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Job Retention Bonus

14-10-2020


From 15 February until 31 March 2021, employers may be eligible to claim the Job Retention Bonus. The Bonus is a one-off £1,000 taxable payment made to employers in respect of each eligible furloughed employee who has been continuously employed until 31 January 2021. The Bonus does not have to be paid to employees.

Eligibility

Employers can claim if they furloughed employees and made an eligible claim through the Coronavirus Job Retention Scheme. Link to our page can be found here.
Employers can claim for employees:

If the employer has repaid any grant amounts to HMRC in respect of any of their employees, they can not claim the bonus for those employees.
The Bonus can also be claimed for individuals who are not employees, such as agency workers, as long as the above conditions are met.
The Bonus can still be claimed if the employee is placed on the Job Support Scheme as long as the eligibility criteria is met. Link to our page can be found here.

TUPE

Employers may be eligible in respect of employees of a previous business who transferred if:

This means that employers can not claim in respect of employees who transferred to them after the Coronavirus Job Retention Scheme closes on 31 October 2020.

Minimum income threshold

To meet the minimum income threshold, employees must be paid a total of at least £1,560 taxable pay as reported to HMRC throughout the November, December and January tax months (running from the 6th of each month to the 5th of the next).
The criteria applies regardless of how often the employee is paid and any circumstances that may have reduced pay in the period, such as unpaid leave.

Making a claim

Employers must ensure that they are enrolled for PAYE online, keep up to date with their PAYE reporting, and comply with requests from HMRC to provide data for past Coronavirus Job Retention Scheme claims.
The Government’s guidance will be updated by end of January 2021. You can find further information here.


Julie Taylor

Partner
Employment Law

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