Coronavirus Job Retention Scheme and Furloughing Letter Template

This Coronavirus Job Retention Scheme and Furloughing Staff Letter should be used to explain an employer’s plan to furlough staff in response to the coronavirus (COVID-19) pandemic and pay them funds through the Coronavirus Job Retention Scheme. In order to be eligible for the furlough leave grant, employers must write to their employees confirming that they have been furloughed. A record of this communication must be kept for five years.

On 20 March, the Chancellor announced a range of support measures for employers affected by the coronavirus (COVID-19) pandemic, including grants available under the Coronavirus Job Retention Scheme. Details of available support can be found here .

The final date by which an employer can furlough an employee for the first time will be the 10th June, in order for the current three-week furlough period to be completed by 30th June.

The scheme is intended to support employers to continue paying employees who would otherwise be made redundant or put on an unpaid period of lay-off during this crisis. In order to qualify for the Coronavirus Job Retention Scheme, employers will need to:

• Designate affected employees as ‘furloughed workers’, and notify employees of this change; and

• Submit information to HM Revenue and Customs (HMRC) about the employees that have been furloughed and their earnings through the online portal.

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. Employers can choose to top up the remaining 20% of salary but there is no requirement to do so. As explained in this letter, the employer will have to seek the employee’s agreement to place them on furlough leave.

The CJRS has been extended to October 2020 with the Scheme continuing in its current form until 30th June 2020. From July to October 2020 the Scheme will be changed so that furloughed employees can be brought back part-time and the amount that HMRC will reimburse will fall in August, September and October. 

This Coronavirus Job Retention Scheme and Furloughing Staff Letter 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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