Coronavirus (Covid-19) Hub

Covid-19 : Business Support 31.07.20 – Update 42

Job Retention Bonus

On Wednesday 8 July, The Chancellor of the Exchequer presented his ‘Plan for Jobs’ to Parliament outlining how the government will support the UK’s economic recovery and as part of this introduced a new Job Retention Bonus to provide additional support to employers who keep on their furloughed employees in meaningful employment, after the government’s Coronavirus Job Retention Scheme ends on 31 October 2020.

The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021.

Today further information has been released on the scheme including confirmation on eligibility and when you will be able to claim.

Eligibility

Employers will be able to claim for employees who:
• were furloughed and had a CJRS 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; and
• are not serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.
Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including office holders, company directors and agency workers, including those employed by umbrella companies. The above criteria must be met regardless of the frequency of the employee’s pay periods, their hours worked and rate of pay.

Claiming

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 you do now if you intend to claim the Job Retention Bonus

Employers should ensure that their employee records are up-to-date, including accurately reporting their employee’s details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system. Employers should also make sure all of their CJRS claims have been accurately submitted and any necessary amendments have been notified to HMRC.

Coronavirus Job Retention Scheme (“CJRS”)

Also please be mindful that any CJRS claims up to 30 June must be submitted to HMRC today, 31 July 2020.

ASM Contacts

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Grainne Quinn – Magherafelt
grainne.quinn@asmmagherafelt.com

Ian Finnegan – Newry
ian.finnegan@asmnewry.com

Caroline Keenan – Belfast
caroline.keenan@asmbelfast.com

Michael P. O’Hare – Dundalk
michael.p.ohare@asmdundalk.com

Alistair Cooke – Dungannon
alistair.cooke@asmdungannon.com