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Document updated/added on 07.11.2020

Topic: Changing terms & conditions and TUPE

Letter designating employee as flexibly furloughed
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Letter designating employee as flexibly furloughed

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 furlough 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 flexibly furloughed 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 flexibly furloughed 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 in the normal way for the hours they actually work and then under the extended CJRS, which is open until 30 April 2021, they will continue to receive 80% of their usual pay, subject to a gross monthly cap of £2,500, for their furloughed hours. However, the employee’s wages for their furloughed hours are being paid by the government by way of a CJRS grant. You only need to pay employers’ NI and the minimum auto-enrolment employer pension contribution on that reduced subsidised wage.

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.

 

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