Covid-19 – Furlough Workers Letter Template

26th March 2020 Nicky Cole
Corona Virus

In response to the COVID-19 (Coronavirus) pandemic, the UK government is offering to reimburse up to 80% of wages for employees who lose work due to shutdowns. Employers simply need to designate these employees as furloughed.

The reimbursement covers up to £2,500 monthly.

What does it mean to be furloughed?

In the UK, the government has instituted a policy in response to the COVID-19 pandemic, reimbursing employers who continue paying employees that cannot work due to the pandemic. These employees are designated as “furloughed.”

To access the scheme you will need to:

– designate affected employees as ‘furloughed workers’ and notify them of this change (please see template below) – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation;

–  Through the Coronavirus Job Retention Scheme, the HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.  Where applicable this can be backdated to 1 March and is initially open for 3 months, but will be extended if necessary;

– We understand employees are to be paid as normal through their existing payroll and the HMRC are working urgently to set up a system for reimbursement to employers (please keep checking the links below for further updates).  Once the system is set up, please submit information to HMRC about the employees that have been furloughed and their earnings through the new online portal;

If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.

For more information, please visit :

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees

UK COVID19 – Furlough Notice Template

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