dissatisfied in their role for some time.

However, voluntary redundancy also comes with its own set of disadvantages. For example, you may be at risk of losing more staff than you would like, even if you have the choice. As an employer, you are not legally bound to accept a request for redundancy, even in circumstances where the voluntary redundancy process has been initiated by you. However, by forcing someone to stay, this may have an adverse impact on employee engagement and morale, especially when you know that they would potentially be open to leaving.

How to manage the voluntary redundancy process

When looking to offer voluntary redundancy, first and foremost, you must let employees know that just because they have volunteered, this does not mean that they will automatically be selected. For example, if an employee who volunteers for redundancy has a business-critical role, you may decide to retain that person. It is also important to decide on a fair selection criteria, where it is often wise to prepare a scoring framework to help you choose who to accept in the event that multiple people volunteer for redundancy.

When putting a framework in place to identify who would be suitable for voluntary redundancy, consideration should be given to the following key questions:

• How will it impact the business as a whole if a certain employee leaves?
• Will there be sufficient numbers to do this job, or in this department, if they leave?
• Can someone more junior or senior take on this role’s responsibilities if they go?
• Would it be better to keep this person, now they have made it clear that they would be willing to accept voluntary redundancy, or to accept their desire to be made redundant?
• Can the business afford to cover the cost of their redundancy, where the redundancy pay for long-serving employees can equate to sizeable sums of money.

However, it is important to remember that in a genuine redundancy situation, it is a person’s role that is made redundant and not the person themselves. As in the case of White v HC-One Oval Ltd, you cannot make someone redundant, even if they volunteer to leave, and then immediately employ someone else to do the same or even similar role.

Voluntary redundancy and settlement agreements

When making voluntary redundancies, entering into a settlement agreement can be a sensible way forward. This is a legally binding document between an employer and employee designed to settle any claims that arise out of the employment relationship. In the context of a voluntary redundancy scenario, a settlement agreement can be used to formally terminate employment on mutually agreed terms, with the employee waiving their right to bring any tribunal claim against an employer in return for some form of payment.

There are various statutory requirements that must be satisfied for an agreement to be binding, including the employee receiving independent legal advice, which the employer will typically fund, but this can offer the best form of protection from any comeback.

Alternatives to compulsory redundancy

In addition to voluntary redundancy, employers should consider alternative options before making compulsory redundancies, such as:

• filling vacancies elsewhere in the business with existing employees in circumstances where suitable alternative employment is available
• offering employees across the workforce incentives to retire early
• seeking applications from staff to work flexibly, such as part-time hours or job shares
• reducing or banning overtime, and restricting new recruitment, for the foreseeable future
• laying off self-employed contractors or freelancers from the business for the time being.

It can also be worth securing the advice of a redundancy specialist who can explore the different options available to you to help protect both your business and your workforce.

Need assistance?

The redundancy process is high risk and requires careful management to avoid complaints and potential legal claims. Poorly managed redundancies can also result in workforce issues such as demotivation and loss of talent.  To avoid issues when offering voluntary redundancy, contact us for specialist employment law advice.

Voluntary redundancy FAQs

What are the rules for voluntary redundancy.

When asking employees to volunteer for redundancy, there are still certain rules that must be followed, including adopting a fair and objective selection process. Employees may also be entitled to a minimum amount of redundancy pay and notice.

How much will I get if I take voluntary redundancy?

The amount an employee will be entitled to receive for accepting voluntary redundancy will depend on the employer’s offer or the terms of any negotiation, although employee’s with 2 years’ service must receive the statutory minimum redundancy pay.

Is voluntary redundancy a good idea?

Voluntary redundancy can be a sensible option for both employers and employees, where giving staff the chance to choose to leave, often in return for an attractive redundancy package, can help to avoid compulsory redundancies.

How do you explain voluntary redundancy?

Voluntary redundancy describes the process in which an employee voluntarily opts to take redundancy, where their employment will be terminated for this reason, typically in exchange for some kind of redundancy payout.

Last updated: 19 November 2023

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator , and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

• Anne Morris https://www.davidsonmorris.com/author/anne/ Family Visa UK: Explore Ways to Apply
• Anne Morris https://www.davidsonmorris.com/author/anne/ Ukraine Refugee Aid in UK
• Anne Morris https://www.davidsonmorris.com/author/anne/ Understanding British Values
• Anne Morris https://www.davidsonmorris.com/author/anne/ Family Reunion and Immigration

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

Contact DavidsonMorris

Sign up to our award winning newsletters, find us on:.

Trending Services

DavidsonMorris Ltd t/a DavidsonMorris Solicitors is a company Registered in England & Wales No. 6183275

Regulated by the Solicitors Regulation Authority No. 542691

Registered Office: Level 30, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AB

© Copyright 2024

Terms of Use | Privacy Policy | Cookies Notice

Website design by Prof Services Limited . 

• End of contract
• Dismissal and redundancy
• Voluntary redundancy

What is voluntary redundancy?

When an employee has a say in their redundancy, the process is much smoother.

First published on Thursday, Jun 04, 2020

Last updated on Monday, Aug 01, 2022

No business enjoys bringing its workforce bad news. Redundancy is just that.

But there’s a way to make it a little less upsetting. You can offer financial incentives for an employee to resign with, making the process more amicable on both sides.  

Read our guide and get yourself up to speed on this more agreeable alternative.

It’s a chance to offer your staff a fair package, and to try to end on good terms. If an employee agrees, it means you spend less time making compulsory redundancies.

But it’s important to remember there’s a big difference between compulsory and voluntary redundancy. The former has a selection process, which then determines the roles and employees set to face redundancy.

The latter is more likely to send your ex-staff away with a good feeling than compulsory redundancy would.

If you wrote in your contractual terms you'll seek volunteers in a redundancy situation before any compulsory redundancies, you must stick to this obligation.

Make sure you have a voluntary redundancy process in place so you can follow it.

You can read our guide to find out a bit more on compulsory redundancy .

Your employees’ voluntary redundancy rights

It’s important to understand employment law and voluntary redundancy. As if you don’t, you may breach some of the rights of your workforce.

If one of your staff decides to volunteer for redundancy, they can get statutory redundancy pay as long as they have at least two years' continuous service with you.

Is there a typical package you to offer your staff?

When you build a voluntary redundancy pay package, remember your aim is for your staff to agree to what you're going to offer them.

There's more chance of an ex-employee having good things to say about your company if they've left on good terms.

Packages vary from business to business. You could offer a week's pay for each year of service. Or, you might offer something more lucrative—for instance, six months' pay. Or, even a full year's pay.

When working out what sort of package to offer, you should think about:

• The length of your employee's notice period.
• The time it could take them to find a new job.
• Any benefits their contract entitles them to.

Decide the maximum that you'll offer an employee, and keep this amount in reserve. Why?

Well, if you're willing to offer up to 12 months' voluntary redundancy pay, perhaps begin by offering six months'.

Some staff will try to negotiate a better package, and since voluntary redundancy is voluntary, if you refuse to up your offer, they have the right to turn it down.

In this case, if they turn it down, you can offer more of the amount you're already happy to offer.

Redundancy is a delicate matter. For some employees, when you choose them for redundancy, you'll hurt their pride and their feelings.

The reasons why you need to cut your budget and your personnel won't be important to them. You might have to deal with one or two troublesome employees who refuse your voluntary redundancy offers simply to spite you.

Remember, there’s a statutory minimum redundancy limit you have to keep in mind. You can use the government’s official calculator to stick to it .

Here are some important voluntary redundancy rules

You should keep written records of your voluntary redundancy process for each employee.

Written proof you have a fair procedure will work in your favour if your employee tries to make a claim against you.

Write your employee a voluntary redundancy letter explaining what happens when they take voluntary redundancy.

Make clear you're offering a voluntary redundancy and clarify the amount you're offering. In the letter, also include:

• Information regarding the employee's notice period. Will they need to work it? Or, will you pay them in lieu of notice?
• Will they need to use their remaining holidays, if they have any? Or, will you pay them in lieu of these?
• Are they eligible for any bonus or commission pay?

You could also take this moment to apologise for the unfortunate nature of the situation.

Sometimes you'll have to fall back on compulsory redundancy

Voluntary redundancy rejections will mean you'll have to make compulsory redundancies. Make sure that you use fair criteria when choosing whom you let go. Fair criteria include:

• Disciplinary record.
• Absence record.
• Lateness record.
• Performance.
• Qualifications.
• Skill level.

When reviewing an employee's absence and lateness, you should make sure that you check whether any instances of absence or lateness were due to a disability or any other protected characteristic.

Here are some good reasons for voluntary redundancy

So, why should you choose this option over compulsory? Let’s take a look at the benefits of allowing employees to voluntarily resign:

• Cost saving : By reducing your headcount you can save funds, a useful tactic for businesses with financial issues.
• Avoiding compulsory redundancies : You can make an employee’s departure more amicable, which can have a positive impact on future relations.
• Positive for workforce morale : If you take a more progressive approach to redundancies then it can place your workforce at considerable ease. It’s a negotiable option that allows them to leave your business with dignity.
• Reduce the risk of discrimination claims : Voluntary redundancy is a good business practice as it provides the employee with choice. And when it comes to a redundancy, it helps to ease the stress of the situation and create a situation that offers them some advantages.

Need to make some redundancies?

Dismissals and redundancies are stressful for you and your employees , so get in touch with us if you’re struggling. We can provide expert advice on how to end the matter amicably.

Share this article

Have a question.

Ask away, we’ve got lightning fast answers for UK business owners and employers powered by qualified experts.

More on statutory redundancy guide

As a business owner, you may be left with the tough decision of making some employees redundant. For all employers, this is one of the hardest ...

Alternatives to Redundancy

No company wants to lose its hard-found talent. Losing employees can cripple a team, slow down workflows, and even permanently damage a company. ...

Job at Risk of Redundancy Letter Template

Redundancies are unfortunately common during turbulent times. They serve as a method of keeping a business open and running whilst undergoing ...

Statutory Redundancy Pay

Employers will always take pains when considering redundancies. Not only do they lose valuable talent, but any growth or expansion must stop. Despite ...

Employee dismissal and redundancy rights

When it comes to employee dismissal and redundancy rights, you need to get them right — or you could face a complaint ending in a costly tribunal ...

Compulsory redundancy guide

Making redundancies is always a difficult process for businesses. But depending on circumstances, it might be the only option you have. This is, ...

Redundancy on maternity leave

When considering redundancies, employers must choose employees to make redundant carefully. They must use a fair process, one that accounts for ...

Disciplinary procedures

You work hard to make sure all your employees are happy and productive at work. But sometimes, an employees behaviour can throw a wrench in the whole ...

Alternatives to employee dismissal

Dismissing employees should always be a last resort. Firstly, because it’s much better to avoid the staff turnover and employee relations costs that ...

Voluntary redundancy application form template

This form enables employees to formally submit their voluntary redundancy applications, capturing necessary details and declarations.

What is a Voluntary redundancy application form?

A voluntary redundancy application is a request made by an employee to their employer to terminate their employment contract voluntarily. In some cases, companies may offer voluntary redundancy schemes to employees as a way to reduce the size of their workforce without resorting to layoffs or forced redundancies.

By accepting a voluntary redundancy, an employee typically receives a compensation package from their employer, which can include severance pay, notice pay, and other benefits. In some cases, the employer may also offer additional support to help the employee find a new job or career path.

It's important to note that applying for voluntary redundancy is entirely optional, and employees should carefully consider the implications before making a decision. Depending on the individual circumstances, accepting a voluntary redundancy package may have financial, career, and personal consequences.

What legislation or best practices underpin this / should I be aware of?

Employment Rights Act 1996: Provides the legal framework for employee rights, including provisions for voluntary redundancy and consultation processes.

Redundancy Payments Act 1965: Establishes the right to receive statutory redundancy payments for eligible employees, including those who opt for voluntary redundancy.

The Trade Union and Labour Relations (Consolidation) Act 1992: Outlines the rights and obligations of employers and employees regarding redundancy consultation with employee representatives or trade unions, which may be relevant when implementing voluntary redundancy programs.

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE): Covers situations where a business or undertaking is transferred from one employer to another, ensuring that employees' rights are protected, including in cases of voluntary redundancy.

Equality Act 2010: Prohibits discrimination, including in voluntary redundancy processes, based on protected characteristics such as age, disability, gender, race, religion, or sexual orientation.

Employment Equality (Age) Regulations 2006: Provides specific protection against age discrimination in relation to voluntary redundancy.

Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000: Ensures that part-time workers are not treated less favorably in voluntary redundancy processes compared to their full-time counterparts.

ACAS Code of Practice on Handling Redundancy: Although not legally binding, this code provides guidance on fair and effective redundancy processes, which can be useful when implementing voluntary redundancy programs.

Voluntary redundancy application

Due to [ organisational/operational/insert other ] reasons, [ Company ] is currently contemplating redundancies. As a result, we are asking employees to consider whether or not they would like to volunteer for redundancy.

If you wish to apply for voluntary redundancy, please complete the form below in full and return it to [ name ] by [ date ].

[ Employees who volunteer, and are accepted, for redundancy, will be paid an ex gratia payment equivalent to £[ amount ] on termination of employment. ]

I wish to put my name forward for voluntary redundancy. I understand that [ Company ] is not obliged to accept my application for voluntary redundancy.

If your application for voluntary redundancy is accepted, you will be notified and a meeting will be set up to discuss the timing and circumstances of your redundancy and to discuss your entitlement to notice and redundancy pay on termination.  

Version: [ 1.0 ]

Issue date: [ date ]

What communication / process sequence is this part of?

Why choose our Voluntary redundancy application form template ?

• It's easily editable and implementable, saving you time and money
• It's designed by CIPD accedited Chartered HR practitioners with years of practical experience in this area
• You will maintain compliance with ACAS guidelines, legislation, and industry best practices
• 12 months of unrestricted access without any additional costs (any update in that period is free to you)
• A 25% discount on all library, toolkit, and template purchases/renewals

• 601 HR docs & templates.
• 500+ supporting resources.
• Be prepared for any HR challenge.
• Voluntary redundancy application form template included.

Termination library

• 106 Termination templates.

Redundancy templates toolkit

Voluntary Redundancy Acceptance Letter

Dear [Employer],

I am writing to formally accept the offer of voluntary redundancy that you have extended to me. While it was a difficult decision to make, I believe that this opportunity will allow me to pursue other interests and achieve personal goals that I have been putting on hold.

I want to take this opportunity to thank you for the support and opportunities that you have provided me during my time here. I have enjoyed working with such a talented and dedicated team, and I will miss the camaraderie and sense of purpose that we have shared.

I am committed to making this transition as smooth as possible and will work with you to ensure that all of my responsibilities are transferred appropriately. Please let me know if there is anything else that I can do to help facilitate the process.

Once again, thank you for the opportunities that you have provided me, and I wish you and the company all the best in the future.

[Your Name]

• Sample Voluntary Redundancy Acceptance Letter

Peninsula Group , HR and Health & Safety Experts

Jan 22nd 2021 (Last updated Apr 15th 2024 )

Get your free download

Voluntary redundancy

During the voluntary redundancy process, your business may need to send out a voluntary redundancy acceptance letter.

This will confirm to an employee you accept their request for redundancy. 

However, it's important you write this letter in the correct way. There are important areas of employment law to get right. 

You can download this template acceptance letter and use it as a guide for your business. Please fill out download form to gain access to the sample. 

Alternatively, for any redundancy advice, reach out to us directly. 

Peninsula provides total support on any HR or Health & Safety issue you have. From unlimited advice to our full documentation and risk assessment services , we'll ensure compliance at all times, contact us today.

Got a question? Check whether we’ve already answered it for you…

What is redundancy?

Redundancy is when an employer ends someone's employment because they no longer need them or can no longer afford to keep them.

What are fair reasons for redundancy?

There's no longer a need for the worker, there are new systems in place, thier job no no longer exists, or the business transfers to a new owner.

Do you have to provide employees with redundancy pay?

Yes, if you're making someone redundant you must provide them with redundancy pay. This is a legal requirement so it's important you do so.

How can Peninsula help with redundancy?

Peninsula can offer expert and quality advice on redundancy, ensuring you act legally and avoid claims being raised against you.

Can you be taken to an employment tribunal over redundancy?

Yes, if you fail to follow a fair process or don't provide your employees with redundancy pay them may choose to raise a claim against you.

Related free downloads

At risk of redundancy letter template.

Free Download

During financially challenging times, companies may have no other option than to consider redundancies.

The Employers Guide to Unfair Dismissal

This employment law guide explores the basics of unfair dismissal and offers guidance on how to avoid common pitfalls.

Business Case for Redundancy

Making redundancies is a big decision. And one that you need to think carefully about.

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and Health & Safety questions

Tell us a few details and we’ll send your free download straight to your inbox

View our privacy notice .

Book my free advice call

Tell us your details and availability - one of our professionals will get back to you.

Callbacks can be as quick as within 8 minutes

Please select a time

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.

Redundancy letter templates

Templates for employers to tell their employees that they're:

at risk of redundancy

invited to a consultation meeting

being made redundant

Free to download and use. 

Find out more about managing redundancies

If you need the letters in a different format, or you cannot download them, email  [email protected]

Informing employees they're at risk

A template for telling an employee they're at risk of being made redundant and explaining the consultation process. 

Letter informing employee they're at risk of redundancy (Word version, 27KB)

Letter informing employee they're at risk of redundancy (OpenDocument Text format, 10KB)

Inviting employees to a consultation meeting

A template for inviting an employee to a consultation meeting and explaining what will be discussed.

Letter inviting employee to a consultation meeting (Word version, 25KB)

Letter inviting employee to a consultation meeting (OpenDocument Text format, 8KB)

Telling an employee they've been selected for redundancy

A template for telling an employee they've been selected for redundancy and giving notice to end their employment.

Letter confirming employee has been selected for redundancy (Word version, 25KB)

Letter confirming employee has been selected for redundancy (OpenDocument Text format, 8KB)

If you like, you can tell us more about what was useful on this page. We cannot reply – so do not include any personal details, for example your email address or phone number. If you have any questions about your individual circumstances, you can contact the Acas helpline .

Voluntary redundancy application rejected letter template

Navigate to... The purpose of this letter 🔒 Legislation / best practice met by it 🔒 The letter template The process sequence it appears in

If you wish to reject an application for voluntary redundancy, send this model letter to the employee to confirm the outcome.

What is a Voluntary redundancy application rejected letter?

A voluntary redundancy application rejected letter is necessary for several reasons.

Firstly, it confirms to the employee that their application for voluntary redundancy has been reviewed and that a decision has been made. This provides them with clarity and closure on the matter.

Secondly, it communicates to the employee that their position is considered essential to the continued operation of the business, which can be a morale booster. It can also help to retain valuable employees who may have been considering leaving the company.

Finally, it shows that the company has a fair and transparent process for reviewing voluntary redundancy applications. This can help to build trust and respect among employees, even if their application has been rejected.

Overall, a voluntary redundancy application rejected letter is a professional way to communicate with employees and provide them with the information they need to make informed decisions about their future with the company.

What legislation or best practices underpin this template / should I be aware of?

Employment Rights Act 1996: This Act contains provisions related to redundancy, including consultation requirements, selection criteria, and entitlements for employees facing redundancy.

Trade Union and Labour Relations (Consolidation) Act 1992: This Act outlines the obligations of employers regarding collective redundancies and consultation with trade union representatives or employee representatives.

Equality Act 2010: This Act prohibits discrimination based on protected characteristics, such as age, gender, race, disability, etc., during the redundancy process, including the handling of voluntary redundancy applications.

Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002: These regulations protect fixed-term employees from less favorable treatment during the redundancy process.

Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000: These regulations ensure that part-time workers are not treated less favorably during the redundancy process.

Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE): In cases of business transfers or outsourcing, TUPE may apply, protecting the rights of employees regarding redundancy.

To view this you will need to make a purchase .

Voluntary redundancy application rejected [Delete this line]

[ Company name ]

[ Sender address ]

[ Recipient name ]

[ Recipient address ]

Dear [ Recipient first name ],

Re: Your application for voluntary redundancy

Following our letter to you of [ date ] in which we invited employees to apply for voluntary redundancy, we have had the opportunity to review all the applications for voluntary redundancy that were submitted and are now in a position to communicate our decision regarding your application.

I regret to inform you that [ Company ] has decided to reject your application for voluntary redundancy.

As you know, [ Company ] was unable to guarantee that any individual employee who applied for voluntary redundancy would be accepted and the decision as to whom (and how many) to accept had to be made taking into account a number of factors. Such factors included our need to retain certain types of knowledge and skills that are essential for us to meet our future business aims and the need to retain a balance of people with different skills and talents.

I do hope that you will understand that, based on these needs, [ Company ] very much wants to retain your services and that is why we are unable to accept your application for voluntary redundancy

We value the contributions you have made to the company and want to keep you as a valuable member of our team. We understand that this may not be the outcome you were hoping for, but we hope you will continue to work with us as we move forward.

If you have any questions or concerns, please do not hesitate to contact us. We appreciate your understanding in this matter.

Yours [ faithfully | sincerely ],

[ Sender name ]

[ Sender job title ]

[ Sender telephone ] [ Sender email ]

What communication / process sequence is this part of?

Why buy our Voluntary redundancy application rejected letter template ?

• It's easily editable and implementable, saving you time and money
• It's designed by CIPD accedited Chartered HR practitioners with operational experience in this area
• You will maintain compliance with ACAS guidelines, legislation, and industry best practices
• Email notifications for any updates made to this template or its accompanying materials
• 12 months of unrestricted access without any additional costs (any update in that period is free to you)
• A 25% discount on all library, toolkit, and template purchases/renewals

I have just renewed our membership for another year for HRdocbox. It's an extremely useful resource with a wide variety of documents and knowledge... ★★★★★ - Rachel Masing, ETM Group

I have been using the service now for around 6 months and it has been really useful in developing and updating polices and processes. ★★★★★ - Jamie Allan, Armstrong Craven

Excellent library of resources and templates which have made my job in my small business so much easier to manage HR for my employees... ★★★★★ - Emma Hunt

Great value and the site contains an extensive library of essential HR documents. I access the site probably once a week... ★★★★★ - Laura Alliss-Etty

HRDocBox is a great resource. It is incredibly good value, providing a large selection of HR guidance materials as well as... ★★★★★ - Emma Beauchamp

Navigating Holiday Requests - Balancing Employee Needs and Operational Demands

Before you go...

Can we tempt you with a 20% discount ? It can be used on any value order. Use at checkout.

Join thousands of businesses that have streamlined their HR processes, reduced risks, and enhanced efficiency. Don't miss out - choose our services today to enhance your HR.

The Federal Register

The daily journal of the united states government, request access.

Due to aggressive automated scraping of FederalRegister.gov and eCFR.gov, programmatic access to these sites is limited to access to our extensive developer APIs.

If you are human user receiving this message, we can add your IP address to a set of IPs that can access FederalRegister.gov & eCFR.gov; complete the CAPTCHA (bot test) below and click "Request Access". This process will be necessary for each IP address you wish to access the site from, requests are valid for approximately one quarter (three months) after which the process may need to be repeated.

An official website of the United States government.

If you want to request a wider IP range, first request access for your current IP, and then use the "Site Feedback" button found in the lower left-hand side to make the request.