09.09.20 The Job Retention Bonus

Job Retention Bonus

What is the Job Retention Bonus?

As the Coronavirus Job Retention Scheme is closing on October 31st, many employers are left wondering, what comes next?

This is where the new Job Retention Bonus comes in.

At the end of January bonuses of £1000 will be paid to employers for every previously furloughed employee that is still in their employment.

This bonus is designed to support the UK’s economic recovery from Coronavirus.  Put in place by the Chancellor of the Exchequer as part of his ‘Plan for Jobs’, the bonus will provide additional support to employers who keep on their furloughed employees in meaningful employment.

 

Eligibility for the Job Retention Bonus

Employers can claim the bonus for any employee that they claimed a grant for through the Coronavirus Job Retention Scheme. Employees must have previously been furloughed and remain continuously employed to the end of January 2021. They must earn at least £520/month on average between the beginning of November and end of January.

 

What now?

The application to claim the bonus will be open from February 2021. With more guidance being published at the end of September we will likely know more about the process of claiming this bonus then.

For now, it is important to keep employee records up-to-date. You should also keep Grampian Accounting informed of any changes to your furloughed employees.

Please do not hesitate to contact us if you have any questions.