Job Retention Bonus – Details Announced
The Chancellor has set out details of the Job Retention Bonus to be paid out to employers next year. It is for employers who have furloughed workers and retained them in employment until 31 January 2021.
Therefore if an employer has had workers on furlough leave at some point and they remain employed at the above date (and not under notice), it will qualify for the bonus.
HMRC will make a payment of £1,000 to the employer for each eligible employee. This is a bonus to the employer, and the employer is not required to pass it over to the employee.
The bonus is the same amount for each employee irrespective of their actual wages. To receive the bonus, the employer must have paid a salary of at least £1,560 to the employee between 6 November 2020 and 5 February 2021.
Employers need to claim for the bonus between 15 February and 31 March 2021. It remains to be seen whether this in conjunction with the Job Support Scheme will be sufficient for employers to avoid making redundancies.
There is government guidance and a Treasury Direction available dealing with this bonus.
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This information is correct at 10am on 6 October 2020.
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