The move comes as part of the authority's efforts to make significant budget savings as a result of cuts in public sector funding.

A target of 15 per cent savings over the coming three financial years has been set across the council, and reviews are currently underway in each of its services to identify opportunities for alternative service delivery, performance improvement and cost efficiencies.

Chief executive Sally Loudon said: "One of the things we are having to look at is to reduce the number of staff working for the council.

"We intend to do this by not replacing employees who leave, and also by offering employees the opportunity to volunteer for redundancy for which compensation will be paid."

The council currently employs approximately 5,100 staff in 4,284 full time equivalent (FTE) posts.

Every one of the authority's employees was told on Thursday they would be receiving a letter from Mrs Loudon later this week, detailing the options which may be available to them.

There is no guarantee that anyone who expresses an interest in voluntary redundancy will have their request approved, as the council must ensure that services can continue to function without particular posts.

"Individuals will only be permitted to leave subject to full consideration of the best interests of the council and the efficiency of their particular service," Mrs Loudon added.

"I appreciate that this is a difficult time for everyone, and creates a degree of uncertainty over our future. But I would like to reassure everyone that we will do all we can to avoid any compulsory redundancies, despite the level of savings we are having to make.

"I will ensure that all staff are kept fully informed of any developments.

"The situation will become much clearer once we see how many people express an interest in voluntary redundancy, and how many of those requests we may be able to accommodate."

Staff have been given until July 31 to respond.