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The Independent Automotive Aftermarket Federation

Job Retention Bonus: clarification of the scheme from Lawgistics

Date: Tuesday 13 October 2020

Back in July 2020 the government announced that, for every employee who was on furlough at some point and was in continuous employment until the end of January 2021, a bonus of £1,000 would be paid.

There is now a detailed government guide and a dedicated Treasury direction, which sets out the full provisions and eligibility criteria. The only part still missing is how to make a claim, and this will be added in by the end of January 2021, closer to the claim period opening date.

The guide can be found here: https://www.gov.uk/guidance/check-if-you-can-claim-the-job-retention-bonus-from-15-february-2021 

Employers will be able to claim the bonus between 15 February 2021 and 31 March 2021. No claim can be submitted after the claim period ends.

The bonus amount of £1,000 has been confirmed. Importantly, the guidance suggests that the bonus does not have to be passed to the employee and may be used for other purposes in the business. The bonus will count as taxable income.

To qualify to claim the bonus, the employer must:

The bonus may be claimed for each employee who meets these criteria:

The government guide has a link to examples illustrating the minimum payment requirements.

Company officers count as employees for the purposes of the job retention bonus.

A claim under the new Job Support Scheme will not invalidate the bonus entitlement.