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Downsizing Termination Letter for the United Kingdom

Downsizing Termination Letter Template for England and Wales

A formal written notification issued under English and Welsh law to terminate employment due to redundancy. This document outlines the terms of termination, including notice period, redundancy pay calculations, and final entitlements. It ensures compliance with UK employment legislation, particularly the Employment Rights Act 1996 and Equality Act 2010, while providing clear communication of the redundancy decision and its implications.

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Downsizing Termination Letter

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What is a Downsizing Termination Letter?

A Downsizing Termination Letter is essential when organizations need to reduce their workforce due to business restructuring, economic conditions, or operational changes. This document, governed by English and Welsh law, serves as official written confirmation of redundancy, detailing the termination date, redundancy pay, notice period arrangements, and other relevant entitlements. It must comply with UK employment legislation, including consultation requirements and non-discrimination provisions. The letter forms part of the formal documentation required for legal compliance and helps protect both employer and employee interests during the redundancy process.

What sections should be included in a Downsizing Termination Letter?

1. Letter Header: Company details, date, employee details

2. Confirmation of Redundancy: Clear statement of termination due to redundancy

3. Effective Date: Last day of employment

4. Reason for Redundancy: Brief explanation of business circumstances

5. Financial Details: Redundancy pay calculation and final salary information

6. Notice Period: Confirmation of notice period or payment in lieu

What sections are optional to include in a Downsizing Termination Letter?

1. Alternative Employment: Details of any alternative positions offered, use when available

2. Support Services: Information about outplacement support, use when provided

3. Garden Leave: Terms of garden leave if applicable

4. Reference Provision: Details about future reference arrangements

What schedules should be included in a Downsizing Termination Letter?

1. Redundancy Payment Calculation: Detailed breakdown of redundancy payment

2. Final Payment Breakdown: Itemized list of final payment including holiday pay, bonuses, etc.

3. Company Property Return Checklist: List of items to be returned before departure

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Cost

Free to use
Relevant legal definitions




















Clauses




















Industries

Employment Rights Act 1996: Primary legislation establishing redundancy rights framework, including statutory redundancy pay requirements, definition of redundancy, and fundamental employee rights during the redundancy process

Equality Act 2010: Legislation ensuring redundancy selection process is non-discriminatory, protecting against unfair selection based on protected characteristics such as age, gender, disability, race, and religion

Trade Union and Labour Relations (Consolidation) Act 1992: Governs collective consultation requirements for mass redundancies (20+ employees), including obligations to consult with unions or employee representatives and specified consultation timeframes

TUPE Regulations 2006: Regulations protecting employee rights during business transfers, relevant when redundancy is connected to transfer of business ownership or operations

ACAS Code of Practice: Non-legislative guidance considered by courts, providing best practice standards for handling redundancy processes and procedures

GDPR and Data Protection Act 2018: Data protection legislation governing the handling and storage of personal information during redundancy processes, including record-keeping requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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