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Example letter laying staff off under the CJRS

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If you have obtained your employees consent to vary their employment terms, allowing you to furlough them under the Coronavirus Job Retention Scheme, when the time is right, you will then need to write to any employee who you wish to furlough – the letter template which we will be using is set out below.

The information and comments in this article are for guidance purposes only. Mackenzies Accountants Ltd and the author accept no responsibility or liability whatsoever for any action taken or not taken in relation to these comments and recommend that appropriate professional advice be taken having regard to your own particular circumstances.

Mackenzies Chartered Accountants
1 Langley Court, Newport, PO30 1LA

Telephone 01983 528139
Email mark@mkchartered.co.uk

Dear Employee,

Thank you for confirming your agreement to the proposed voluntary changes to the terms of your employment.

You will be aware that as a direct result of the Coronavirus crisis the business is now short of work. As a result, I confirm that as an alternative to making your position redundant, we have decided that with effect from tomorrow morning you will be laid-off or in other words classified as a furloughed employee.

You should not come to work tomorrow and should remain at home following the Government’s guidance on social distancing and isolation as appropriate to your individual circumstances. You will carry out no further work for the company whilst you are furloughed.

Under the Government scheme you must be furloughed for at least 3 weeks.

I may need to contact you occasionally if I have any questions relating to urgent matters or if I need information about a any task on which you were working on prior to being furloughed, so please update me if your contact details change.

During the furloughed period you will paid in accordance with your new voluntarily agreed employment conditions which will be the maximum net pay supported by the grant receivable by the company under the Coronavirus Job Retention Scheme (CJRS). As a minimum you will be entitled to statutory lay-off pay.

Under the Government scheme you will be paid 80% of your normal salary up to a maximum of £2,500 per month. Your normal salary excludes any bonuses and commission.

I will contact you once the crisis is over to arrange for your return to work.

Although during the furloughed period you must not work for us, you may work elsewhere but before doing so please obtain our written permission, which will not be unreasonable withheld.

Thank you for your understanding, I hope that and your family remain safe and healthy during this difficult period and I look forward to welcoming you back to work in the not too distant future.

Your sincerely,
John Manager
Director of XYZ Limited

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