Updated: 12 November 2020
Due to the continuation of the furlough scheme until March 2021 the Job Retention Bonus (JRB), a one-off, taxable payment of £1,000 to reward employers for bringing workers back from furlough will not be available as originally intended. The government has not confirmed whether it will be offered after the furlough scheme stops and we will update our articles once further information becomes available.
The original intention for the Job Retention Bonus was as follows:
Background to the Job Retention Bonus (JRB)
This is a payment for employers to keep, it is not intended to be passed to employees, and the scheme is open to all UK employers. It offers a lump sum payment for every employee furloughed under the Coronavirus Job Retention Scheme (CJRS), provided they return from furlough and then remain continuously employed by the same employer from the end of the claim period of the last CJRS claim until 31 January 2021.
How does the Job Retention Bonus (JRB) work?
This information is based on the original scheme and may not be applicable if and when the JRB is offered. The original conditions were as follows:
- Claims must be made between 15 February 2021 and 31 March 2021;
- An employee must earn more than £1,560 gross from 6 November 2020 to 5 February 2021 and must be paid at least one payment of taxable earnings per month (i.e. once from 6 November to 5 December, once from 6 December to 5 January and once from 6 January to 5 February);
- Statutory Sick Pay counts as taxable earnings, but this can be reduced as a result of any pension contributions made under a net pay arrangement;
- Employees will not qualify if they are working through their notice period (either contractual or statutory notice) on 31 January 2021;
- Employers will not be eligible if they have repaid CJRS grant amounts;
- Claims will be made from HMRC.
Full details of how to make a claim will be released by the end of January 2021. As soon as we receive the updated information, we will share the details with you.
In the meantime, if you would like more information about the government support schemes available for Covid-hit businesses, please visit our website resources or email partners@rjp.co.uk.