Coronavirus – Furlough Template for Directors / Employers

 In Coronavirus

If you intend to furlough, or will be furloughing an employee, you can use the template below, which must be sent to notify them of the furlough period. If you are furloughing yourself, you can send us a copy of the completed template by email for your / our records.

If you are not sure whether to furlough or not, please read our previous article, or contact us if you are still unsure.

Further details on how to designate employees and directors on the online portal are not yet available but we will update you as soon as they are.

Remember if you furlough, you cannot continue legally continue to do any work within your company, so do give it some thought.

Furlough Template

Insert business name here

Title: Insert director / employee title
Forenames: Insert director / employee forename
Surname: Insert director / employee surname

Job title: Insert job title e.g. Director

Dear Insert director / employee full name

As you are aware, we were forced to close our business on insert date due to the COVID-19 pandemic.

This is to inform you that insert business name will be exploring the Coronavirus Job Retention Scheme, an alternative solution to employees being laid off or being made redundant, in view of the company’s downturn in business caused by the Coronavirus epidemic and the closure of our business on insert date.

Your furlough leave commences on insert date and will continue for the time being. For each day you remain on furlough leave the company will pay you 80% of your normal wage gross of Tax and National Insurance. We are unable to top up your pay due to limited resources and the severity of the crisis.

It is expected the normal pay cycle will remain the same. However, the scheme is currently being set up by the government and is dependent on funds being released under the scheme.

During the terms of the furlough leave, you will remain bound by all terms of your employment. You must remain available for work. The company is entitled to cancel your furlough leave at any time and require you to perform your job role. Should you fall ill or need to self-isolate, you must notify us as per your terms of employment and company procedure. Throughout the duration of the furlough leave you must strictly follow the advice of the government and stay at home and limit your social contact, only going out if it is absolutely necessary, for example to get food or medication.

The proposal of furlough leave has not been put forward lightly but as a measure of saving your job. You are not obliged to consent to this proposal. If you do not consent, the company with regret, will have to explore the options of laying you off and redundancy in view of the precarious position of the company. If you require clarification or have a view you wish to put forward, please do not hesitate to contact me.

Please be assured that furlough is not an action taken due to dissatisfaction of your performance.

We thank you for all the contributions you have made and we hope to see you back at work soon. We will keep you updated as we learn of any developments and communicate return dates as we learn more about the issue. We would like to maintain regular contact with you if for nothing else to ensure that you are safe and well during the time of the Pandemic.

If you need us for anything, advice or assistance, please get in touch with us.

If you accept the proposed furlough leave, please complete and sign as indicated below. This is your copy and we will retain a copy for our records.

Best regards

[Insert Business Name]

 

Need other support?
Please see our other articles for additional business support schemes available including deferred VAT and July Self Assessment payments, SSP for two weeks for directors and employees who contract coronavirus, the coronavirus job retention scheme (CVRS) and the grants available for businesses who pay rates, or get small rate relief.

In addition, if you have not done so already, please contact your insurance company to see if you are covered for pandemics and consider calling your mortgage company for a payment holiday.

Further Information
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Stay Safe.

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