Job Retention Bonus Scheme Update

On 8 July 2020, the Chancellor Rishi Sunak announced the Government’s Plan for Jobs 2020.  As part of that plan, Mr Sunak introduced a new Job Retention Bonus that will be payable in some circumstances to employers that bring employees back from furlough.  More detail has now been provided in the following update issued on 31st July.

Employers will be able to receive a one off payment of £1,000 (taxable) for every employee they have made a claim for under the Coronavirus Job Retention Scheme before the 10th June 2020 and who has been continuously employed and still employed with them at the end of January 2021.

To be eligible and to ensure the jobs are meaningful well-paid, employees must have earned at least £520 a month on average between the beginning of November 2020 and the end of January 2021 (the national insurance lower earnings limit). An employee does not have to have been paid £520 in each month, but must have received some pay in each of the three calendar months and earned at total of at least £1,560 across the 3 months.

Employers can also claim for any employee who had been furloughed after 10th June due to returning from parental leave or time serving as a military reservist as long as they meet the other criteria.

Employers will also be eligible for employee transfers protected under TUPE legislation provided they have been continuously employed, meet the other criteria and the new employer submitted a CJRS claim for the employee.

It excludes employees who are serving either a contractual or statutory notice period that started before 1st February 2021.

Further detailed guidance will next be published in September 2020.

Any retention bonus clams can be made from February 2021.

If you would like further information, please contact Clover HR on 0121 516 0299 or email us at

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