COVID-19 Furlough Letter

The COVID-19 Furlough Letter is a letter employers use to grant an employee temporary leave of absence for a short specified period or a long unspecified period due to the coronavirus pandemic. Furlough or a compulsory leave of absence is mandatory, and the affected persons remain employees of the organization. During the furlough period, the employee may not be entitled to any remuneration (except insurance benefits) and is not required to render any services to the employer. However, as an employee of the organization, they remain bound by terms of their Employment Contract except they resign or the employer terminates their employment.

Unfortunately, many employers affected by the coronavirus pandemic will have to either layoff or furlough their employees. A furlough may be a more desirable option for both employers and employees because even though employees may not receive remuneration during the period of absence, it is easier for them to resume work at the end of the furlough, and employers do not have to go through the rigorous process of recruiting new employees. However, if an employer chooses to terminate an employee's contract, the Termination of Contract Notice should be used instead.

How to use this document

This document can be used by an employer whose business has been affected by the global pandemic. For example, employers that want to retain the services of their employees, but: are unable to pay salaries due to result of the economic hardship; employers that do not require the services of their employee for a specific period due to the lock-down or compulsory shut-down of businesses; and employers who are generally affected by the economic situation of the country.

After completing the document, it should be printed in at least two copies and signed by the employer. The employer should send the signed copy of the document to the employee to whom the letter is being addressed.

Note that this document may be sent either by letter or email. The employer should keep one copy of this document for record purposes.

Applicable law

The Labour Act of 2004 applies to employment matters in Nigeria.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.