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Coronavirus Job Retention Scheme (CJRS) – Furloughed Worker / Director

CJRS Furloughed Worker – Letter template

On Friday 20 March 2020, the Chancellor announced a package of “temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19” including the Coronavirus Job Retention Scheme.

Details of the scheme were published on 26 March 2020. We have also produced a template letter, for employers to use when seeking to put employees on furlough leave under the Coronavirus Job Retention Scheme. This letter is based on the official guidance available as at 27 March 2020 but we may update it again if the Government publishes additional guidance on the operation of the Scheme.

Please feel free to use the document template below.

Simply copy the template, replacing the [REQUIRED FIELDS] with your information.


Dear [Employee Name]

FURLOUGH LEAVE

We are writing to you regarding the impact of the COVID-19 virus on the business, which means that we now need to seek your agreement to vary the terms of your contract of employment with the Company. This is so that we can implement and take advantage of the Government’s Coronavirus Job Retention Scheme (the Scheme).

You will be placed on ‘Furlough Leave’ from [DATE]. This means that your contract of employment continues, but you are not required to work. During the period of Furlough Leave, we will pay you 80% of your pay up to a maximum of £2,500 per month, excluding any fees, commission, or bonus, calculated in accordance with the terms of the Scheme (your Furlough Pay). Your Furlough Pay will be subject to deductions for tax and employee national insurance contributions [and employee pension contributions]. As far as practicable, payments will be made on your normal pay days. During Furlough Leave, your continuity of employment will continue.

Your other terms and conditions of employment will remain the same during the period of Furlough Leave.

Your Furlough Leave shall last at least three weeks and shall end on the earliest of the following events:-

  1. the Scheme ending (we expect the Scheme to be in place until at least the end of May 2020) or the Company no longer being able to claim under the Scheme in respect of you; or
  2. the Company requiring you to return to work (whether or not working from home).

If you are still on Furlough Leave when the Scheme ends, we would like to reassure you that we very much hope to be in a position where you can return to work. If, however, this is not possible, we will consult with you at the relevant time.

During your Furlough Leave, we will not provide you with any work. However, we may require you to do training at home. You can also undertake volunteer work, although you should take care to follow Government guidance on social distancing and self-isolation, as well as adhering to any updated or subsequent guidance in the event of a full lock-down. If you currently have a second job with another employer, you may continue with that job. You may not undertake any other paid work for any other organisation, or on your own account, without our permission. If you do so without our permission, this will be dealt with under our disciplinary policy and you may be liable to repay any sums we have paid to you under the Scheme.

Since we may need you to return to work at short notice, and so that we can keep you informed of any developments, we expect you to check your email/post/phone regularly during your Furlough Leave, and to respond to our communications where requested within any timeframe specified.

It is essential that we have a record of your agreement to the terms in this letter as an indication of your agreement by [DATE] in order to place you on Furlough Leave and pay you Furlough Pay. Please confirm your agreement by signing and returning this letter to [contact details].

Kind regards

[Name, position]

****
I confirm my agreement to the variation of my terms and conditions of employment as stated in this letter.

Signed: _________________ Date ___________
(Employee)


 

CJRS Furloughed Director – Minutes of Meeting template

We have also produced template board minutes, for directors to use when begining furlough leave under the Coronavirus Job Retention Scheme.

Please feel free to use the document template below.

Simply copy the template, replacing the [REQUIRED FIELDS] with your information.



[Company name] Limited

MINUTES OF A MEETING OF THE DIRECTORS

Held at: [Your address]

On: [Date]

At: [Time]

Present: [Directors’ names]

IT WAS RESOLVED THAT due to the ongoing COVID-19 (Coronavirus) pandemic and its impact upon the company’s business:

[Name of director(s)] would be furloughed under the Government Job Retention Scheme (“the Scheme”) with effect from [insert start date, this cannot be before 1 March 2020].

The Board considers that [Name of director(s)] is able to continue to meet the requirements of the Companies Act 2006 with regards to directors duties without breaching the conditions of the Scheme but will continue to review the position during the furlough period.

The furlough period would last a minimum of 3 weeks and end on such date as to be determined by the Board but no later than 31 May 2020 unless this date is extended by the government.

[Name of director**] would not be required to work until further notice, other than to do what is necessary to fulfil their statutory duties as director(s) under the Companies Act, but would continue to be paid [as normal / would receive 80% of their normal pay / would receive pay of £2,500*** per month.]*

…………………………….

[name of chair of meeting]

Chairman