FURLOUGH LEAVE AGREEMENT – Sample

Employee Name & Address: ————————–

Employer Name & Address: ————————–

 

(Date)

 

Dear [Subject]

 

I write further to our discussion on (date) in respect of the current coronavirus outbreak, and the challenges we face as a consequence in continuing to provide you with work for the foreseeable future.

 

During our discussion, I set out the impact that the current situation is having on our business, which is (insert details explaining the need to use furlough e.g. that, as a business in the hospitality sector, the Government has enforced our closure as part of its social distancing measures.)

 

We are therefore unable to offer *work to any of our employees for the time being/work of the kind that you are employed to perform for the time being, and we have been unable to identify any other role in the business which you would be in a position to undertake.

 

In order to help avoid significant large scale redundancies across the country from those businesses directly affected by this measure, on Friday 20th March 2020 the Government announced that it was setting up a new Coronavirus Job Retention Scheme (the Scheme) to help businesses.

 

So as to prevent the potential redundancies that would have arisen from the position we are currently in, we are applying to join the Scheme, which will entitle us to receive a grant to cover up to 80% of our employees’ wage costs for as long as we remain in the Scheme, up to a total of £2,500 per month per employee. The Scheme is initially expected to be in operation for three months, but it may very well be extended.

 

The Scheme requires us to designate affected employees as ‘furloughed workers’, and we intend to do this for (*all of our employees/all employees in the (insert details) department/other). We must then pass this information to HMRC and will be able to receive a grant to cover your wage to the extent set out above.

 

(EITHER)

Further to our discussion, we have agreed that you will be designated as a ‘furloughed worker’ as from (insert date) which means that your status as an employee has temporarily changed. You will now be a ‘furloughed worker’ for as long as we are unable to provide you with work and are enrolled on the Scheme. You will continue to receive 100% of your wage whilst you are a furloughed worker.

 

(OR)

Further to our discussion, we have agreed that you will be designated as a ‘furloughed worker’ as from (insert date) which means that your status as an employee has temporarily changed. You will now be a ‘furloughed worker’ for as long as we are unable to provide you with work and are enrolled on the Scheme. You have also agreed to a reduction in your wage to 80% of your basic wage, capped at £2,500 per month, whilst you are a furloughed worker.

 

If you do not agree with the above, please contact me directly as a matter of urgency.

 

We will keep your status as a ‘furloughed worker’ under continuous review and in the event that the position changes, you will be notified. At the present time, I do not know when this will be, but I can assure you that the Company will continue to monitor the evolving situation very carefully.

 

We are doing everything we possibly can to ensure we are able to survive the challenges we are facing. We appreciate that this is a difficult period for everyone and I would like to thank you for your continued loyalty to the business.

 

(Delete as appropriate)

I would like to remind you that you have access to a confidential telephone counseling service if you would like to talk to a trained counselor about any worries that you may be having about the impact of coronavirus, whether work-related or not. You can access this by (insert).

 

If you have any queries regarding the contents of this letter, please do not hesitate to contact me on (insert details).

 

Yours sincerely

 

 

[Firstname] [LastName]

 

 

Signed: _________________ Date ___________

(Employer)

 

Signed: _________________ Date ___________

(Employee)

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