The Job Retention Bonus - how will the scheme work?
What is the job retention bonus?
The government is introducing a new job retention bonus to provide additional support to employers who keep their furloughed employees in “real” employment. This is intended to ensure that as many employers as possible bring furloughed employees back to work when the job retention scheme ends on 31 October 2020 and to keep them in employment for six months.
The payment is designed to be a one-off payment of £1,000 for every employee for whom employers have made a claim under the job retention scheme and who remain continuously employed until 31 January 2021. The chancellor believes the scheme will be particularly helpful to small and medium sized businesses.
From February 2021, employers will be able to claim the job retention bonus through GOV.UK.
Which of my employees is eligible?
Employees who were furloughed after the cut-off date of 10 June 2020 or who are returning from paternity leave or were part of the military reserves are eligible. Those on fixed term contracts will also be eligible subject to them having have continuous employment with you at the time of claiming.
Employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021.
You can claim the bonus for all employees who meet the above criteria, including office holders, company directors, agency workers and those employed by umbrella companies.
You will not be able to claim for any employee who is serving their notice after 1 February 2021.
Can I claim the bonus for my employees?
You will be able to claim the job retention bonus for any employees that were eligible for the coronavirus job retention scheme that you have claimed a grant for. Where a claim for an employee was incorrectly made, a job retention bonus will not be payable.
All employers are eligible for the scheme including recruitment agencies and umbrella companies.
What information will I need in order to claim?
You must have complied with your obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system for all employees.
TUPE
To claim the job retention bonus for employees who have been transferred into your business they must have been furloughed and successfully been claimed for under the scheme by you as their new employer. You will be unable to claim the bonus in respect of any employee transferred under TUPE after 31 October 2020.
What earnings can be included in the £520 a month average minimum earnings threshold?
Only earnings recorded through HMRC Real Time Information (RTI) records can count towards the £520 a month average minimum earnings threshold.
When can I claim the Job Retention Bonus?
You can claim from February 2021.
Do my employees need to return to the same job after furlough?
It is not yet clear whether employees have to return to the same job in order to claim the job retention bonus.
Detailed guidance on how to claim will be published in September 2020. More details on the scheme are available at: https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus