Private & Confidential
Name
Address
Date
Dear [NAME],
Re: Impact of coronavirus on our organisation & Furloughed Staff
Due to the current reduction in demand for your type of work (due to Covid-19 and in line with recent Government Guidance on working), we had a [meeting/conversation] held on [DATE], where we discussed the option of Furlough for a temporary period of time.
We regretfully confirm that we have agreed and designated you as a furloughed member of staff.
The Company has the right to do this because your employment contract makes provision for lay-offs.
The period of furlough shall take effect on [DATE] and shall continue [indefinitely** OR until DATE].
You have agreed to be designated as a furloughed worker and will receive 80% of your basic contractual wage. As a result of being furloughed, you must not undertake any work for the Company during this period (i.e. until the period of furlough is over).
During the furlough period, a furloughed worker will:
➢ continue to be employed by us;
➢ not carry out any work for us; and
➢ continue to receive basic salary although reduced by 20%.
Terms and conditions of employment, accrual of holiday entitlement and continuity of employment will not be affected during this period.
As your salary is being reduced, you may also be eligible for support through the welfare system, including Universal Credit. You may wish to read the Government Guidance on the Coronavirus Job Retention Scheme which is being continually updated.
The Company will keep this situation under review and update you as and when new guidance is received from public health and the government.
We regret that we have been forced to take this action. However, we are working hard to make positive changes in the Company’s position to protect both you and the Company as best as possible. Please sign and return the below declaration so that we can process this change to your employment status as soon as possible.
We realise that this is a very unsettling period for you but wish to assure you that it will be handled as sensitively as possible.
If you have any queries in relation to this letter, please do not hesitate to contact me.
Yours sincerely