During the Summer Economic Update, the Chancellor Rishi Sunak announced his Plan for Jobs, which included a new incentive for users of the Coronavirus Job Retention Scheme (CJRS) to keep furloughed workers employed until January 2021.
The Job Retention Bonus (JRB) will encourage employers to bring back furloughed employees by allowing them to claim a £1,000 payment for every previously furloughed worker that is retained.
To qualify for the JRB, an employer must bring employees back to work in roles that pay above the Lower Earnings Limit of £520 per month on average, between the end of the October and the end of January 2021.
If an employer keeps the employee in employment and meets the criteria of the scheme, a JRB payment will be made from February 2021 for each eligible employee.
Further information about the JRB is expected from the Government on 31 July 2020.
If you would like advice on how these changes are likely to affect you or your business, please contact us.