Flexible Furlough

Flexible Furlough Agreement LetterNew


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.

The Flexible Furlough Scheme is an amendment to the Coronavirus Job Retention Scheme (CJRS), which comes into effect as of 1 July. As of that date, employees who have already been furloughed are permitted to work reduced hours and their employer can claim under the CJRS for employees' wages for the normal hours that they do not work.

This Flexible Furlough Agreement Letter includes optional clauses covering different flexible furlough arrangements and asks the employee to sign the agreement to indicate their agreement to the terms set down in the letter.

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, 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.

In respect of full furlough, the minimum three-week period for furlough has been removed with effect from 1 July 2020. There is no minimum furlough period after 1 July, although any claim must relate to a minimum one-week period.

Employer funding under the CJRS will gradually decease from 1 August 2020 and the CJRS will end on 31 October 2020.