The government is introducing a new Job Retention Bonus of £1,000 per employee to provide additional support to employers who keep on their furloughed employees in meaningful employment after the Coronavirus Job Retention Scheme ends.
The Coronavirus Job Retention Scheme (CJRS) will wind down flexibly and gradually, supporting businesses until 31 October 2020.
The government is introducing a new Job Retention Bonus to reward, incentivise and to provide additional support to employers who keep on their furloughed employees in meaningful employment after the government’s Coronavirus Job Retention Scheme ends on 31 October 2020.
The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021.
Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
Who is eligible?
In order to be eligible to qualify for this bonus, employees must:
earn above £520 per month on average between November 2020 and January 2021
have received some earnings in each of the three calendar months that have been paid and reported to HMRC via Real Time Information (RTI)
have been furloughed and had a Coronavirus Job Retention Scheme claim submitted for them that meets all relevant eligibility criteria for the CJRS;
have been continuously employed by the relevant employer from the time of the employer’s most recent claim for that employee until at least 31 January 2021;
have up to date RTI records for the period to the end of January 2021; and
not be serving a contractual or statutory notice period that started before 1 February 2021 from the employer making a claim for Job Retention Bonus.
Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including office holders, company directors and agency workers, including those employed by umbrella companies. The above criteria must be met regardless of the frequency of the employee’s pay periods, their hours worked and rate of pay.
If you have any questions about any of the above, please get in touch.