28 March 2020



Dear Rory



Private and Confidential

Coronavirus: furlough leave – variation to contract of employment



We are finding ourselves in unprecedented times due to the worldwide coronavirus pandemic.  You will no doubt be aware that many UK businesses are facing an uncertain future and unfortunately, following the announcements made by the Government during the last week, we have seen our sales fall by almost 50% already. After Thursdays more stringent measures we anticipate that they will fall further this week to around 80% of a normal level of sales. Cash flow is critical at the moment and we have to do as much as possible to minimise costs and payments leaving the business and we must now take steps to protect itself to maximise the on-going job security of our colleagues.

For the time being Nisbets will remain open for business albeit we will follow government guidelines and have closed our network of retail stores from Wednesday. We have also ceased our Jantex operation out of those stores.

In addition to closing our retail stores the Executive leadership team (ELT) have been working through a plan to materially reduce our headcount costs in the short term. Each ELT member has developed a list for their function of critical colleagues required to keep the business functioning in the coming 3 weeks. We will need to review the impact on sales on a weekly basis and may need to develop and amend these plans further in the coming days and weeks.

As of 24 March 2020 we started implementing a cessation of work for certain nonessential positions and, on 25 March 2020, we started a collective consultation process with colleague representatives across the business to outline our plans and options over the next couple of months.  We will review these arrangements regularly, taking into account the changing situation in regards to both Business needs and Government guidance.

This letter is to confirm that your position is included in this cessation of work and as such, you are being placed on a leave of absence effective from 24-03-2020 until 31 March 2020.  You were paid full pay for March 2020 in the normal pay run received on 27 March 2020.

In normal circumstances the significant reduction in sales and closure off the Retail stores and Jantex operations would amount to a lay-off situation.  Under the lay-off arrangements set out in your contract you would be entitled to a guarantee payment (currently £145 per week) and no further pay for the lay-off period.  However, I am pleased to say that the Government Job Retention scheme (the “Scheme”) announced on Friday 20th March now means that we have the alternative option of putting you on ‘furlough leave’ (a temporary period of time during which your contract of employment is varied and you are not required to undertake any work) as of 25-03-2020.



If you are shielding in line with public health guidance because you are considered to be extremely vulnerable please forward the NHS notification confirming your vulnerability status to COVID19info@nisbets.co.uk immediately, as this will enable you to be placed on furlough leave in line with government guidelines for your situation.



Should you accept this offer to take Furlough Leave, your contract of employment with us will continue but will be varied on the following terms.



1.     During the period of Furlough Leave you will not be required to undertake any work and, after 31 March 2020, will not be entitled to your full remuneration.



    Subject to us qualifying for a grant (in full or in part) for your wage costs under the Scheme. During your Furlough Leave we will pay you 80% of your normal wages per month [up to a maximum of £2,500 per month in respect of the time that you are not working due to being on Furlough Leave (‘Furlough Leave Pay’).



3.     Your Furlough Leave will commence on 25-03-2020. Unless you are currently off sick or are unable to work because you are self-isolating, in which case your furlough will commence on your return to work in line with the government guidelines for your situation.



4.     Your Furlough Leave will end on the earliest of the following events:



a.     the Scheme ending

b.     you or us ceasing to qualify under the Scheme

c.     notice from us ending your Furlough Leave

d.     the termination of your employment in accordance with your normal terms



5.     For the duration of your Furlough Leave only, you must not undertake any work for us, or for any other organisation or on your own account.



6.     Apart from the requirement for you attend work and for us to pay you your normal remuneration, all the terms and conditions of your employment remain in force during Furlough Leave, including any benefits in kind such as life insurance; your annual leave entitlement will continue to accrue; and pension benefits shall continue.



7.     If you breach the terms of the Scheme or the terms agreed with us during your Furlough Leave, you must tell us as soon as possible.  If you breach of the terms of the Scheme or your Furlough Leave, we reserve the right to deduct from your wages any monies which have been wrongly paid to you under the Scheme and / or which HMRC require us to repay to them.  You agree to us deducting the sums under this clause from your final salary or any other outstanding payments due to you



8.     On the termination of your Furlough Leave, you will be required to return to work for us and you will be paid your wages in the normal way, under the terms of your employment contract as they existed at the date that your Furlough Leave commenced, or in accordance with such new terms as are agreed between us on your return to work following Furlough Leave.



9.     This offer is issued to you before we have full guidance from the government on the operation of the Scheme and before any regulations governing the Scheme have been published. We therefore reserve the right to make reasonable changes to the arrangements for, and the terms of, your Furlough Leave and pay during Furlough Leave, in accordance with any guidance, regulation or legislation which is issued in relation to the Scheme.



10.  In signing this letter, you agree that your contract of employment is varied in consideration of your continued employment with us.



To confirm this change to your contract of employment with effect from 25-03-2020, please would you sign this letter, and the enclosed copy, and return the copy to me on or before 30 March 2020.



We will communicate with you regularly during this period. If your personal phone number, personal email or mailing address has changed recently, please provide your current contact information to human resources immediately. Please feel free to contact human resources at covid19info@nisbets.co.uk with any questions.



I would like to thank you for your understanding in these difficult times and I fully appreciate the impact upon all of our colleagues.  I would like to remind you of the employee assistance programme on 0117 934 2121 quoting Policy No: TT8/3234312.



Yours Sincerely

Deborah Preston

Global HR Director

Nisbets PLC