Under the Government’s Coronavirus (COVID-19) Job Retention Scheme, 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). 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%.
This Coronavirus Job Retention Scheme – Agreement for Furlough Leave should
be used to seek employees’ agreement to the Company placing 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. When the Furlough Leave shall end.
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.
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