Dear , 

RE: Coronavirus Job Retention Scheme and Furlough

I am writing to confirm the following situation now facing (the Company).

The Government’s policies on managing the Coronavirus pandemic, in particular the requirement for people to stay at home, has had a very serious impact on our temporary assignment across most sectors we supply. Where feasible and permitted by IT security policies we know our clients are trying to arrange for contractors on assignment to work remotely if work sites are closed. 

However, this is not always practicable. The Government has stated that agency workers are eligible to be furloughed under the Government’s Coronavirus Job Retention Scheme (CJRS), as an alternative to termination of a contract. Unfortunately, there is no certainty about when the Coronavirus crisis will end and the state of the economy once the Coronavirus pandemic is under control.

“Furlough” will allow us to obtain a reimbursement of basic salary paid whilst on “furlough” of 80% of basic salary (up to a maximum cap per worker of £2,500 pcm). Furlough means a temporary suspension of engagement, a leave of absence for a specified period of time. The reimbursement does not include any pay element in respect of bonus or commission.

While on furlough, an agency worker cannot be required to work.

Please read the Government guidance on the CJRS here.

You have been chosen to be placed on furlough commencing from because the Client’s work site is closed and is not practicable for you to work remotely. All assignment payments made to you during this period will be subject to the terms of the CJRS as issued from time to time by the Government and subject to the terms of variation of contract for services attached. You will receive your furlough payment to your normal bank account on normal payroll dates. This furlough payment is subject to deduction of PAYE tax and National Insurance Contributions. If you are enrolled in a pension scheme, we will continue to make employee and employer contributions to the scheme during Furlough Leave.

Please read through the contractual variation included and if you have questions arising from this letter or the variation please contact [email protected].

These are unprecedented times and the Government is seeking to address the urgency of the situation with the CJRS and other support initiatives for businesses and individuals. Rest assured these steps are only being taken by us because of the immediate significant financial impact on the business and the unprecedented nature of the circumstances.

Hoping you are keeping safe and well during this period.

Regards,

Contract variation

Agency Worker Name: 

Date:  

This is a variation to your contract for services.

1. We agree that from you will be on leave of absence (Furlough Leave) in accordance with the terms of the UK Government’s Coronavirus Job Retention Scheme (CJRS). This means your contract for services continues, but you are not required to work. We will pay you 80% of your basic pay or average of variable pay subject to a cap of £2,500 per month and, we will continue to make employer’s pension contributions if applicable to your salary during that time.

2. Your "normal monthly remuneration" for the purposes of this letter will be calculated as at each normal monthly payment date and will be the higher of:

• • your average monthly earnings calculated over the previous 12-month period, or the entirety of your engagement if you have worked for us for less than 12 months. Where you started working for us in February 2020, a pro-rata calculation will be done to work out your estimated monthly earnings.

3. Payment in clause 1 above does not include commission or any element of bonus as that is not reimbursed under the CJRS. You agree to waive any further entitlement to remuneration under your contract for services during Furlough Leave.

4. You continue to accrue statutory holiday leave during Furlough Leave.

5. Your contract for services continues to apply subject to this variation and you remain entitled to statutory worker rights.

6. You agree to defer the payment set out at clause 1 until HMRC’s online portal enabling us to claim your payment under the government’s Coronavirus Job Retention Scheme has opened, and we have had a reasonable opportunity to put in a claim and receive the funds. However, if we decide to cancel your Furlough Leave and ask you back to work before you have been on Furlough Leave for three weeks, we will pay you the monies otherwise due under this variation immediately.

7. Your Furlough Leave will end on the earliest of the CJRS ending, either by you or us ceasing to be eligible for the CJRS, or by us cancelling Furlough Leave and you returning to work or by immediate termination of your contract for services with us.

8. During your Furlough Leave, you may not work for us or any other party in the supply chain of your assignment. If you work for a third-party during Furlough Leave, you are liable to repay any sums we have paid you under the CJRS if we become liable to repay it to the Government because of this work. You authorise us to deduct such sums from future salary or claim as a debt. You may volunteer for unpaid work.

9. When your Furlough Leave ends, while we will endeavour to provide you with work, in the event of insufficient work being available we may need to terminate your contract for services.

10. This variation document is notice to you that you have been furloughed.

11. This contractual variation is intended to apply the rules of the CJRS to your contract for services. To the extent that this contractual variation is inconsistent with the rules of the CJRS then this variation shall be deemed by the parties to be varied so as to be consistent with the rules of the CJRS.

12. We have communicated with you the reasons for putting you on Furlough Leave due to the unprecedented nature of the Coronavirus outbreak and, this contractual variation is deemed as accepted by you by the commencement of Furlough Leave.

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Signed by Debbie McDermott
Signed On: April 22, 2020

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Document name: Furlough letter & contract variation

Unique Document ID: cd985b905be264e6a11b8d76811e6d6cd07cc4d1

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Timestamp	Audit
April 22, 2020 11:53 am BST	Furlough letter & contract variation Uploaded by Debbie McDermott - [email protected] IP 81.141.59.39
April 22, 2020 11:57 am BST	Staffing Furlough - [email protected] added by Debbie McDermott - [email protected] as a CC'd Recipient Ip: 81.141.59.39
April 22, 2020 11:59 am BST	Staffing Furlough - [email protected] added by Debbie McDermott - [email protected] as a CC'd Recipient Ip: 81.141.59.39

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