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Introduction to this document

Letter designating employee as flexibly furloughed

To be eligible for a grant under the Coronavirus Job Retention Scheme (CJRS) where the employee returns to work part time, you must agree with them the flexible furloughing arrangement, confirm that agreement in writing and keep a record of this communication. Use our letter to confirm the agreement.

Formal notification

Once you’ve obtained an employee’s consent to flexible furlough (see our Letter Seeking Agreement to Flexible Furlough), you’ll then need to notify them in writing that they’ve been designated as a flexibly furloughed employee and you must keep copies of all your correspondence for five years. This is where our Letter Designating Employee as Flexibly Furloughed comes in. It simply cross-refers to your earlier letter and the employee’s signed consent form and then formally confirms that they’re now a flexibly furloughed employee from whatever date you originally proposed for them to commence temporary part-time working. This constitutes a temporary variation to their employment contract.

Amount of grant

You must pay the employee their full pay for the hours they actually work and then under the CJRS they will continue to receive 80% of their regular wages, subject to a gross monthly cap, for their furloughed hours. However, the CJRS grant is subject to the following forthcoming changes to employer contributions:

  • from 1 August 2020, the government will still pay 80% of wages up to a monthly cap of £2,500 for the hours the employee is on furlough, but you’ll need to pay employers’ NI and the minimum auto-enrolment employer pension contribution on that reduced subsidised wage
  • from 1 September 2020, the government will pay 70% of wages up to a monthly cap of £2,187.50 for the hours the employee is on furlough and you’ll need to pay 10% of wages to make up 80% total wages up to a monthly cap of £2,500 (plus employers’ NI and pension contribution)
  • from, 1 October 2020, the government will pay 60% of wages up to a monthly cap of £1,875 for the hours the employee is on furlough and you’ll need to pay 20% of wages to make up 80% total wages up to a monthly cap of £2,500 (plus employers’ NI and pension contribution).

The cap is calculated proportional to the hours an employee is furloughed, e.g. they’re entitled to 50% of the cap if they’re on furlough for half of their usual hours under a flexible furloughing arrangement.