Employers will receive a one-off payment of £1,000 for each furloughed employee who returns to work.
Who is eligible for a Job Retention Bonus?
The criteria for receiving a Job Retention Bonus are fairly straightforward. Employers will be paid a £1,000 bonus by the government for employees that meet the eligibility requirements.
The worker must have been furloughed through the Coronavirus Job Retention Scheme.
They must be continuously employed until the end of January 2021.
Between the end of the Coronavirus Job Retention Scheme and the end of January 2021 employees’ average earnings must be above the Lower Earnings Limit (£520 per month).
The government will confirm further details before the end of July.
When will the Job Retention Bonus be paid?
Bonuses will be paid from February 2021 onwards, providing workers are continuously employed until January.
At the moment there is no information about how the bonus will be paid, but we will keep you up to date as we find out more.
Why has the Job Retention Bonus been introduced?
The COVID-19 lockdown caused many employers to furlough staff under the Coronavirus Job Retention Scheme. Government statistics show that the Scheme was used by over one million employers, with over 9 million jobs being furloughed.
Rather than risk mass redundancies as the Scheme winds down, the government are using the Bonus to encourage employers to retain staff.
Are directors eligible for the Coronavirus Job Retention Bonus?
Yes, directors can claim the Job Retention Bonus for themselves, providing they meet the other criteria, such as having been furloughed under the CJRS.