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COVID-19 Furlough Letter

A COVID-19 Furlough Letter helps employers notify staff of a temporary, unpaid leave caused by the pandemic or similar health-related shutdowns. Use this free, ready-to-edit template to explain the furlough dates, pay, benefits, and return-to-work plans clearly and respectfully. Simply fill in the details, download, and e-sign it online in minutes.

What Is a COVID-19 Furlough Letter and Why Do You Need One?

A COVID-19 Furlough Letter is a formal notice telling an employee they are being placed on temporary unpaid leave because of a pandemic-related slowdown or closure. Unlike a layoff, a furlough means the employee still has a job and is expected to return. The letter usually explains the start date, expected length, pay status, benefits, and how the company will stay in touch. A clear letter reduces worry, answers key questions early, and gives employees the paperwork they may need for unemployment benefits.

Communicate Difficult News Clearly and With Care

Writing a furlough letter during a crisis can be stressful, and unclear wording can leave employees confused or worried about their future. Leaving out details like benefit coverage, return dates, or rules about working during leave can lead to legal and pay problems. A ready-made COVID-19 Furlough Letter Template already includes every key section in a clear, caring, and professional tone. You just add your company and employee details, so the message is consistent, accurate, and easy to understand.

Useful for Small Businesses, Restaurants, Retail, and HR Teams

This template is helpful for small business owners who need to reduce costs during a temporary closure or slowdown. Restaurants, hotels, gyms, salons, and retail stores often rely on furloughs when health rules limit their operations. HR managers and payroll teams can use it to send consistent notices to many employees at once. It also works for schools, nonprofits, travel companies, and event businesses facing sudden shutdowns. Employers can adapt it for other temporary closures, such as outbreaks or emergencies.

How to Write and Send a Furlough Letter Step by Step

Start by adding your company name, the date, and the employee's full name and job title. Explain that they're being furloughed due to COVID-19 and that this is a temporary leave, not a termination. Add the start date and the expected return date, or say it will be reviewed. Explain pay status, health benefits, and any paid time off rules. Make clear they shouldn't do any work during the furlough. Finally, share unemployment resources and a contact person, sign the letter, and keep a copy.

How to Use Agreed Templates

Start With the Template

Open the Product Agreement Template in your Agreed workspace and begin with a ready-to-use agreement structure.

Customize Agreement Details

Add or edit product details, responsibilities, pricing, deliverables, timelines, and other terms to match your agreement needs.

Review, Sign & Manage

Send the agreement for review and approval, collect signatures, and manage the completed agreement securely in Agreed.

Frequently Asked Questions.

Everything you need to know about Agreed. Can't find what you're looking for?

A furlough is a temporary, unpaid leave where the employee keeps their job and is expected to return. A layoff ends employment, though the employer may rehire the person later.

Yes, in most U.S. states, furloughed employees can apply for unemployment benefits since they aren't earning wages. Eligibility rules vary by state, so employees should check with their state unemployment office.

Many employers continue health benefits during a furlough, but it depends on the company's insurance plan. The furlough letter should clearly state whether benefits continue and who pays the premiums.

No, furloughed employees shouldn't do any work, including checking emails. For salaried exempt employees in the U.S., doing any work in a week may require the employer to pay the full weekly salary.

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