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Coronavirus Job Retention Scheme and Furloughing Letter Template

Coronavirus Job Retention Scheme Furlough Leave Letter

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This Coronavirus Job Retention Scheme and Furloughing Staff Letter should be used to explain an employer’s plan to furlough staff in response to the coronavirus (COVID-19) pandemic and pay them funds through the Coronavirus Job Retention Scheme (CJRS). In order to be eligible for the furlough leave grant, employers must write to their employees confirming that they have been furloughed. A record of this communication must be kept for five years.

The CJRS was due to end on 30 April 2021 but has now been extended to 30 September 2021.

In order to qualify for the Coronavirus Job Retention Scheme, employers will need to:

• Designate affected employees as ‘furloughed workers’, and notify employees of this change; and

• Submit information to HM Revenue and Customs (HMRC) about the employees that have been furloughed and their earnings through the online portal.

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. Employers can choose to top up the remaining 20% of salary but there is no requirement to do so. As explained in this letter, the employer will have to seek the employee’s agreement to place them on furlough leave. 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.

This Coronavirus Job Retention Scheme and Furloughing Staff Letter 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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