This Letter is the First Redundancy Letter to be issued if you are making 20 or more employees redundant and therefore are having to have a Collective Consultation.
We would advise that you also read our factsheet: Redundancy. If you wish to or are able to explore alternatives to redundancy prior to commencing a redundancy consultation process (rather than during the redundancy process itself), please refer to our template letters: Letter Seeking Agreement to a Lay Off or Short-Time Working and Letter Seeking Agreement to Reduce Pay to avoid Redundancies and our factsheet: Considering Alternatives to Redundancy.
For Employees with at least 2 years’ service, or 1 year’s service in Northern Ireland, it is a requirement of a fair redundancy dismissal that employers consult with Employees prior to dismissal for redundancy.
Part of this consultation should include a consideration of alternatives to redundancy where these may avoid the redundancy.
There is no requirement to enhance payments for those taking voluntary redundancy, though you may wish to do so. If you already operate an enhanced voluntary redundancy scheme you may wish to refer to this – or state that, in the circumstances, you are unable to offer this.
If proposing to make 20 or more Employees redundant please see our factsheet: Collective Consultation on Redundancy.
In relation to any cashflow difficulties you may experience making redundancy payments now, there is an existing scheme providing for advance funding in some cases. Further details may be found here: https://www.gov.uk/staff-redundant/redundancy-pay.