As part of the Chancellor of the Exchequer Rishi Sunak’s ‘Plan for Jobs’, the government has introduced a new Job Retention Bonus (JRB). The scheme is designed to continue to support jobs through the UK’s economic recovery from Coronavirus, by encouraging and helping employers to retain as many employees who’ve been on furlough as possible.
The bonus will see businesses receive a one-off payment of £1,000 for every previously furloughed employee if they are still employed at the end of January next year.
Further details on eligibility requirements and how employers can claim the bonus have now been unveiled:
- Employers will receive a one-off payment of £1,000 for every employee who has previously been furloughed under the Coronavirus Job Retention Scheme (CJRS) – if they remain continuously employed to the end of January 2021
- To ensure the jobs are meaningful and well-paid, employees must earn at least £520 (the National Insurance lower earnings limit) a month on average between the beginning of November and the end of January
- Those who were furloughed and had a claim submitted for them after 10 June (when the CJRS closed to new entrants), because they were returning from paternal leave or time serving as a military reservist, will also be eligible for the bonus as long as they meet the other eligibility criteria
- Employers will also be eligible for employee transfers protected under TUPE legislation, provided they have been continuously employed and meet the other eligibility criteria and the new employer has also submitted a CJRS claim for that employee
As the scheme is designed to protect jobs, those who are serving notice for redundancy will not be eligible for the bonus.
Further details on the JRB can be found here, and full guidance will be published in September.
Notes:
- The CJRS grant will be tapered from August. In August, the government will pay 80 per cent of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work – 5 per cent of average gross employment costs.
- In September, the government will pay 70 per cent of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80 per cent total up to a cap of £2,500.
- In October, the government will pay 60 per cent of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20 per cent of wages to make up 80 per cent total up to a cap of £2,500.
If you require any assistance, please contact your usual Beavis Morgan Client Partner or email info@beavismorgan.com.
For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.