Dear [Name]

We regret to have to inform you that the company has decided to make you redundant with effect from today. You are aware that the company is being restructured and the volume of work has been substantially reduced.

We have attempted to find a suitable position corresponding to your skills and qualifications elsewhere within the company, but there is nothing available.

You are entitled to one month’s notice of termination, but we believe it is in your and in the company’s interest if you leave with immediate effect. The company will pay you a gross sum of £xxx as compensation for the termination of your employment subject to such deductions as the company is required to make from that sum regarding any tax charges or levies. This sum is calculated as follows:

  1. X weeks’ gross salary at £xxx per annum £xxx
  2. XY days’ accrued holiday £xxx

In addition, the company will make you a statutory redundancy payment of £xxx. This is calculated according to your age, salary (subject to a statutory maximum of £330 per week) and the number of years’ service with the company, i.e.

XYZ x X x Y

The company will therefore pay you a total sum of £xxx immediately on your signature and after you have returned the enclosed copy of this letter.

You accept that this payment made by the company is in full and a final settlement of your claim for compensation and/or damages for the termination of your employment with effect from today.

You will return all property in your possession belonging to the company.

Please acknowledge receipt of this letter by signing and returning the acknowledgement on the enclosed copy of this letter.

Yours sincerely

HR Manager

I acknowledge receipt of the letter of which the above is a copy and of the compensation payment which is referred to in the letter.

Signed ____________________________________________

Date of Signature ___________________________________

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