Coronavirus Job Retention Scheme Furlough Leave Agreement
The Government's Coronavirus (COVID-19) Job Retention (furlough) Scheme ended on 30 September 2021. This Furlough Leave Agreement is now available for reference purposes only.
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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