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Rishi Sunak announces £1,000 'Job Retention Bonus' for re-engaged furlough workers

Rishi Sunak announces £1,000 'Job Retention Bonus' for re-engaged furlough workers

The Chancellor, Rishi Sunak, annouced today good news for employers - a £1,000 bonus for re-engaged workers taken back into work from Flexible Furlough leave - the Coronavirus Job Retention Scheme (CJRS). 

The payment applies for every worker they re-engage back from furlough who continues in work until January 2021.

Eligible employees must be continuously employed until at least January next year and the employee must be paid at least an average of £520 in each month from November to January, between the end of the job retention scheme (31 October) and the end of January 2021.

This new job retention bonus will reward employers for retaining staff in the important months after the CJRS ends. It is intended that the bonus payment will help avoid redundancies and is a gesture in the right direction to continue to support employers who would have had no salary safety-net after CJRS ends. 

However, the £1,000 payment per employee is unlikely to cover all furloughed employee salaries and associated costs (NI and pension contributions), some earning much more than that, but it is a sigh of relief for many employers who would have faced no financial support heading into a uncertain winter.

Helpful Articles: 

BBC News - 8 July 2020

Flexible Furlough Scheme  - 1 July 2020

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Coronavirus:  We are pleased to announce we are Open for Business

Even during Leicester’s most recent, extended lockdown, you can be assured that it is ‘Business as Usual’ at Lawson-West and we're here to help you with your legal needs. 

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