COVID-19: Job Retention Bonus

• The Chancellor announced the introduction of a Job Retention Bonus during his Economic Update yesterday (8th July)
• The bonus scheme is a one-off payment of £1,000 to employers that have utilised the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31 January 2021
• To be eligible, employees will need to;
  • Earn at least £520 per month (above the Lower Earnings Limit) on average for November, December, and January
  • Have been furloughed by you at any point and legitimately claimed for under the CJRS
  • Have been continuously employed by the employer up until at least 31 January 2021
• Employers will be able to claim the bonus from February 2021 once accurate RTI data to 31 January has been received.
• Further information on the bonus scheme will be available by 31 July and full guidance will be published in the Autumn

Aspire Comment

As life slowly returns to a “new normal” and the CJRS is enters its next and final phases between August and October, Government has introduced a bonus scheme intending to support employers to retain employees avoid mass redundancies.

Reportedly, there have already been in excess of 600,000 redundancies between March and May 2020 and with the end of the CJRS looming, we are sure that there will be many more as employers make furloughed staff redundant whilst the continuation of their business remains under review.

If you require any further coronavirus guidance, aid with redundancies or restructuring your business, or employment tax guidance, please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk.