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Job Retention Bonus

The government recently announced a Job Retention Bonus to incentivise employers to keep on furloughed staff.
Bringing your employees back from furlough

As the government’s Coronavirus Job Retention Scheme winds down, you will be thinking about your next steps in terms of whether you are able to bring back staff, or whether you could be faced with the difficult decision to make some of your workforce redundant.

Supporting your staff back in to work
To encourage you to retain as many of your employees as possible, the government will pay your business a bonus of £1000 for every furloughed worker you bring back – providing you keep them employed until at least January 2021.
Why has the Job Retention Bonus Scheme been introduced?

The Job Retention Bonus Scheme has been introduced to reward and incentivise employers to keep on any staff who have been furloughed over the past few months. It’s important that furloughed staff are supported back to work, to prevent their skills from fading and to ensure that they maintain strong employment relationships.

The scheme has also been introduced to reduce the risk of redundancies and unemployment.

How does the Job Retention Bonus Scheme work?

For every furloughed employee that you bring back, you will receive a one-off payment of £1000.

What are the conditions of the Job Retention Bonus Scheme?

To receive the £1000 payment per employee, you must meet the following criteria:

  • Bring the employee(s) back from furlough, and keep them in continuous employment until at least the end of January 2021.
  • Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021.
Which businesses are eligible?

All businesses based in the UK are eligible if they have furloughed staff, regardless of the industry or size of the organisation.

When will I receive the payment?

Payments will be made from February 2021 onwards.

Is there a limit on how many employees I can keep on?

At this time, there is no cap on how many employees you can keep on – this is to reward businesses for retaining as many members of staff as possible, and for preventing redundancies and unemployment.

When will the furlough scheme come to an end?

The furlough scheme will wind down flexibly over the coming months, officially ending in October.

Find out more