Coronavirus Job Retention Bonus – What You Need to Know
On 8th July 2020, Chancellor Rishi Sunak presented his ‘Plan for Jobs’ which detailed our country’s approach to economic recovery after Covid 19 and introduced the Coronavirus Job Retention Bonus. More detailed guidance was recently published on how the Cornavirus Job Retention Scheme would operate.
So, what is the Job Retention Bonus?
The Job Retention Bonus is a one-off payment of £1,000 payable to employers for every employee they bring back to work from furlough who is still in meaningful employment through to 31st January 2021 without a break in service.
The key areas to be aware of are:
The £1000 is a one-off payment;
Eligible employees must earn a minimum of £520 per month, on average, between 1st November 2020 and 31stJanuary 2021;
Payments will be made in February 2021;
There can be no break in service for those claimed for; and
Employers will have to complete and file PAYE for January 2021
Employers will be able to claim for eligible employees who:
were furloughed and had a Coronavirus Job Retention Scheme claim submitted for them that meets all relevant eligibility criteria for the scheme;
have been continuously employed by the relevant employer from the time of the employer’s most recent claim for that employee until at least 31 January 2021;
have been paid an average of at least £520 a month between 1 November 2020 and 31 January 2021 (a total of at least £1,560 across the 3 months). The employee does not have to be paid £520 in each month, but must have received some earnings in each of the three calendar months that have been paid and reported to HMRC via RTI;
have up-to-date RTI records for the period to the end of January; and
are not serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.
Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including office holders, company directors and agency workers, including those employed by umbrella companies. The above criteria must be met regardless of the frequency of the employee’s pay periods, their hours worked and rate of pay.
Further detailed guidance is available here.
Remember – contact us for support with furlough, the Job Retention Bonus and redundancy. Our team at Danton have a full understanding of what is required and we’re on hand to support you and work through these challenges with you, whether that be guiding through the process or helping ease the load during this transition. Call us today on 01527 306760 or email us at info@dantonhr.com.