COVID-19: How to Place an Employee on Furlough Leave

With the biggest question on everyone’s mind being Furlough, we wanted to provide some insight into what it means and how Employers can make it official?

To reiterate, Furlough leave is the Government’s scheme to repay 80% of your employees’ wages up to a gross salary of £37,500 (i.e. £2,500 a month).

The scheme put in place by the Government is known as the Coronavirus Job Retention Scheme, further details of this can be found on our website, but what everyone really wants to know is how to place an employee on furlough leave, and the contract or paperwork that you’ll need in order to make that official.

  • Talk to them and explain that this was not an easy decision, but you must do this to avoid having to terminate them, or to protect the solvency of the company. Simply saying “You’re furloughed” is not good enough.
  • Send a letter formalising what was discussed and confirm the agreement made. We have developed a template to help you with this.

Download Furlough Agreement Letter Template

  • Update the employee’s contract to add in these changes. This is important to remain in line with Employment law.

We hope this guidance provides you with some further insight on what to do at this challenging time. As always, please get in touch if you have any questions or require any further advice. We will do our best to help.

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