The Government has extended the Coronavirus (COVID-19) Job Retention
Scheme until 30 April 2021. The
Coronavirus Job Retention Scheme Furlough Leave Agreement ( available here ) and the Flexible Furlough Agreement Letter (
templates have been updated and are now available to use for the new
extended Coronavirus Job Retention (Furlough) Scheme announced by the
Chancellor on 5th November 2020.
Employers can backdate a furlough agreement to 1 November provided
that the agreement is in place on, or by, FRIDAY 13 NOVEMBER 2020.
This Directors’ Flexible Furlough Agreement Letter should
be used by employers to seek the agreement of directors, who are contracted
permanent 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 Directors’ 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 directors 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 directors who are employees in full for the hours they work.
This Directors’ Flexible Furlough Agreement Letter
includes the following:
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 director’s workplace during the periods they are working.
There are optional clauses depending on whether the director 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 Directors’ Flexible Furlough Agreement Letter 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.