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Published 6 October 2020
In July, the Government announced that it would pay a bonus to employers who retain employees who have been furloughed until January 2021. The Treasury Direction providing the legal underpinning for the Job Retention Bonus Scheme has now been published, together with two new HMRC guidance documents:
The key points of the Scheme are:
- 6 November to 5 December 2020
- 6 December 2020 to 5 January 2021
- 6 January to 5 February 2021
An employer will be eligible to claim the JRB in respect of employees of a previous business which were transferred to the new employer if either TUPE applies, or the PAYE business succession rules apply to the change in ownership.
To claim the JRB for employees that have been transferred, the business must have furloughed and successfully claimed for them under the CJRS, as their new employer. The employees must also meet all the relevant eligibility criteria for the Job Retention Bonus Scheme, which means that the employer will not be able to claim the JRB for any employee who transfers to them after the CJRS closes on 31 October 2020.
Employers who are considering making furloughed employees redundant should consider the Government support available. While the sums involved in the JRB may not be sufficient to save jobs, the Government’s hope will be that some businesses will combine it with the Job Support Scheme to mitigate job losses. It will be prudent for employers to show they have at least considered the possible additional revenue that the these schemes could bring in as part of the alternatives to dismissal.
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