Coronavirus Job Retention Scheme Furlough Leave Letter
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
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
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.
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