Furlough agreement letter

If you are considering furloughing some or all your staff, the government Employers' Coronavirus Job Retention Scheme (‘CJRS’) guidance states that employers should discuss the proposal with staff and make changes to the employment contract by agreement.

It provides that employers must confirm in writing where an employee is furloughed, and that confirmation must be based on consent (although it does not require the employee to agree to furlough in writing, stating that the employee "does not have to provide a written response").

However, the Treasury direction makes it clear that an employee will not be considered to be furloughed by HMRC for the purposes of the CJRS unless the employee has agreed in writing to cease all work in relation to their employment. The employee's written agreement to be furloughed can be given in an electronic format such as an email (paragraph 6.7, Treasury direction).

The Advisory, Conciliation and Arbitration Service, also known as ACAS, has put together a template for an agreement to temporarily send home an employee because there’s no work ('furlough').

It is free to download and use. Click here… https://www.acas.org.uk/furlough-letter-template

Contact hina@partnerslaw.co.uk if you would like to discuss furloughing staff, or if you have issues in the workplace you would like to discuss formally or informally.