The Government has extended the Coronavirus (COVID-19) Job Retention
(furlough) Scheme until 30 September 2021.
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). In order to be eligible for the
extended CJRS, employees must have been on the payroll on, or before, 2
March 2021. 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%. NOTE: the government
contribution will reduce to 70% in July 2021 and 60% in August and
September 2021.
Employees cannot work for the employer while on full furlough leave, but a
separate flexible furlough scheme (part work/part furlough) is available.
Employers cannot claim for pension contributions or employer NICs from the
CJRS.
This Coronavirus Job Retention Scheme – Agreement for Furlough Leave should
be used to seek employees’ agreement to the Company placing, or retaining,
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. Optional clauses depending on whether the employee is being kept on
furlough leave or placed on furlough leave 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 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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