Posts Tagged ‘Job Retention Bonus’

Latest update on the job retention bonus and job support scheme

Posted on: October 9th, 2020

As the ability to furlough employees under the Coronavirus Job Retention Scheme (CJRS) rapidly comes to an end, employers will need to consider whether they can, and wish to, benefit from the Government’s two additional schemes: the Job Retention Bonus, and the Job Support Scheme.

Now that some of the finer details of these alternatives have been released by the Government, we provide a summary for employers below. It is also worth noting that since we wrote this article, the Chancellor has announced a further amendment to the Job Support Scheme:

Job Retention Bonus

Put simply, the Job Retention Bonus is a £1,000 one-off taxable payment made to employers, for each eligible employee retained until 31 January 2021. The Bonus does not have to be paid on to the employee.

The following specific rules apply:

Job Support Scheme

The Job Support Scheme is designed to protect ‘viable jobs’ in businesses who are facing lower demand due to the COVID-19 pandemic. The Scheme is certainly not as generous as furloughing under the CJRS and operates differently. Ultimately, an employer will continue to pay its employee for any time worked, but the burden of hours not worked will be split between the employer and the government (through wage support) and the employee (through a wage reduction), helping the employee to keep their job.

As always, the devil is in the detail. In summary:

Job Support Scheme – Local COVID Restrictions

The Chancellor announced on Friday 9 October that the Job Support Scheme will be expanded to support businesses required to close due to local COVID-19 restrictions. We are awaiting full guidance, but the headline points are:

If you have any questions about the content of this article, please do get in touch with the Employment Team at Coffin Mew.

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