WHAT CAN YOU EXPECT FROM THE JOB RETENTION BONUS?Nov 05 2020
In the summer economic update, Chancellor Rishi Sunak announced a new incentive for employers known as the Job Retention Bonus. This incentive is intended to encourage businesses to bring furloughed employees back to work at the end of the furlough period that has subsequently been extended until December in England.
There has been further information revealed about the Job Retention Bonus such as eligibility criteria, how you could claim and when. If you are an employer who furloughed employees through the Coronavirus Job Retention Scheme (CJRS), you are eligible to claim the Job Retention Bonus. This is a taxable bonus of £1,000 per eligible employee; there is no limit on the number of furloughed employees you can claim for as long as they meet the following criteria:
- The employee was furloughed through the original Coronavirus Job Retention Scheme for any amount of time up until the scheme first ended on the 31st of October 2020.
- The employee must return to continuous employment and remain employed until the 31st of January.
- The employee needs to earn a minimum average salary of £520 per month between November and January, totalling to at least £1,560 across the three-month period.
- The employer cannot claim if the employee is serving a notice period starting before the 1st of February 2021.
It has also been revealed that limited companies can claim for company directors who may have been on furlough, so long as they’re employees of the company and meet the eligibility criteria.
The extension of furlough into November will affect the bonus as there will not be qualifying salary for many employees in November now. We are awaiting confirmation of any changes that may be made to the scheme.
These payments were expected to begin in February 2021 after employers have filed PAYE for January 2021. To find out more about the Job Retention Bonus and what you need to do to claim it, please refer to the Government website. If you require further guidance, please get in touch, and a member of the MMG team will be happy to help.