Postponed Job retention bonus scheme
*This scheme has been postponed until further notice*.
On 8 July 2020, the Chancellor of the Exchequer, Rishi Sunak, gave initial details of a scheme designed to offer additional support to businesses who have furloughed employees during the coronavirus pandemic.
The Coronavirus Job Retention Scheme was introduced in March 2020 and will end on 31 October 2020.
On 8 July 2020, the Government announced the new Job Retention Bonus Scheme, which is a further measure to support businesses financially as they emerge from the period affected by coronavirus disruption.
It offers employers the ability to claim a £1000 taxable bonus for every previously furloughed employee who is still in employment on 31 January 2021.
However this scheme is now postponed.
As with other Coronavirus grants, the JRB will be taxable as the employer’s income.
Employers will be able to claim the Job Retention Bonus in respect of employees who were on parental leave or were mobilised as military reservists, returning after 10 June 2020 and were then claimed for under the CJRS.
No limit has yet been announced on the number of employees that can be claimed for, nor any restriction on the size of employer who can claim the bonus.
Eligible persons may include employees, office holders, company directors, and agency workers, including those employed by umbrella companies, so long as they meet all of the criteria.
For the employer to claim for and receive the one-off payment of £1,000, it must be the case that the person to be claimed for:
- was furloughed between 1 March and 31 March 2021 and had a Coronavirus Job Retention Scheme or a Job Support Scheme claim submitted in respect of them and accepted
- has been continuously employed by you from the time of your most recent claim for that employee until at least 31 January 2021
- must earn above £520 per month on average between 1 November 2020 and 31 January 2021 (a total of at least £1560 across the 3 months)
- has up-to-date Real Time Information records for the period to the end of January 2021
- is not serving a contractual or statutory notice period that started before 1 February 2021 for the employer making a claim
When will the one-off payment(s) be made?
This scheme has been postponed and there is no date for payments to be made at present.
How to apply
The full rules of the scheme and guidance on how to apply will be announced in due course.