28 March 2020

Furlough template letter

[If not on headed paper include] [Employer name and address]

[Date]

Dear [Employee name]

Due to the ongoing COVID-19 (Coronavirus) pandemic, we have identified you as a suitable employee [to be furloughed / agreed with you that you will be furloughed] under the Government Job Retention scheme.
This means you will not be required to work until further notice but will continue to be paid [as normal / and will receive 80% of your normal pay / you will receive pay of £2,500** per month.]

Income tax and national insurance will be deducted from your pay as normal. You will continue to be our employee during the furloughed period, however, you must not undertake any work for us during this period.

Your furlough period starts on [insert start date, this cannot be before 1 March 2020]. It will end on the earlier of:
- The date we request you to return to work.
- 31 May 2020 unless this date is extended by the government. We will notify you if this is the case.

We expect the period not to exceed three months which may be extended if government restrictions mean that it is not possible to return to work.

We agree that you may undertake other paid temporary work/and unpaid voluntary work during your furloughed period. We will contact you when you are required to return to work.

Please sign the attached form to confirm your agreement to being a furloughed employee and return as soon as possible.

Yours sincerely


[your name]
Notes for completion - DELETE BEFORE SENDING
**Only use the £2,500 per month option where employee earnings are such that 80% of their normal gross pay is more than £2,500 per month. For example, someone earning £3,500 per month would be due £2,800 at 80% but this is reduced by the cap to £2,500.

You will NOT need your employee's agreement to the furlough if:
- They will continue to receive their full pay.
- Their contract allows you to reduce their pay if there is no work for them.

-----------------------------
For a furloughed employee to return to the employer
----------------------------
I [Employee name] consent to being a furloughed employee until such time as I am asked to return to work

I understand that I remain an employee of [insert name of employer] and must continue to adhere to the terms of my employment other than by prior agreement with my employer which includes not working for this business.



----------------------------
PRINT NAME

----------------------------
SIGN HERE

----------------------------
DATE