This Letter Setting Out the Terms of a Voluntary Redundancy Agreement should be used to confirm to an employee the terms which apply to the termination of employment following the acceptance of his or her application for voluntary redundancy.
This letter offers alternative paragraphs depending on whether or not the employee:
• has to work his/her notice period;
• is being paid in lieu of accrued and unused holiday or is required to use holiday during the notice period;
• is eligible for bonus or commission; and
• is required to sign a settlement agreement.
The agreement referred to in this document (see separate Voluntary Redundancy Agreement) setting out the terms of the employee's voluntary redundancy cannot be used to prevent an employee from taking claims, e.g. for unfair dismissal or unlawful discrimination, to an employment tribunal. If the employer wishes to protect itself against such claims, it must make arrangements for a separate settlement agreement. There is an optional clause for this in the letter.
Where an individual volunteers, and is accepted by the employer for redundancy, he or she is in the same legal position as employees selected compulsorily. This means that the employee is entitled to receive a statutory redundancy payment, subject to his or her having had a minimum of two years' continuous service.
This letter should be used in conjunction with the Voluntary Redundancy Agreement and they should both be sent to the employee.
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