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Furlough Letter

Updated: Jul 7, 2021

Please find a letter that the employer should present to his employees, when put their employees on "furlough"

The letter can be copied and in place of [..] enter the appropriate data.


Letter for Employees on Full Furlough

NOTE: This letter assumes that the employer will pay 80% of the employee’s pay only, up to the £2,500 per month cap, although it is open to employers to top up employees’ Furlough Pay to 100% of normal pay if they wish to do so. If you intend to top up pay you will need to amend the wording of this letter accordingly.

Template letter

Date [date]

Dear [Employee Name]

Furlough leave

We are writing to you regarding the continuing impact of the Covid-19 pandemic on our business. As you know, on 31 October 2020, the government announced a second lockdown in England. It has delayed the start of the Job Support Scheme Open (JSS Open) which was due to commence on 1 November and has instead provided for an extension to the Coronavirus Job Retention Scheme, which we refer to as the Lockdown Extension Scheme.

We wish to agree with you that you will be placed on Furlough Leave from [DATE]. This means that your contract of employment will continue, but from [DATE] you will not be required to work. (Although under the Lockdown Extension Scheme employees can work on a part-time basis (known as "Flexible Furlough"), we do not currently require you to work at all and you will therefore be on full Furlough Leave.)

During the period of Furlough Leave, your normal entitlement to pay under your terms and conditions of employment will be suspended. Instead, we will pay you 80% of your pay up to a maximum of £2,500 per month, calculated in accordance with the terms of the Lockdown Extension 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 end on the earliest of the following events:

  • the Lockdown Extension Scheme coming to an end or the Company no longer being able to claim under the Lockdown Extension Scheme in respect of you, or

  • the Company needing you to move onto Flexible Furlough where you will work on a part-time basis. If we need to move you onto Flexible Furlough, we will discuss with you any part-time work we wish you to undertake, your pay for such work and how this will affect your Furlough Pay and will confirm any changes in writing, or

  • the Company requiring you to return to work on your normal contractual hours (whether or not working from home). We will try to give you at least [NUMBER] days’ notice of when we need you to return, or

  • your employment with the Company being terminated for any reason, whether by you or by the Company.

Please note that during Furlough Leave, we may need to consider and consult with you about whether you can return to work on the basis of your normal contractual hours, or if we may need to make changes to terms and conditions, or consider placing you on the JSS Open or other relevant government schemes that may become available. In addition, please be aware that we may need to consult with you about your possible redundancy and take steps to implement any necessary redundancy dismissal at the appropriate time, including while the Lockdown Extension Scheme is in operation.

Your sincerely

[Your Name}


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