JOB RETENTION BONUS
To encourage employers to keep as many employees on the payroll as possible into 2021 the Government has promised to pay a job retention bonus to employers of £1,000 per employee.
We do not know the full details of this scheme yet but to qualify for the bonus the employee must:
• have been on furlough and included in a coronavirus job retention scheme (CJRS) claim by the employer;
• have been continuously employed by the employer from the last furlough period until at least 31 January 2021;
• receive a salary of at least £1,560 for the period 1 November 2020 to 31 January 2021; and • not, on 31 January 2021, be serving a contractual or statutory notice period to cease their employment.
The employer's RTI records must be up to date to cover all periods up to and including 31 January 2021. All employees potentially qualify for the bonus, including directors and agency workers, if they meet the criteria above. However more conditions may be announced, particularly to prevent fraud. The bonus will be taxable income for the employer and will not have to be passed on to the employee.