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How the new Job Retention Bonus will work


On 8 July, 2020, the government announced a new Job Retention Bonus for employers. Kate Shawcross from Harrison Drury’s Employment and Regulatory Team takes a look at what this means and how it affects those currently using the Coronavirus Job Retention Scheme (CJRS).

What is the Job Retention Bonus? 

The government has introduced a one-off payment of £1,000 to employers who have made use of the CJRS for each furloughed employee who remains continuously employed by the same employer until 31 January, 2021.

To be eligible for the bonus payment, the employees must:

  1. Earn no less than £520 per month on average for the months of November and December 2020 and January, 2021.
  2. Have been furloughed by the employer at any point and legitimately claimed for under the CJRS.
  3. Have been continuously employed by the employer at least up until 31 January 2021.

When can employers look to claim the bonus?

Employers with employees who meet the eligibility criteria will be able to claim for the one-off payments from February 2021. We understand that further information regarding this incentive will be announced by 31 July, 2021, and we’ll keep you updated.

A reminder about the next round of changes coming into play under the CJRS

In June we published several blogs regarding the upcoming changes to the CJRS from July 2020 onwards. You can refer to these blogs here:

Further reminders are as follows:

Claiming for employees who were furloughed on or before 30 June, 2020

Employers must ensure that they claim before the 31 July, 2020 for these employees so make sure you have all the information that’s needed to submit the claim. Also ensure that your keeping your workforce fully updated in terms of payments and work-related matters generally.

Further changes from 1 August, 2020

Remember that from this date onwards employers will not be able to rely on CJRS support to cover National Insurance (NI) and pension contributions for its furloughed workforce.

You can access the latest CJRS guidance from the Government website.

Make sure you are getting it right

It’s been no easy task keeping up to speed with all the CJRS developments over the previous months and employers have really had to take a proactive approach in ensuring that not only are they satisfied with the do’s and don’ts of the CJRS, but their employees are also fully up to speed with what’s going on and know what to expect.

As we make our way nearer to October 2020, and the ending of the CJRS, it’s inevitable that there is going to be an increase in redundancy activities across various industry sectors. While the CJRS and the new Job Retention Bonus has provided some support to businesses, we are beginning to see that for some, the support just hasn’t been enough.

These are difficult times and we are here to support you. Don’t risk exposing your business to potentially avoidable liability. If you have any concerns or questions at all regarding the CJRS, or regarding employment matters in general, contact Harrison Drury’s Employment and Regulatory Team on 01772 258321.

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