Coronavirus Job Retention Scheme Furlough Letter Template
Template below – please feel free to cut and paste, if you would like us to forward a Word Document to you please email us by clicking HERE
[EMPLOYEE NAME AND ADDRESS]
Dear [EMPLOYEE NAME]
The current Coronavirus pandemic is unprecedented and as you will be aware has had a massive effect on our business. The situation is unlikely to get better for the foreseeable future and as such we have had no other option but to consider, on a temporary basis, changes to the business which will protect its long term viability.
At the moment the type of work that you carry out during the course of your employment has ceased and therefore there is no work for you to do. You will be aware that the Government has introduced a Coronavirus Job Retention scheme which we have reviewed and taken advice on. In simple terms the proposal is that the furlough subsidy repaid to employers will be based upon 80% of all employment costs including NI and Employers Auto Enrolment pension costs, up to £2,500. As such employees may not actually receive 80% of their monthly take home pay as there are a huge range of potential calculations dependent on income levels and these will be calculated on a case by case basis. The scheme will initially last for three months from 1st March 2020 but may be extended. We have considered matters carefully and we have concluded that this scheme represents the best chance we have of being able to protect your long term employment.
We are proposing to place you on furlough with effect from . This will mean for the foreseeable future you will not be asked to attend work or work from home. You will remain an employee during this period. This is a temporary measure and as soon as we can return you to normal working conditions we will endeavour to do so. Other than the headline terms the details of the Job Retention Scheme are scant at the moment. As soon as further detail is provided we will update you as soon as we can.
Our contract of employment with you reserves the right to lay you off or impose short time working. In any event however we would be grateful if you could confirm that you agree to these temporary measures by email and as soon as possible.
We appreciate your loyalty at this time and hope that we will all be able to return to normality as soon as possible. As the situation develops we will keep you updated. In the interim please stay safe. If you have any queries please contact me.