Job Retention Bonus Scheme

*UPDATE – The Job Retention Bonus Scheme will no longer be paid in February 2021, as the Coronavirus Job Retention Scheme (CJRS) has been extended until the end of March 2021.

Due to the extension of the CJRS, the Government’s view is that the main intent of the Job Retention Bonus Scheme no longer applies as employers now have the option to furlough employees under the CJRS. The Government has confirmed that they will redeploy a “retention incentive at the appropriate time”.*

At the beginning of July, the Government unveiled additional measures to support UK employers and their employees impacted by the coronavirus pandemic with the introduction of the Job Retention Bonus Scheme. The Scheme aims to incentivise employers to retain staff, who have been furloughed, when the Coronavirus Job Retention Scheme (CJRS) comes to a close at the end of this month.

The Job Retention Bonus Scheme rewards employers who keep previously furloughed employees in their job roles until January 2021 with a one-off £1,000 taxable bonus per employee.

Eligibility for the Job Retention Bonus Scheme

In order for employers to be eligible to claim under the Job Retention Bonus Scheme, the employee must:

• Have been placed on furlough by their employer whilst the CJRS has been in place;
• Been employed by their employer on a continuous basis, and not under notice, up until at least 31^st January 2021; and
• Earn a minimum salary of £1,560 between 6th November 2020 and 5th February 2021 (this is designed to stop employers receiving a bonus through the Scheme by retaining an employee, such as a zero hours or agency worker, and paying them a low salary before the end of January 2021).

Employers will be able to claim the £1,000 bonus for eligible employees from February 2021, once accurate Real-Time Information (RTI) to 31^st January has been received by HMRC. The payment is a bonus to the employer, who is not obligated to pass on the payment to the employee.

Employers will be able to claim between 15^th February and 31^st March 2021.

If HMRC are investigating/checking an employer’s CJRS claim or claims, they can still apply for the bonus amount but any bonus payments will most likely be delayed until the checks have been completed and the employer has been judged not to have fraudulently claimed for their employee.

If HMRC decide that an employer has made an incorrect CJRS claim or claims in respect of an employee, the employer will not be able to claim the bonus payment for that employee.

Further guidance on making a claim through the Scheme will be published soon.