Job Retention Bonus

Job Retention Bonus

Employers can claim a one-off payment of £1,000 per eligible employee. This is known as the job retention bonus.

UPDATE: Following the extension of the Furlough Scheme from November 2020 to March 2021 this bonus has been postponed. It has not yet been cancelled but no further announcements have been made. The details below are how the original scheme was intended to work and therefore the dates and amounts are just a guide only!

Who receives 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.

Who is eligible for the Job Retention Bonus?

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.

What are the Minimum Earnings Requirement?

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.

What is the Previously Furloughed Requirement?

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.

What is the Continuously Employed Requirement?

The employee must remain in employment up until at least 31st January 2021.

How much can Employers Claim?

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.

When can Employers Claim the Retention Bonus?

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.

Do Directors Qualify for the Job Retention Bonus?

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.

When will Further Guidance be Available?

HMRC have yet to provide any further guidance on when this bonus will be reinstated if at all. For the time being the Furlough Extension from November to March is the main source of Government support.

DISCLAIMER – Please note that the content contained in this article is for general information only and is not a substitute for professional advice – read our full disclaimer

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