The Government has unveiled further measures to support UK employers and their employees impacted by the coronavirus pandemic with the introduction of the Job Retention Bonus Scheme which aims to incentivise employers to retain staff who have been furloughed when the Coronavirus Job Retention Scheme (CJRS) ends in October.
The new Scheme rewards employers who keep previously furloughed employees in their job roles until January 2021 with a one-off £1,000 bonus per employee.
Eligibility for the Job Retention Bonus Scheme
The Government has announced the criteria applicable for employers to claim the amounts in respect of their employees who:
- Earn a minimum of £520 per month (above the Lower Earnings Limit) on average during November, December 2019 and January 2020;
- Have been placed on furlough by their employer whilst the CJRS has been in place; and
- Be employed by the employer on a continuous basis up until at least 31st January 2021.
Employers will be able to claim the £1,000 bonus from February 2021, once accurate Real-Time Information (RTI) to 31st January has been received by HMRC.
Further details regarding the Job Retention Bonus Scheme will be published on 31st July and the full guidance will be released in the autumn.
Another measure which the Government will roll out is a ‘Kickstart Scheme’ which is a fund designed to create thousands of six month work placement jobs, specifically for those aged 16 to 24 who are on Universal Credit and are at risk of long-term unemployment.
Through the Scheme, the Government will fund each job role, covering 100% of the relevant National Minimum Wage for 25 hours per week, plus employer National Insurance and automatic enrolment contributions.
Traineeships for young people
The Chancellor also proposed a trainee/work experience scheme for 16 to 24 year olds where organisations, who provide trainees with work experience, will be paid £1,000 per trainee.
As part of the trainee scheme, the Government will make improvements to training provisions, expanding eligibility for traineeships to those with Level 3 qualifications and below.
For details of the other measures which the Government have introduced, please click here.
How Nelsons can help
For further information on the Job Retention Bonus Scheme, CJRS, furlough leave or any related subjects, please contact Laura or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.