Furlough Letter Template
Monday, March 30th, 2020 in: Advice
Furlough Letter Template
THIS IS LETTER IS AN EXAMPLE AND SHOULD BE USED AS GUIDE, EMPLOYMENT LAW ADVICE SHOULD BE SOUGHT ON SELECTING EMPLOYEES AND EMPLOYEE NOTIFICATION.
NOTICE OF FURLOUGH UNDER THE GOVERNMENT CONRONAVIRUS JOB RETENTION SCHEME
Dear [Insert name of employee],
NI NUMBER AND / OR PAYROLL NUMBER
In order to manage the financial difficulties resulting from Coronavirus (COVID-19), the business has unfortunately needed to take extraordinary measures. In order to avoid an immediate redundancy scenario this letter is to therefore notify you that your position will now become one of a furloughed employee, as we have discussed and agreed with you. This means you will not be able to work for the company from the first date you have been furloughed.
Your furlough commencement date is: [Date] and will end [Date]
Please understand this action in no way reflects dissatisfaction with your job performance, it is due to the unprecedented position the business and the country is in.
Under the government scheme this means that you will receive a maximum of 80% of your normal wage which is capped at £2,500 per month.
Will the company make any additional top up payments to you: [Yes/No] (include detail as applicable)
At the time of writing, the length of the job retention scheme is until the end of May 2020. We will provide further communication on whether this will be extended or what will happen after this date in due course. During this period, you will not be required to report to work from the start of your furlough period above but you will remain in employment.
During your Furlough Leave, you may not work for any other organisation, or on your own account. If you do, you must tell us, and you may be liable to repay any sums we have paid you under this scheme if we become liable to repay it to the Government.
Rent: as your job has been furloughed all landlords have been banned from evicting for a minimum of three months; you should consider asking for a reduction in rent or a rent holiday.
Mortgages; as your job is furloughed you may be able to apply for a 3 month mortgage holiday. You will need to repay this in future. We do not know the terms of this holiday or the repayment requirements but you can ask your mortgage company.
If you need evidence of being furloughed please do not hesitate to contact us for a letter of confirmation.
You can email me at any time with questions, concerns or worries.
Obviously, as news develops and more guidance on the scheme is issued this letter may need to be changed or varied. We are endeavouring to help our clients and contacts, but do please be aware that we can accept no liability for any errors or omissions.
If you have any questions or need any advice or assistance, please get in touch.
[Insert director name]
I understand that to avoid redundancy I agree to become a furloughed employee from the date set out above.