At the end of July, the government published a policy paper on the Job Retention Bonus, a one-off taxable payment that can be claimed by employers who continue to keep furloughed employees in meaningful employment after the Coronavirus Job Retention Scheme (CJRS) closes in October.
Any employer who made a successful claim for employees under the CJRS can claim for a Job Retention Bonus. This includes recruitment agencies and umbrella companies. A £1,000 bonus can be claimed in respect of each furloughed employee who remains in employment through to January 2021.
Employers will only be able to submit a claim in respect of employees who:
• Were furloughed and in respect of whom the employer claimed salary under the CJRS.
• Have been continuously employed by the employer from the date of their most recent claim through 31st January 2021.
• Have been paid on average at least £520 per month from 1st November to 31st January 2021 (a total of £1,560 for that 3-month period), the employee must have been paid in respect of each of these months and an RTI submitted to HMRC in respect of those earnings.
• Have up to date RTI records up to January 2021.
• Are not serving a period of notice that started before 1st February 2021.
Where HMRC suspects a fraudulent or inflated CJRS claim has been made, a bonus payment in respect of the affected employee (or employees) will be withheld until an investigation can be completed.
More detailed guidance on how employers will be able to submit claims is expected to be released in September, for now it is advised that employers keep up to date records of employee pay and ensure that all CJRS claims have been accurately submitted.
If you have any questions about the bonus, furlough leave, bringing your staff back to work or commencing a redundancy process, please contact us.