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We are very pleased to bring you this article written by Sarah Hall, Partner at Hay & Kilner Law Firm.

HMRC have now provided some further details on the Job Retention Bonus.

The bonus will be a taxable one-off payment of £1,000 to employers for every employee who: 

  • was furloughed and had a valid Coronavirus Job Retention Scheme (CJRS) claim submitted for them that meets all relevant CJRS criteria;
  • has been continuously employed by the employer from the most recent CJRS claim for that employee until at least 31 January 2021; 
  • has been paid at least £520 a month on average between 1 November 2020 and 31 January 2021 i.e. a total of at least £1,560 across the 3 months. Only earnings recorded through Real Time Information (RTI) records count towards this; 
  • has up-to-date RTI records for the period up to 31 January 2021; 
  • is not serving a contractual or statutory notice period that started before 1 February 2021. 

Employers may be eligible to claim the bonus in respect of an employee who transferred to them where either TUPE applies or the PAYE business succession rules apply, provided that the employee was successfully claimed for under the CJRS by the new employer. However, this will not apply to employees who transfer after 31 October 2020.

More details of the process will be published by the end of September and employers will be able to claim the bonus from February 2021. In the meantime, employers should ensure that their records are up-to-date and that they correctly report their employees' details through RTI as failure to do so may jeopardise a claim.

The team are very busy advising in respect of furlough leave, flexible furlough, redundancies and changing terms and conditions of employment. Please give us a call if we can help your business at this difficult time.

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