All employers will be able to claim through the job retention bonus scheme including recruitment agencies and umbrella companies.

Employees will be eligible if they were eligible for the Coronavirus Job Retention Scheme and their employers have claimed a grant for them.

Specifically employers will be able to claim for employees who:

• were furloughed and had a Coronavirus Job Retention Scheme claim submitted for them that meets all relevant eligibility criteria for the scheme;
• have been continuously employed from the time of the employer’s most recent claim for that employee until at least 31 January 2021;
• have been paid an average of at least £520 a month between 1 November 2020 and 31 January 2021; 
• have up to date RTI records for the period to the end of January;
• are not serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.

Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including office holders, company directors and agency workers, including those employed by umbrella companies. 

The Job Retention Bonus will be a one-off payment of £1,000 for every eligible employee that is claimed for. Please note that the bonus will be taxable.

To make sure that employers are ready for when the scheme goes live, they should ensure that they have:

• complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system for all employees;
• maintained enrolment for PAYE online;
• a UK bank account.

If an employee was on statutory parental leave, returned after 10th June 2020 and was claimed for under the scheme then the employer will be able to claim the Job Retention Bonus provided the other eligibility criteria outlined above are met.

If an employee is on a fixed term contract and was claimed for under the scheme, then their employer can claim the Job Retention Bonus in respect of that employee provided the other eligibility criteria are met.

Contracts can be extended or renewed without affecting eligibility for the bonus, provided that continuous employment is maintained.

Where a claim for an employee was incorrectly made, a Job Retention Bonus will not be payable. HMRC will also withhold payment of the Job Retention Bonus where it believes there is a risk that Coronavirus Job Retention Scheme claims may have been fraudulently claimed.

All we know at the moment is that from February 2021, employers will be able to claim the Job Retention Bonus through GOV.UK.  More details will be released in amended guidance by the end of September 2020.

We’ll update you with further information in September once it becomes available so keep checking back with us for updates.