What is the Coronavirus Job Retention Bonus Scheme?
Rishi Sunak announced the new Coronavirus Job Retention Bonus Scheme at the start of his summer economic update earlier today, Wednesday 8 July.
The policy was announced in order to protect jobs amidst the forecast economic downturn, as the coronavirus job retention scheme, commonly known as the furlough scheme, winds down to finish at the end of October.
The new bonus scheme will pay employers a bonus for retaining staff who return from furlough.
How will the job retention bonus work?
The scheme will pay employers a bonus of £1000 per qualifying employee.
Who is eligible for the job retention bonus?
Qualifying employees will have to:
- have been paid a minimum of £520 per month
- be employed through to the end of January
- have previously been furloughed
What is the Kickstart scheme?
The chancellor also announced a new new 'Kickstart' scheme to get young people aged 16-24 at risk of long-term unemployment into jobs.
Employers eligible to be paid directly to create jobs. Scheme will cover 6 months' wages and a sum to cover overheads associated with employment.
We will update as further details become available.
New support for businesses taking on apprentices
As part of the recovery plan, Rishi Sunak announced new measures to support apprenticeships.
The initial announcement claimed that a payment of £2,000 would be made to companies to encourage them to hire apprentices.
Businesses will also be eligible for £1,500 for apprentices over the age of 25.
Again, we will provide full details as they are provided.
What else was announced in the summer economic update?
There was an announcement of the anticipated Stamp Duty Holiday, which can be read about here.
VAT cuts for the hospitality sector, and an ‘eat out to help out’ scheme were also announced, as well as measures to help the green construction sector.
Head of Employment Paul Burton on the job retention bonus:
The new job retention bonus scheme will be welcome to employers, but the big question is – will it be enough?
Employers will have to pay towards furlough from August to October and then retain employees returning from furlough for at least three months after that to qualify for the bonus.
It may unfortunately be the case that some employers will see the costs being too high to receive £1,000 per employee after January, particularly if they are struggling for work. With that being the case, many are predicting already that there will still be many redundancies later in the year.
Redundancy and the furlough scheme
If you require any assistance with carrying out redundancies in accordance with the law please do contact us.
We do offer a fixed-fee redundancy pack which includes a step-by-step guide, sample letters and telephone and email advice as you go through the redundancy process.
Please note the fixed-fee pack does not include redundancies of 20 or more people, which require specific collective consultation. We provide assistance for these on a separate basis.
Furlough scheme timeline
You can download our furlough scheme timeline by clicking below.