What Is a Redundancy At Risk Letter?

A redundancy at risk letter is a formal written notification from an employer informing an employee that their role may be affected by proposed redundancies. It does not mean that the employee has been selected for redundancy, nor does it confirm that their job will definitely be made redundant. Instead, it indicates that the employee is at risk and may be included in a redundancy selection process.

In UK employment law, issuing an at risk letter is typically the first formal step in a redundancy process. It triggers consultation obligations and signals the start of discussions between employer and employee about potential job losses, alternatives to redundancy, and selection criteria. Employers who fail to manage this stage properly may face claims for unfair dismissal or breaches of redundancy procedure requirements.

This article explains what a redundancy at risk letter is, when it is used, what it should contain, employee rights, employer obligations, and the legal implications of being placed at risk of redundancy.

Understanding Redundancy in UK Employment Law

Redundancy arises where an employer reduces its workforce because:

• The business is closing.
• A workplace is closing.
• There is a reduced need for employees to carry out work of a particular kind.

Redundancy is not based on employee misconduct or performance. It is a form of dismissal linked to business requirements under the Employment Rights Act 1996.

However, even where redundancy is genuine, employers must follow a fair process. This includes consultation, fair selection, and consideration of alternative employment. A redundancy at risk letter forms part of the early communication stage in that process.

What Is a Redundancy At Risk Letter?

A redundancy at risk letter is a written notice informing an employee that:

• Their role is potentially affected by redundancy proposals.
• They may be placed in a redundancy selection pool.
• They are entering a consultation process.
• No final decision has yet been made.

It is sometimes also referred to as a “preliminary redundancy warning letter” or “at risk of redundancy notification”.

Importantly, being placed at risk does not mean dismissal is certain. It is a warning stage that allows consultation to begin and alternatives to be explored.

When Is a Redundancy At Risk Letter Issued?

An employer will usually issue an at risk letter when:

• A restructuring is being planned.
• A department is being reduced or reorganised.
• There is a reduction in available roles.
• Business demand has decreased.
• A merger or relocation is taking place.

The letter is typically sent before or alongside the first consultation meeting.

In larger redundancy exercises, employees may receive an at risk letter as part of a collective consultation process involving trade unions or employee representatives.

What Should a Redundancy At Risk Letter Contain?

Although there is no strict statutory format, a fair and compliant redundancy at risk letter will usually include:

1. Explanation of the Situation

The letter should explain:

• Why redundancies are being considered.
• The business reasons behind the proposal.
• Which areas of the organisation are affected.

2. Confirmation of “At Risk” Status

It should clearly state that:

• The employee is at risk of redundancy.
• No final decision has been made.
• Consultation will take place.

3. Invitation to Consultation

The letter should confirm:

• The start of the consultation process.
• Details of consultation meetings.
• The employee's right to respond and ask questions.

4. Selection Process Information

Where applicable, the letter may outline:

• The redundancy selection pool.
• Proposed selection criteria.
• How employees will be assessed.

5. Alternative Employment Options

Employers may also indicate:

• Whether alternative roles may be available.
• Whether redeployment will be considered.
• Whether employees can apply for internal vacancies.

What Is the Legal Purpose of an At Risk Letter?

The primary legal purpose is to begin a fair consultation process.

Under UK employment law, redundancy dismissals are only considered fair if the employer:

• Has a genuine redundancy situation.
• Follows a fair consultation process.
• Applies fair selection criteria.
• Considers alternative employment.

A redundancy at risk letter helps establish that consultation has begun at an early stage, before decisions are finalised. Failure to consult properly can lead to unfair dismissal claims before an Employment Tribunal.

Employee Rights After Receiving an At Risk Letter

Receiving a redundancy at risk letter does not immediately affect employment status. Employees remain employed and continue to have full contractual rights.

Typical rights include:

• The right to be consulted before any final decision is made.
• The right to attend consultation meetings.
• The right to ask questions and raise concerns.
• The right to challenge selection criteria or scoring.
• The right to be considered for alternative roles.
• The right to redundancy pay if ultimately selected and eligible.

Employees with at least two years' continuous service may also be eligible to bring an unfair dismissal claim if the process is not handled fairly.

Consultation Process After an At Risk Letter

Once an employee has been placed at risk, consultation begins.

Consultation is a two-way process involving discussion between employer and employee. It should not be a formality.

Key topics often include:

• Business reasons for redundancy.
• Ways to avoid redundancy.
• Selection pools and criteria.
• Scoring or assessment methods.
• Alternative employment opportunities.
• Voluntary redundancy options.

Employers are expected to genuinely consider employee feedback. A failure to do so can undermine the fairness of the process.

Is an At Risk Letter the Same as Redundancy Notice?

No. A redundancy at risk letter is not the same as a redundancy dismissal notice.

The key difference is:

• At risk letter: Notification that redundancy is being considered.
• Redundancy notice: Formal termination of employment following consultation and selection.

Employees remain employed during the at risk and consultation stages. Dismissal only occurs once the process is complete and notice is formally issued.

Selection Pools and the At Risk Stage

The at risk stage is often linked to the creation of a redundancy selection pool.

A selection pool is the group of employees from which redundancies will be chosen. Employees placed at risk are typically included in this pool.

Employers must ensure that:

• The pool is reasonable.
• Employees performing similar work are included.
• The pool is not artificially narrowed to target specific individuals.

Employment Tribunals frequently examine whether the correct pool was chosen when assessing unfair dismissal claims.

Legal Risks if the At Risk Process Is Unfair

If an employer handles the at risk stage improperly, several legal risks may arise.

Unfair Dismissal Claims

Employees may claim that the redundancy process was procedurally unfair, particularly if consultation was inadequate or decisions were pre-determined.

Discrimination Claims

If selection or at risk decisions disadvantage protected groups, claims under the Equality Act 2010 may arise.

Protective Awards (Collective Redundancy)

In large-scale redundancies, failure to consult properly may result in protective awards requiring significant compensation payments to employees.

Common Issues with Redundancy At Risk Letters

Several issues frequently arise in practice:

Lack of Clarity

Letters that do not clearly explain the situation can create confusion and undermine consultation.

Late Issuing

If issued after decisions have effectively been made, consultation may be deemed unfair.

Failure to Identify Selection Criteria

Without clear criteria, employees may be unable to understand how decisions are being made.

Perception of Predetermination

If wording suggests the outcome is already decided, tribunals may find consultation was not genuine.

Can Employees Challenge Being Placed at Risk?

Employees cannot usually prevent being placed at risk, but they can challenge:

• The fairness of the selection pool.
• The accuracy of information used.
• The proposed selection criteria.
• Any discriminatory treatment.
• The consultation process itself.

Concerns are typically raised during consultation meetings and may be escalated through internal grievance or appeal procedures.

Time Limits for Legal Claims

Employees considering legal action should be aware of strict time limits.

Most unfair dismissal claims must be brought within three months less one day from the effective date of termination. Before submitting a claim, employees must usually complete Acas Early Conciliation.

Missing these deadlines can prevent a claim from proceeding, regardless of merit.

Common Questions from our Readers

Does an at risk letter mean I will be made redundant?

No. It means your role is under consideration, not that a final decision has been made.

Can I be dismissed immediately after receiving an at risk letter?

No. Employers must complete consultation and a fair process before any dismissal.

Do I still get paid if I receive an at risk letter?

Yes. Employment continues as normal unless and until redundancy occurs.

Can I apply for other jobs after receiving an at risk letter?

Yes. Employees are often encouraged to apply for internal vacancies as part of redeployment efforts.

Is consultation required after an at risk letter?

Yes. Consultation is a key legal requirement before any redundancy decision is finalised.

Final Thoughts

A redundancy at risk letter is an early-stage notification that an employee's role may be affected by proposed redundancies. It forms the starting point of a legally significant consultation process designed to ensure fairness, transparency, and consideration of alternatives to dismissal.

While it does not mean an employee will definitely lose their job, it signals that redundancy is being considered and that the employer must follow a structured and fair process. Employees should use this stage to engage with consultation, understand selection criteria, and explore alternative roles. Employers must ensure that at risk letters are clear, timely, and part of a genuine consultation process to avoid legal challenges such as unfair dismissal or discrimination claims.