The Job Retention Bonus

August 7, 2020

You may have seen on the news, or heard through the grapevine, that there is a new Job Retention Bonus planned to be given to companies who keep their previously furloughed staff on until January 2021. But what are the details? Well look no further! Here is the key information that you need to know.

What is it?

The government is introducing a new Job Retention Bonus to support employers further and encourage them to keep employees on after the end of the Coronavirus Job Retention Scheme. The bonus is a payment of £1000 to employers for each employee who has previously been on furlough and who has remained employed through to 31st January 2021. You will be able ot claim it after the PAYE for January has been filed, and you will receive the payment in February.

Who’s eligible?

All employers across all different sectors are eligible.
The employee must have previously been put on furlough and the company must have claimed the CJRS payments. If you have incorrectly made a claim, the bonus will not be payable.
The employee must earn a monthly average of £520 between 1st November 2020 and 31st January 2021. That works out at around £6,240 as an annual salary.
Employers who have complied with the obligations to pay and file PAYE on time and accurately under the RTI reporting system
Companies who are not under enquiry for any fraudulent claims or inflation of the CJRS.
Employees need to have been continuously employed from the time of the last CJRS claim until at least 31 January 2021
Employees who are not serving a contractual or statutory notice period that started before 1 February 2021
Employees who were on statutory parental leave, returned after 10 June 2020 and were claimed for under the scheme
Employees who are on a FTC and were claimed for under the CJRS.

TUPE & Previous Businesses

Even new employers may be eligible if employees were TUPE’d over. HMRC writes:

“A new employer may be eligible to claim the Job Retention Bonus in respect of employees of a previous business which were transferred to the new employer if either TUPE applies, or the PAYE business succession rules apply to the change in ownership. A new employer may also be eligible to claim the Job Retention Bonus in respect of the employees associated with a transfer of business from the liquidator of a company in compulsory liquidation where TUPE would have applied were it not for the company being in compulsory liquidation.

To claim the Job Retention Bonus under these circumstances the transferred employees must have been furloughed and successfully claimed for under the scheme by their new employer. An employer will not be eligible for the Job Retention Bonus in respect of any employee transferred under TUPE or under the business succession rules after 31 October 2020.”

For any other questions or advice on this topic, as always, lots more information can be found on the GOV.UK website.