Employers can claim a one-off payment of £1,000 per eligible employee. This is known as the job retention bonus.
The bonus is paid to the employer. It is to encourage employers to retain their furloughed employees and not lay them off.
The Government hopes that by offering this incentive, mass redundancies will be avoided as the furlough scheme is wound down.
See the Furlough Scheme Extension Rules from July for more information on these changes.
There are currently three requirements to be eligible for the additional grant.
These relate to employee earnings, whether they’ve previously been furloughed and in continued employment.
The employee must earn a minimum amount in November, December and January. The minimum amount is an average income of at least £520 per month.
The job retention bonus is only available to employees who have been furloughed at some point in the last few months.
A claim under the job retention scheme will need to have been submitted and this claim must be legitimate.
The employee must remain in employment up until at least 31st January 2021.
The Job retention bonus is worth £1,000 per eligible employee.
There is currently no limit on the number of employees a business can claim for.
To claim employees need to remain in employment up to and including 31st January 2021.
As a result the claim will not be available until February 2021.
There are currently no specific exemptions for Directors.
As a result, so long as the three requirements mentioned previously are met then a claim is possible.
We await further information from HMRC on whether any exemptions will be added at a later date.
HMRC have confirmed that further information on the job retention bonus will be published on 31st July 2020. See the Government website for all of the latest announcements.
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