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RC No.: ________
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Dear ________,
RE: NOTICE OF TEMPORARY SUSPENSION OF EMPLOYMENT (FURLOUGH)
We refer to your contract of employment dated ________ and to your engagement with ________ ("the Company") in the position of ________.
§1. Purpose of this Notice
1.1 This letter serves as formal notice that, owing to operational and economic circumstances presently beyond the Company's control, your employment is being temporarily suspended ("furloughed") for the period stated in §2 below.
1.2 This measure is in no way connected with, or attributable to, your conduct, capacity or performance. It is a temporary cost-management measure adopted to preserve the continued viability of the Company's business and, where possible, to safeguard the employment of its workforce.
§2. Effective Period
2.1 The furlough shall take effect on ________ and shall, unless extended or shortened by written notice from the Company, end on ________.
2.2 The Company reserves the right to extend, shorten or terminate the furlough period by written notice to you, having regard to prevailing business conditions.
§3. Continuation of Employment Relationship
3.1 The furlough is a temporary measure only. Your contract of employment is not terminated and you remain an employee of the Company throughout the furlough period. Your period of continuous service shall not be broken by reason of the furlough.
3.2 During the furlough period you shall not be required to attend at the Company's premises or to perform any duties of your office, save where otherwise agreed in writing.
§4. Remuneration and Benefits During Furlough
4.1 During the furlough period, your entitlement to salary, allowances, bonuses and other benefits shall be as follows: ________.
4.2 Where any statutory or contractual deductions, pension contributions under the Pension Reform Act 2014, or contributions under the National Health Insurance Authority Act 2022 are affected by this arrangement, the Company shall comply with its obligations under the applicable laws and shall notify you accordingly.
4.3 Nothing in this letter shall operate to reduce any accrued entitlement that has vested in your favour as at the commencement of the furlough period.
§5. Your Continuing Obligations
5.1 Throughout the furlough period you shall continue to be bound by all the terms and conditions of your contract of employment and by all policies, codes and regulations of the Company that apply to you, including (without limitation) your obligations of confidentiality, non-disclosure, fidelity and good faith.
5.2 You shall not, during the furlough period, take up any employment, engagement or business that conflicts with the interests of the Company or that would be inconsistent with your obligations to the Company, without the prior written consent of the Company.
§6. Government and Other Assistance
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§7. Return to Work
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§8. Governing Law and Dispute Resolution
8.1 This arrangement and your contract of employment shall be governed by and construed in accordance with the Labour Act (Cap L1, Laws of the Federation of Nigeria 2004) and other applicable laws of the Federal Republic of Nigeria.
8.2 Any dispute arising out of or in connection with this notice shall, failing amicable resolution between the parties, be referred to the National Industrial Court of Nigeria sitting at ________.
§9. Enquiries
9.1 The Company will keep you informed of material developments affecting the Company and this arrangement. Should you require any further information, please contact ________ at ________.
The Company values your work and contribution, and we thank you for your understanding and cooperation during this difficult period. We look forward to welcoming you back upon the conclusion of the furlough period.
Yours faithfully,
For and on behalf of ________
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ACKNOWLEDGEMENT AND RECEIPT BY EMPLOYEE
I, ________, acknowledge receipt of this notice and confirm that I have read and understood its contents.
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Signature of Employee
Date: ________