Furlough – Job Retention Bonus

A little more detail of the Job Retention Bonus Scheme that the Chancellor announced as part of his “Plan for Jobs” in the recent Budget. More details will follow in September, but what we know so far:

Which employers can claim?

An employer can apply for the bonus for any employees that were eligible for the furlough scheme and in respect of whom they made a claim for furlough pay. Where a claim for an employee was incorrectly made, a Job Retention Bonus will not be payable. All employers are eligible for the scheme including recruitment agencies, umbrella companies and those who have acquired employees following a TUPE transfer.

Rishi Sunak announced his “Plan for Jobs” in the recent Budget

Which employees can you claim the bonus for?

  • employees that were furloughed and had a Coronavirus Job Retention Scheme claim submitted for them that meets all relevant eligibility criteria for the scheme
  • have been continuously employed by the relevant employer from the time of the employer’s most recent claim for that employee until at least 31 January 2021
  • have been paid an average of at least £520 a month between 1 November 2020 and 31 January 2021 (a total of at least £1,560 across the 3 months). The employee does not have to be paid £520 in each month, but must have received some earnings in each of the three calendar months that have been paid and reported to HMRC via RTI;
  • have up-to-date RTI records for the period to the end of January
  • are not serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim

What earnings can be included in the £520 a month average minimum earnings threshold?

Only earnings recorded through HMRC Real Time Information (RTI) records can count towards the £520 a month average minimum earnings threshold.

How to make the claim?

From February 2021, employers will be able to claim the Job Retention Bonus through GOV.UK. More detail about this process will be published in guidance by the end of September 2020.

What should employers do now?

Ensure that their records are up- to date including accurately reporting employee details via RTI. Ensure all furlough claims have been accurately submitted.

For all your employment law related questions contact Ami Naru –

ami@travlaw.co.uk

0113 258 0033

Latest news

Hot Topics Returns!

Travlaw’s regular webinar series made a return this week, tackling the most pressing topics affecting the Travel industry today. Hosted…

Find out more

Kate Qualifies To Add To Travlaw’s Solicitor Team

Kate Qualifies To Add To Travlaw’s Solicitor Team Following a Training Contract at Travlaw, Kate Imeson has qualified as a…

Find out more

Travlaw experts host “ABTOT Zoominar 4 – Brexit, bafflement and blundering on”

October 15th 2020 Matt Gatenby, Nick Parkinson and Natalie Dindar took part in the fourth ABTA Zoominar – “Brexit, bafflement…

Find out more