Further to our last email correspondence and your subsequent confirmation, I am writing to confirm that we will now place you ‘on furlough’.
This means that you will still be employed by us, but you will not do any work for us during the furlough period. We can then use the Government’s Coronavirus Job Retention Scheme, which covers 80% of your normal pay.
By placing staff on furlough, we hope to keep the business going and avoid redundancies if possible until matters get back to normal.
By agreeing to be placed on furlough, your contract of employment will be temporarily varied. You will need to sign to confirm your agreement to the variation in the section at the end of this letter headed “confirmation of agreement” and return a copy to us.
Unless we agree otherwise, and unless your contract of employment is terminated by you or by us before that date, the temporary variation will come to an end on the date when you return to normal work.
Your period of furlough will begin on 1st April 2020, which will initially last for three weeks and may last up to three months. After three weeks, we will keep the situation under review. The three months may need to be extended and, if so, we will discuss this with you.
As soon as we think we can get you back to work as normal, we will give you notice and will expect you to return to work immediately unless agreed otherwise. You therefore need to be in a position to return to work during the furlough period.
To summarise, this is how furlough will work:
1. Whilst on furlough you will be paid 100% of your average earnings. This will be based on your average earnings for the last three months, excluding any salon performance, retail, and / or treatment bonuses
This amount is subject to deductions for tax, national insurance, and employee pension contributions in the usual way.
2. In addition to your furlough pay, we will pay employer national insurance contributions and minimum automatic enrolment employer pension contributions, where applicable, on your furlough pay.
3. Your contract of employment will continue with [MIAJAC Limited / ASHFIN Limited T/A Zappas], but the terms of the Job Retention Scheme require that you do not do any work for us during the furlough period.
4. In order for us to provide you with furlough pay at 100% of your average earnings, you will be required to take paid holiday for your normal working hours from 24th March 2020 through 31st March 2020 inclusive, and this will be paid in the March payroll.
5. While your statutory rights are unaffected by this variation to your contract of employment, your contractual entitlements to pay and other financial benefits during the furlough period are limited to that set out in 1 and 2 above.
In order to formalise this temporary variation, please sign and date below and return a signed copy of the letter to myself by Wednesday 22nd April 2020 and keep a copy for your records. This will enable us to apply for the Government’s Coronavirus Job Retention Scheme, so that we can make the first furlough payment to you on 30th April 2020.
If you have any questions about your entitlement to annual leave or any other of your rights or entitlements during the period of furlough, then please don’t hesitate to contact me.
Mr Stephen J Connell
Confirmation of agreement
We agree that the contract of employment between [name of employee] and [MIAJAC Limited / ASHFIN Limited T/A Zappas] will be temporarily varied and that [name of employee] will be placed on furlough on the terms set out in this letter.
Signed: _________________ Date: 17th April 2020 Mr Stephen J Connell
Signed: _________________ Date: _______________ [name of employee]