On 31 July 2020, the Government published a policy paper called Job Retention Bonus, with the aim of providing more clarity about the Job Retention Bonus Scheme which was announced by the Chancellor of the Exchequer earlier in the summer.
The Policy Paper confirms that eligible employers (including recruitment agencies and umbrella companies) may claim £1,000 for each eligible employee in respect of whom they have made a valid claim under the Coronavirus Job Retention Scheme (CJRS), provided that the employee remains in employment until 31 January 2021.
The intention of the scheme is to provide a one-off bonus to encourage employers to retain furloughed employees in “meaningful employment” after the government’s CJRS ends on 31 October 2020.
To claim the bonus, employees must on average be paid at least £520 a month between 1 November 2020 and 31 January 2021 (with such earnings being recorded through the HMRC RTI scheme), and must not be serving a contractual or statutory notice period.
Claims for a bonus may also be made in respect of “qualifying individuals” who are office holders or company directors.
Employers can also claim for any eligible employees who were first furloughed after the CJRS cut-off date of 10 June 2020, if they are returning from paternity leave or if they were part of the military reserve force.
Organisations will also be eligible to claim the bonus for any employees who transfer to them from another organisation under the Transfer of Undertakings (Protection of Employment) Regulations, or who are inherited from a company in compulsory liquidation, assuming the employees meet other eligibility criteria, including that the transfer happened on or before 31 October 2020.
Employers who intend to claim the Job Retention Bonus should ensure that their employee records are sufficiently up-to-date, including accurately reporting their employee’s details and wages.
It is also important to make sure all of their CJRS claims have been accurately submitted and that HMRC have been notified of any necessary amendments.
Further details are expected at the end of September.
For more information on the article above contact Keeley Parkes or Charles Pallot.