Job Retention Bonus – Good or Bad

In the announcement from the Chancellor on 8 July 2020 which heralded to create jobs, protect jobs and support businesses and much more…

Whilst the announcement covered many areas one area we are always keen to hear about is employment and job retention and never has it been more important.

What is the Bonus 

If we take a closer look at the plans for the ‘job retention bonus’ announced by Sunak for Employers of £1k for employees; what exactly does that mean:

• As an Employer you need to have accessed the CJRS Scheme
• Each Employee needs to be retained and continuously until at least 31st January 2021
• Employees need to earn at least £520 per month (above the Lower Earnings Limit) on average for Nov, Dec and Jan
• As an Employer you will claim the bonus from February 2021 once accurate RTI data remains so up to the 31 Jan 2021.

With many businesses already reducing their headcount up to July this is of little comfort to them, in addition, now with flexible furlough and contributions faced by Employers as the scheme is tapered off and then finally whether jobs can be sustainable up to that time, the access to the bonus is questionable for many Employers.

 

What else is on Offer?

Sunak also announced plans for a £2b ‘kickstart’ fund that will help and fund six-month job placements, this will be aimed at young people at risk of long-term unemployment.

A helping hand with this will benefit the younger generation no doubt but what perhaps for everyone else, it could lead to and create a growing skill gap.

 

For Employers an offer of a grant to employ an Apprentice will also be available, the full guidance not yet released:

• up to 25 years old £2k
• over 25 years old £1.5k

On the face of it a great, welcoming incentive and whilst an Apprenticeship can be accessed at any age, it most certainly attracts the younger generation, my fears are for anyone who falls outside this mould and or cannot afford to undertake an Apprenticeship.

More details in relation to the schemes and how they will work will be released on Gov.uk in a full publication in the Autumn.

If you need any assistance in relation to the CJRS, Furloughing, Redundancy or any other HR or Employment Law matter then get in touch: 01254 467156