The Government has extended the Coronavirus (COVID-19) Job Retention Scheme
until 30 April 2021.
Staff may be designated (with their agreement) as a "furloughed worker” and
the Company can continue to pay them through funding from the Government's
Coronavirus Job Retention Scheme (CJRS). In order to be eligible for the
extended CJRS, employees must have been on the payroll on, or before, 30
October 2020. Employees cannot work for the employer while on furlough
leave. The Government will reimburse 80% of the wage cost of furloughed
employees up to a cap of £2500 per month. Employers can, but are not
required to, make up the 20%.
Employers cannot claim for pension contributions or employer NICs from the
This Coronavirus Job Retention Scheme – Agreement for Furlough Leave should
be used to seek employees’ agreement to the Company placing, or retaining,
them on Furlough Leave. Placing an employee on furlough leave is a
variation to the contract of employment and so written agreement to the
change should be obtained. The government has advised that these written
records must be retained for five years.
This letter includes the following:
1. A definition of furlough leave;
2. The amount of salary that the Company will pay i.e. 80% or 100%; and
3. Optional clauses depending on whether the employee is being kept on
furlough leave or placed on furlough leave for the first time.
Optional phrases / clauses are enclosed in square brackets. These should be
read carefully and selected so as to be compatible with one another. Unused
options should be removed from the document.
This Coronavirus Job Retention Scheme – Agreement for Furlough Leave is in
open format. Either enter the requisite details in the highlighted fields
or adjust the wording to suit your purposes.
Once you have purchased access to the appropriate document folder click on
the “Download Document” link below. You will be asked what you want to do
with the file. It is recommended that you save the document to a location
of your choice prior to viewing.