furlough letter template

COVID-19: Furlough Letter

In light of some of our members requesting information about the government’s job retention scheme, we have prepared a furlough template letter that employers can use.

In short, employers must write to their employees and get agreement that the employee is willing to accept that their position has been selected to become that of a furloughed employee. This is a measure where the employer would otherwise be making an employee redundant.


[Company Name] [Company Address] [Date] [Employee Name] [Employee Address]


Dear [Insert name of employee],

In order to manage the financial difficulties resulting from Coronavirus (Covid-19), the business has unfortunately needed to take extraordinary measures. In order to avoid an immediate redundancy scenario this letter is to notify you that your position will now become one of a furloughed employee.

This means you cannot undertake work for us from the first date you have been furloughed, but you remain in employment

In short, a furlough is an involuntary, unpaid leave of absence from work for a specific period of time. This is a temporary measure and your furlough will commence on [insert date].

Under the government scheme this means that you will receive a maximum of 80% of your normal wage which is capped at £2,500 per month.

{Will the company make any additional top up payments to you [yes/no] [include detail where applicable]}

At the time of writing the length of the job retention scheme is until the end of May 2020. We will communicate with you on whether the scheme is to be extended or what will happen after this date, in due course.

Please sign below if you understand and agree to these changes to your current employment.

Please feel free to discuss with me should you have any further questions.

Yours sincerely

[your signature]

[insert Director name]

I understand to avoid redundancy I agree to become a furloughed employee from the date set out above.

Signed [employee signature]………………………………… Date…………………………….

Download Furlough Letter To Employee in Word

The template is an example only but letters must contain the date the furlough will commence and must be signed by the employee

Rita Leat, Chief Executive

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