Furloughing arrangement letter for small businesses

Need to put your employee(s) on furlough? This furloughing arrangement letter (for small businesses) gives you the structure and detail to make sure everything is clear, for you and your team.

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• A guide to small business grants in the UK and how to apply
• Coronavirus jargon buster for business: which terms are you Googling?

Why use a Farillio template?

We’ve partnered with legal support specialists Farillio to bring you a selection of easy-to-use legal and business templates. Each template has been designed specifically for the use of small businesses, who need simple and straightforward legal and business support. Get three months of free access to their full suite of legal and business resources, guides and videos, and tap in to their network of legal experts by visiting the Farillio website.

Furloughing arrangement templates: do I need one?

Because it’s small business-specific, this furloughing arrangement template helps keep your communications relevant, covering areas that might be a concern for smaller companies. There are a few reasons why you may wish to use one. For example, to:

• communicate the situation formally, or at least in writing, with your employee(s)
• reassure your employees that you’re acting in-line with government guidelines
• clarify any discussions you may already have had
• explain how the government’s emergency Coronavirus Job Retention Scheme (CJRS) applies to your situation
• set out what being furloughed means, and any important or relevant dates
• explain your furloughing steps and what will happen next
• confirm that you’ve discussed what’s happening with any relevant trade unions
• give clear opportunities for your employees to ask questions
• direct your employees to official government guidance and support

Can’t I just write to employees in my own words?

How you communicate with your employees is very personal. You can of course have an upfront and open conversation if it feels right, and employees will almost always feel better about the situation if you’re behaving in a human, compassionate and approachable way.

This template assumes that you’ve spoken to your employees first about their furloughing, before you give them written confirmation.

But putting your formal furloughing arrangements on paper, using a specialist template, gives you and your employee confidence that you’re following official guidelines. It also ensures as much clarity as possible.

How should I handle furloughing conversations?

Again, clarity is key. Your employees won’t appreciate vagueness right now, even if it’s kindly meant. So prepare for each conversation as thoroughly as possible.

As well as this, make sure you’re staying in regular contact with your employees before and during their furloughing period, and be as helpful as you can.

When should I use the template?

You can read up on the process in our coronavirus: how to furlough someone (including company directors) guide.

Remember, furloughing must be confirmed in writing by employers for the government grant to be payable.

What do I need to get started?

To use the furloughing arrangement letter template, you’ll need a few key details to hand. Get ready with this quick list:

• your employee’s full name and address
• their furlough dates (furloughs must last at least three weeks, and can be until further notice)
• their contracted dates with your business
• the pay arrangements you’ve made
• details around their right to work for someone else, whilst furloughed
• the plan for their employment with you (e.g how furloughing might end or be extended)
• who they should speak to, if they have any questions
• confirmation of any trade union agreements, if applicable
• where they should return their signed furloughing arrangement letter