How to Write a Professional Layoff Notice Letter: Example and Writing Tips

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What is a Layoff Notice?

A layoff notice is a letter or document that informs an employee that they’re being laid off from their job, either temporarily or permanently. The notice typically includes information about the reason for the layoff, the effective date of the layoff, and any severance or benefits that the employee may be eligible for. It’s usually given to the employee by their employer. It’s also known as a notice of termination or notice of redundancy.

How to Craft a Strong Layoff Letter?

Here are some tips for writing a professional layoff notice letter:

  • Use a formal business letter format: Start with your company's letterhead and address, followed by the date and the recipient's name and address.
  • Clearly state the purpose of the letter and the reason for the layoff: Use a clear and direct opening sentence to let the employee know that the letter is a notice of layoff. Example: "This letter is to inform you that, due to the recent economic downturn, your position with ABC Corporation will be temporarily / permanently laid off effective [date]."
  • Explain any severance or benefits that the employee may be eligible for: "We will provide you with [number] weeks of severance pay and [list any other benefits, such as outplacement services or continuation of health insurance]."
  • Express appreciation for the employee's service: Show appreciation for the employee's contributions to the company and express regret for the layoff. Example: "We would like to express our sincere appreciation for the hard work and dedication you have shown during your time at ABC Corporation. It’s with regret that we must take this step, but it’s necessary for the long-term sustainability of the company."
  • Provide contact information: Include contact information for the employee to reach out with any questions or concerns. Example: "If you have any questions or concerns, please don’t hesitate to contact [insert name] at [insert phone number] or [insert email address]."
  • Close the letter with a professional closing: End the letter with a closing such as "Sincerely" or "Best regards" followed by your signature and your name and title.

In summary:

It's important to remember that the main difference between a temporarily and permanently layoff notice is the date of return for the employee. A temporary layoff notice will have a date of return specified or the company's intention to return the employee back in the future. A permanent layoff notice won’t have any date of return and the employee won’t be returning to the company.

➤ Note: An unfair dismissal can have serious legal consequences!

Layoff Notice Letter Examples: Free Templates to Download

Example of a Permanent Layoff

Dear (name),

We regret to inform you that we are looking to down size our team, officially starting two months from now.

As many of you know, our business is seasonal and as a result, we can sometimes encounter over as well as under staffing issues.

The current flow of business has drastically slowed down which I am sure that most of you are well aware of.

Unfortunately we find ourselves in the difficult position of making some staffing changes in order to allow us to remain in business.

Starting from (date/month/year) you will no longer be required to report for work as (name of position) and your position will remain unavailable for the rest of the year.

We will be holding a general staff meeting next (day) to answer any questions you might have regarding your severance package which is to include pay up to and including (date).

We are very thankful for your team participation with (name of restaurant etc.) and hope to be able to welcome you during a busier season in the near future.

Sincerely,

(name + position tittle)

Example of a Temporary Layoff

Dear [Employee Name],

This letter is to inform you that, due to the recent economic downturn, your position with ABC Corporation will be temporarily laid off effective [date].

The length of the layoff is undetermined at this time, but we hope to bring you back to the company as soon as the situation improves. You will be eligible for severance pay of [insert amount] and continued health benefits for [insert number] of weeks. We will also make sure to keep you informed of any updates regarding the reopening of the position.

We would like to express our sincere appreciation for the hard work and dedication you have shown during your time at ABC Corporation. It is with regret that we must take this step, but it is necessary for the long-term sustainability of the company. We hope that you understand that this decision was not an easy one, but it is a necessary step to ensure the company's survival during these challenging times.

If you have any questions or concerns, please do not hesitate to contact [insert name] at [insert phone number] or [insert email address]. We will be more than happy to assist you in any way possible.

Sincerely,

[Your Name]

[Your Title]

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