02 October 2020
New guidance on Job Retention Bonus announced
The Treasury has issued new guidance to employers on how to claim through its Job Retention Bonus. It will operate alongside the Job Support Scheme and the bonus is available to employers who have had employees which have been on furlough at some point; and are still employed, but not under notice as at 31 January 2021.
Employers can apply for the bonus from 15th February until 31 March 2021.
The bonus has been created to support jobs through the pandemic by helping employers to retain as many furloughed workers as possible.
Employers will still be able to claim even if they are receiving support from the Job Support Scheme.
Chancellor Rishi Sunak explains: “The Job Retention Bonus is an additional boost employers can receive on top of the extensive support we’ve already put in place for businesses, including loans, grants and our new Job Support Scheme.
“I know how hard employers have worked to bring furloughed staff back, and this bonus, equal to a 20 per cent wage subsidy, will help ensure they continue to retain them.”
The £1000 Job Retention Bonus is equivalent to a 20 per cent wage subsidy for the employment costs of the average person previously furloughed. However, for those on lower incomes, it equals 40 per cent of wage costs over three-months to the end of January 2021.
To be eligible for the £1000 Job Retention Bonus, the employer must have paid wages of at least £1,560 to the employee between 6 November 2020 and 5 February 2021.
A payment of £1,000 will be given to the employer for each eligible employee. This is a bonus to the employer, and the employer is not obliged to pass it over to their workers.
The Treasury does not specify how to claim, but further direction is expected.
This new guidance has been published ahead of the launch of the new Job Support Scheme launching in 1 November 2020.