COVID-19: Employment Law Update 9: The Coronavirus Job Retention Bonus Scheme and The Job Support Scheme Extension

Updated:  2 November 2020

The Job Support Scheme Extension which was due to commence on 1 November 2020 has been postponed due to the Government announcing a second national lockdown and extending the Coronavirus Job Retention Scheme until December 2020.


The Coronavirus Job Retention Bonus Scheme

The Government has announced that from 15 February 2021 to 31 March 2021 eligible employers will be able to claim a one off-taxable payment of £1,000 for every employer that was previously furloughed and has been kept in continuous employment up until 31 January 2021.

The employee must not be on notice for redundancy or retirement on 31 January 2021.  The employer does not have to pass the £1,000 to the employee.

To be eligible the employer must have paid £1,560 to the employee between 6 November 2020 and 5 February 2021.  It is expected that the Government will announce further guidance in January 2021 on how employers can claim the bonus.

The Job Support Scheme Extension

The Government has also confirmed that they will pay two thirds of employees’ salaries, up to a maximum of £2,100 per month, for any business that has to close due to local or national COVID-19 restrictions.  Employers would only need to pay their employees’ National Insurance Contributions and pension contributions under this scheme.

For businesses to be eligible, the employee must be off work for a minimum of seven consecutive days.

The scheme will run for six months commencing on 1 November 2020 with a review date expected in January 2021.

Disclaimer – The above facts are accurate as of 11.00am on 13 October 2020.

For advice on this, or any other employment matter, contact the employment team on 01905 723 561 or email: or

Added: 02 Nov 2020 16:11

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