Redundancies are unfortunately common during turbulent times. They serve as a method of keeping a business open and running whilst undergoing financial struggles.
No matter how necessary they may be, redundancies are never welcomed. Even the possibility of redundancies can make employees nervous and harm the morale of a workplace. Whether it’s a small team or an entire company, it’s easy for employees to fear for their jobs.
Clearing confusion and explaining the redundancy process to employees can help. As does preparing an ‘at risk of redundancy letter’.
If an employee does not receive a risk of redundancy letter when they are considered for redundancy, there are potential issues in the future. These would result if the employee who does not receive a risk of redundancy letter is made redundant.
As they hadn’t received a letter explaining why they were considered or the stages they could take to prevent redundancy, the employee can take you to an employment tribunal. The employee can argue that they were unfairly dismissed, which can come with hefty fines.
What is an at risk of redundancy letter?
A job at risk of redundancy letter is provided to employees before a redundancy letter. These letters are written letters of intent that a role is being considered for redundancy. Employees receive these letters which include relevant information. This information relates to the employee’s role and the redundancy process.
These details include:
- the consultation process
- how and where to find more information
- the redundancy process
At risk of redundancy letters signal the start of consultation meetings. These meetings are with both the employee in question and internally between those making the decision. Overview of at risk of redundancy letter
A job at risk redundancy letter features the following:
- Overall explanation: outline the reasons why redundancies are being considered.
- Role-specific explanation: outline the reason why the individual receiving the letter is being considered for redundancy.
- Process: details of the process that follows the letter. This includes the redundancy process as a whole as well as consultation.
- Other roles: details of whether there are other roles available for the employee. If they need to apply for a role, this will include information about how to apply for them.
- Date of consultation: the final date of consultation. Outline that this would reveal the results of consideration and whether the employee’s position is being made redundant or not.
When should I use an at risk of redundancy letter
The beginning of the consultation and consideration process is when you should use risk of redundancy letters.
Once redundancies are being considered, the next steps are the beginning of the consultation process.
This is when employees can contact and include their representatives in the process.
What is included in this at risk of redundancy letter
As outlined by at risk of redundancy letters by ACAS, a letter sent to an employee at risk of redundancy should include the following:
- The date you send the letter
- The name of the employee
- The reason for redundancies in the business
- The amount of redundancies the business needs to make
- The roles and teams affected by redundancies
- Details of the consultation process
- Details of who the company will consult with
- How long the process and consultation meetings will take
- Expected timeline of the process
- Information of who to contact about further information
Specific redundancy regulations in different countries may require slightly different approaches. A sample at risk of redundancy letter template for the UK is available on this page.
Procedure to follow when sending at risk of redundancy letter
The previous at risk of redundancy letter example should provide a suitable outline for any potential letters.
However, it is always worth making specific notes that relate to an employee’s team or department. This reassures them that there are options and alternatives to redundancy that are worth discussing.
The procedure to follow when sending these letters should respect an employee’s privacy. Provide these letters directly and discretely to the employee. You should also provide the opportunity to discuss the letter as soon as the employee receives it.
The letter itself should clarify that the employee can discuss their concerns and anything from the letter, yet providing immediate support can greatly help.
Depending on the options available to your company, you should make it clear that the employee can also seek support with assistance. For example, if your company has a union that represents employees, a representative from the union can also come with the employee.
Naturally, once the redundancy process is over, there will be no need for further role at risk of redundancy letters. Those who still retain their roles after passing consideration should receive a follow-up letter.
This will be a ‘role no longer at risk of redundancy letter’.
Get help with at risk of redundancy letters today with BrightHR
Once your company begins considering redundancies, at risk of redundancy letters are the first methods to inform your employees.
However, understanding how to professionally inform employees and offer them advice and support is vital for employers. This is when at risk of redundancy letter templates can make the process much smoother for both employees and employers.
A poorly written letter can result in confusion, panic, and tension with employees. This includes those who receive risk of redundancy letters and those who haven’t. Use our 'Job at risk of redundancy letter' template to help guide you.
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