Template Agreement Setting Out the Terms of Voluntary Redundancy

Voluntary Redundancy Agreement

EMP.RED.14

This Voluntary Redundancy Agreement sets out the terms which apply to the termination of an employee's employment following the acceptance of his or her application for voluntary redundancy. It should be used in conjunction with the Letter Setting Out Terms of a Voluntary Redundancy Agreement. 

This agreement 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. Our Settlement Agreements can be found here.

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 Voluntary Redundancy Agreement contains the following terms:

1. Date of Termination

2. Notice Period

3. Final Payment

4. [Bonus/Commission]

5. Holiday Entitlement

6. Return of Company Property

7. [Statutory Redundancy Pay]

8. Ex-Gratia Redundancy Payment

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