Job Retention Bonus – Employer FAQs Answered

October 5, 2020

 

Further guidance has been published on the Government’s Job Retention Bonus; a scheme devised to support employers once the Coronavirus Job Retention Scheme (CJRS) comes to an end on 31 October 2020.

What is the Job Retention Bonus?

It is a £1,000 one-off taxable payment to the employer for each eligible employee that has been furloughed and kept continuously employed until 31 January 2021.

Who can claim?

All employers that have furloughed employees and made an eligible claim for those employees through the CJRS will be eligible to claim the bonus. Your employees must have been eligible for the CJRS grant in order for you to be eligible for the bonus.

When can I claim?

You will be able to claim the bonus between 15 February 2021 and 31 March 2021. The Government’s guidance is expected to be updated by the end of January 2021, with details on how to access the online claim service on www.gov.uk.

Which employees can I claim for?

You can claim for employees that:

  1. you made an eligible claim for under the CJRS, and

  2. remain employed as at 31 January 2021, and

  3. are not under contractual or statutory notice on 31 January 2021 and

  4. you have paid them at least one payment of taxable earnings in each tax month, and

  5. you have paid them enough to meet the bonus minimum income threshold (see below).

What is the Job Retention Bonus minimum income threshold?

In order to meet the minimum income threshold, an employee must have been paid at least £1,560 (gross) between 6 November 2020 and 5 February 2021 (“the relevant 3-month period”).

Do I need to pay the bonus to the employee?

No, you do not have to pay this money to your employee.

Can I claim for individuals who are not employees?

Yes, you can claim the bonus for individuals who are not employees such as office holders, company directors or agency workers. However, you must have claimed a grant for such workers under the CJRS and the other Job Retention Bonus eligibility criteria must be met.

Can I still claim the bonus if I make a claim for that employee under the new Job Support Scheme?

Yes, you can still claim the bonus if you will be making a claim for your employee through the Job Support Scheme in November 2020. For more details on the Job Support Scheme, click here.

For more information on the Job Retention Bonus or Job Support Scheme, contact the Employment & HR team.

 

 

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