Employees should be officially notified of any variation to their contract. We therefore recommend all employees placed on Furlough receive a letter similar to that below. Please note this is an example letter and you should review it with your HR Specialist or Lawyer.

[Send to the employee’s address or email. Note you should discuss and record employee agreement to be Furloughed before you send this letter].

Dear [Employee name],

NI NUMBER AND / OR PAYROLL NUMBER

The purpose of this letter is to formally notify you that your position as [INSERT] on the [XXX DEPARTMENT] is being closed temporarily due to the downturn in business as a result of the COVID-19 Pandemic.

Your last official day of work will be [1 March / 1 April INSERT DAY]. Your salary and benefits will continue at their current level [or 80% insert as applicable] during the Furlough period. Please understand this action in no way reflects dissatisfaction with your job performance.

The length of this furlough is [insert future date or unknown currently].

We will provide regular information as the current Pandemic unfolds and when we return to normal working routines.

A Furlough is a short-term paid temporary leave of absence at full / 80% [AS APPLICABLE] of current salary. The furlough period and provisions may be changed or terminated at the sole discretion of the Company, and does not create any employment contract, express or implied.

During the furlough period, your pension and other benefits will continue [IF APPLICABLE].

Thank you for your contributions to the business and if I can help in any way, please contact me.

Yours Sincerely,

[insert signature]


Paul Johnston

I'm Paul Johnston, owner of Bourne Accountancy, based in Caterham Surrey, offering a broad range of accountancy and specialist tax services to businesses and personal clients. My philosophy is always to do my utmost to provide friendly, courteous and efficient service.

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