Employers to receive £1k bonus for bringing staff back from furlough
£1k Job Retention Scheme "Bonus" for Employer
Employers who retain staff for three months after the furlough scheme ends in October will receive £1,000 government ‘Bonus’ for each employee.
One of the main purposes of the Coronavirus Job Retention Scheme (CJSR) has been to support continued employment rather than face the prospect of mass redundancy.
In his Summer Statement, the Chancellor confirmed that the government is introducing a new Coronavirus Job Retention bonus to reward and incentivize employers who continue to employ their furloughed employees through to the end of January 2021.
Although a modest sum, this will undoubtedly be useful, coming at a time when those businesses which have deferred tax debts begin to work out how to pay these.
All employers are eligible for the JR Bonus scheme, provided they have:
Complied with their obligations to pay and file PAYE accurately and on time under the RTI reporting system for all employees
Maintained enrolment for PAYE online
A UK bank account.
Key Points to note
One-off payment of £1,000 for each employed employee
Only available for UK employers
For every furloughed employee who remains continuously employed through to 31 January 2021(Nov 2020, Dec 2020 & Jan 2021)
Employees must earn above the National Insurance lower earnings limit (£520 per month) on average between 31 October 2020 when the CJRS ends and the end of January 2021.
The bonus payments will be made from February 2021
Directors of Ltd company who are also an employee and are furloughed till Oct 2020, can Un-furlough/employ and have their payroll run for their limited companies from Nov 2020 to Jan 2021 to avail the Job Retention employer bonus.
What happens if employees have given or been given notice before 1 February 2021?
As the JR Bonus scheme is designed to protect jobs, employers will not be eligible to claim the JR Bonus in respect of any employee serving “a contractual or statutory notice period, that started before 1 February 2021”. Although the press release announcing the policy paper refers explicitly to those who are serving notice for redundancy, the policy paper appears to exclude from the JR Bonus scheme employees serving notice for any reason (including those who may have served notice to their employers).