Coronavirus Job Retention Scheme Furlough Leave Agreement Template

Under the Government’s Coronavirus (COVID-19) Job Retention Scheme, staff may be designated (with their agreement) as a "furloughed worker” and the Company can continue to pay them through funding from the Government's Coronavirus Job Retention Scheme (CJRS). The Government will reimburse 80% of the wage cost of furloughed employees up to a cap of £2500 per month. Employers can, but are not required to, make up the 20%.

The final date by which an employer can furlough an employee for the first time will be 10th June 2020, in order for the current three-week furlough period to be completed by 30th June 2020.

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 – Agreement for Furlough Leave should be used to seek employees’ agreement to the Company placing them on Furlough Leave. Placing an employee on furlough leave is a variation to the contract of employment and so written agreement to the change should be obtained. The government has advised that these written records must be retained for five years.

This letter includes the following:
1. A definition of furlough leave;
2. The amount of salary that the Company will pay i.e. 80% or 100%; and
3. When the Furlough Leave shall end.

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 Coronavirus Job Retention Scheme – Agreement for Furlough Leave 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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