The British Government has announced a ‘job retention bonus’ for businesses who bring back employees from furlough and keep them at work through to the end of January 2021. In a statement delivered by Chancellor Rishi Sunak, employers and businesses will receive a one-time £1,000 bonus for every employee that they keep during the stipulated period.
For employers to benefit from this bonus, Mr Sunak emphasised that it is vital they pay a monthly sum of at least £520 to every employee until the end of January. The continuity of the monthly wages will serve as proof that they do not only keep their employees for the sake of the £1,000 but to give them the opportunity to engage themselves in remunerating jobs.
According to the Chancellor, the “job retention bonus” is aimed at supporting employers to lower the retention rate and tackle the rise in unemployment. He also reiterated that such initiative will help in maintaining as many jobs as possible adding, “our message to business is clear: if you stand by your workers, we will stand by you’.
This collaboration is described as essential and will help in boosting the economy against a sharp decline by 25% in the UK. The decline came as a result of the lockdown across the country which among other measures, are geared towards slowing the spread of COVID-19. The value of the 25% is said to be equal to the growth of the economy in the previous 18 years. Mr Sunak further added that in as much as the furlough scheme cannot go on forever, the British Government will do everything possible to protect the plight of workers and businesses.