Furlough Leave Example Letter in Word format , click to download
Dear [insert employee name]
We are writing to you regarding the impact of the COVID-19 virus on the business, which means that we now need to seek your agreement to vary the terms of your contract with the Company. This is so that we can implement and take advantage of the Government’s Coronavirus Job Retention Scheme (“the Scheme”).
You will be treated as having been placed on “Furlough Leave” from 01/03/2020. This means that your contract of employment continues but you are not required to work. During this period of Furlough Leave, we will pay you 100% of your pay, calculated in accordance with the terms of the Scheme (your “Furlough Pay”).
Your Furlough Pay will be based on 80% of your gross salary as at 28 February 2020 excluding any fees, commission or bonus.
Your Furlough Pay will be subject to deductions for tax and employee National Insurance contributions [and employee pension contributions]. As far as practicable, payments will be made on your normal pay days. During Furlough Leave, your continuity of employment will continue.
[EITHER: Your terms and conditions of employment will remain the same during the period of Furlough Leave] OR [In relation to your other terms and conditions of employment, the following changes will apply as a result of the period of Furlough Leave].
The number of days of additional contractual holiday you accrue over the year will be reduced in proportion to the amount of time you spend on Furlough Leave.
Your Furlough Leave shall last at least three weeks and shall end on the earlier of the following events:
1. The Scheme ending (we expect the Scheme to be in place until at least the end of May 2020) or the Company no longer being able to claim under the Scheme in respect of you: or
2. The Company requiring you to return to work (whether or not working from home). We will try to give you at least seven days’ notice of when we need you to return.
If you are still on Furlough Leave when the Scheme ends, we would like to reassure you that we very much hope to be in a position where you can return to work. If, however, this is not possible, we will consult with you at the relevant time.
During your Furlough Leave, we will not provide you with any work. However, we may require you to do training at home. You can also undertake volunteer work, although you should take care to follow Government guidance on social distancing and self-isolation, as well as adhering to any updated or subsequent guidance in the event of a full lock-down. You may not undertake any paid work for any other organisation, or on your own account, without our permission. If you do so without our permission, this will be dealt with under our disciplinary policy and you may be liable to repay any sums we have paid to you under the Scheme.
Since we may need you to return to work at short notice and so that we can keep you informed of any developments, we expect you to check your e-mail/post/phone regularly during your Furlough Leave and to respond to our communications where requested within any timeframe specified.
If you need to contact the Company at any time during your Furlough Leave, please contact [insert name] in the first instance, via [e-mail and telephone].
It is essential that we have a record of your agreement to the terms in this letter as an indication of your agreement by 12/04/2020 in order to place you on Furlough Leave and pay you Furlough Pay. Please confirm your agreement by signing and returning this letter to [insert contact details].
I confirm my agreement to the variation of my terms and conditions of employment as stated in this letter.
Signed: …………………………….. Dated: …………………………………..