Flexible Furlough Agreement Letter
The Government has extended the Coronavirus (COVID-19) Job Retention
Scheme until 30 April 2021. The template
Coronavirus Job Retention Scheme Furlough Leave Agreement
has been updated and is now available to use for the new extended
Coronavirus Job Retention (furlough) Scheme announced by the Chancellor
on 5th November 2020.
This Flexible Furlough Agreement Letter should be used by
employers to seek the agreement of employees to work reduced hours under
the Flexible Furlough Scheme. Records relating to these agreements should
be retained for six years. A copy of the Flexible Furlough Agreement letter
should be retained for five years. Flexible furlough is a part work/part
furlough arrangement. There is no requirement for employers to offer
flexible furlough arrangements and they are able to leave staff on full
furlough if they prefer.
The rules on how flexible furlough pay is calculated are complex but, in
general terms, employers will claim a pro-rated amount of 80% of salary (up
to a cap of £2,500 per month), based on the proportion of hours not worked
out of normal working hours. In order to submit a flexible furlough claim,
the employer is required to calculate a “baseline” number of “usual hours”
so that this can be compared with the actual hours worked. Employers must
pay employees in full for the hours they work.
This Flexible Furlough Agreement Letter includes the
1. A definition of furlough leave;
2. The working pattern that will apply during flexible furlough;
3. The amount of salary that the Company will pay i.e. 80% or 100%; and
4. The employee’s workplace during the periods they are working.
There are optional clauses depending on whether the employee is being kept
on flexible furlough or placed on flexible furlough 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 template Agreement 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.