Dean Garrity

4 April 2020

Dear Dean

COVID-19 furlough leave: proposed changes to your employment contract

Following our announcement on 30 March 2020, you will be aware that due to the ongoing COVID-19 pandemic
and the current restrictions which the government has imposed, schuh is unable to operate the business as
normal. For the foreseeable future we are operating on an emergency footing with a substantially reduced staff
with all store operations having ceased and the website being closed for over a week while additional safety
measures could be introduced.

On 20 March 2020, the government announced the Coronavirus Job Retention Scheme (CJRS) as part of its
response to the COVID-19 pandemic. Under the scheme, any employer can obtain a grant to cover 80% of the
salary of employees and PAYE workers, up to a total of £2,500 per month for each retained employee, plus the
associated employer's National Insurance contributions (NICs) and minimum automatic enrolment employer
pension contributions on the reduced salary. The scheme will cover the cost of wages backdated to 1 March
2020 (for those not working from that date, provided that they were on the payroll on 28 February 2020), and will
be open initially for three months unless the government extends it.

We are therefore proposing to implement this scheme as an alternative to having to consider making
redundancies in the light of the impact of the pandemic on our business. This will mean certain changes to your
terms of employment, the effect of which will be to place you on furlough leave for an initial period of up to 31
May 2020, although this period may be extended or curtailed as the need arises.

We have set out below the proposed changes to your employment contract (Contract):

 With effect from 22-Mar-20 , for an initial period of up to 31 May 2020 you will remain employed by
schuh but will be placed on a period of temporary leave (Furlough Leave).
 During Furlough Leave we shall be under no obligation to provide any work to you and may revoke any
powers you hold on our behalf, and you agree not to attend your usual workplace or carry out any work
on our behalf. You should note that it is a condition of our eligibility for the CJRS that furloughed
employees do not provide any services or generate any revenue for the employer.

 During the period to 18 April 2020 we had already indicated that you would be paid in full - this will be
based on the higher of either your pay for the same 4 week period last year or the average 4 weeks'
earnings of the last 12 months (for those with variable hours). If you are salaried and have fixed hours,
this will be based on your gross salary as of 28 February 2020.
  For any remaining period of Furlough Leave, in lieu of your normal pay, your pay shall be reduced to:

 for full and part-time salaried employees: 80% of your basic salary as at 28 February 2020,
excluding any fees, commission and bonuses or
 for those whose pay does vary: 80% of the higher of (a) your pay for the same 4 week period
last year or (b) the average 4 weeks' earnings of the last 12 months over the 2019-20 tax year)
in either case excluding from such calculation any fees, commission and bonuses .
 Tax, National Insurance contributions and any other statutory deductions will be deducted in
the usual way, and your salary will be payable in arrears on the normal payment date directly
into your bank or building society account.

 If you are opted in to automatic (pension) enrolment, your minimum employer pension contributions will
be paid in the normal way. You will continue to receive all other contractual benefits in the usual way
and subject to the terms of any benefit arrangement.
 You shall ensure that the ‘your schuh’ employee portal has up-to-date contact details for you so that you
may be contacted during Furlough Leave.
 Your period of Furlough Leave will end when any of the following events occur:

 you or schuh cease to be eligible for funding under the CJRS;

 we give you at least one day's notice that your employment will resume on the terms and
conditions which applied immediately before the Furlough Leave commenced, or on such
terms and conditions as further amended to take account of the applicable circumstances;
or
 your employment is terminated for any reason.

 You will continue to accrue holiday in the normal way while on Furlough Leave, but you may not take
any holiday during the Furlough Leave pending clarification of this aspect of the CJRS. If the position
changes and if we require you to take annual leave, we will notify you of this.
 Where the modifications to the holiday provisions of your Contract mean that it is not reasonably
practicable for you to take all of your accrued holiday in the current leave year, you may take all untaken
accrued holiday in the two leave years immediately following the leave year in respect of which it was
due.

For the avoidance of doubt, while you are formally placed on Furlough Leave from the date of the agreed change,
where we have been unable to provide you with work from an earlier date due to the COVID-19 pandemic, our
intention would be to backdate any claim under the CJRS in respect also of that prior period in which we were
unable to provide work to you.

The remaining terms of your Contract shall be unaffected by these changes. If you wish to consider working
for another employer or on your own account (except in respect of any existing hours you already work
under a second job but including any increase to those existing hours), you must tell us. This may impact
upon our entitlement to make a claim for your pay under the CJRS, and therefore our ability to pay you. If a claim
that we make for you under the CJRS is rejected (or we require to repay any monies received under the Scheme)
because you have undertaken other work, you agree that any payment made to you by us during Furlough Leave
(in excess of our recovery from HMRC) will be repaid by you to us. You agree that this may be deducted from
any payments otherwise due to you including future pay.
You may carry out unpaid voluntary work and may undertake training, provided that it does not involve the
generation of any revenue for schuh and that it meets any criteria set out in the CJRS.

If you agree to these changes, please indicate your acceptance by signing this letter by SignNow. The changes
shall be immediately effective from the date of your signature. You will be sent an electronic copy of this signed
letter once you have completed the SignNow signing process.

If you have any questions, please contact hr@schuh.co.uk.

Yours sincerely,

Gayle Lynch, Head of HR

For and on behalf of schuh Limited

I agree that my Contract shall be varied by the revised terms set out in this letter with immediate effect.

Dean Garrity

04/05/2020