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Job Retention Bonus Scheme and Notice

Job Retention Scheme

Thursday, July 9, 2020

Rishi Sunak has just issued the summer statement and has outlined details of a job retention bonus scheme.  Guidance is to be issued by 31 July, which I suspect means in practice 5.00 pm 31 July 2020.

The requirements of the scheme seem to be quite simple:

  1. An employee has been on furlough under the Job Retention Scheme at some point.
  2. That individual remains on the payroll and is at work in the period 1 November 2020 – 31 January 2021.  They must be on the payroll.
  3. During that period their pay must average £520 per month.

If all of the above conditions are met, then the employer can claim a £1,000 bonus under the furlough scheme in the February pay run.

Separately there have been some suggestions in the press that individuals on redundancy notice are not eligible to seek recoupment under the furlough scheme.  Whilst there is no definitive guidance, for the Revenue to take that view would be capable of legal challenge.  As long as an individual is on the payroll and on furlough under the Job Retention Scheme, then the fact they are on notice should make no difference to any claim.  The employer needs to pay full pay during the notice period but can recoup furlough monies under the Job Retention Scheme.

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