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Primark and John Lewis expected to turn down job retention bonus

By Huw Hughes

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Management

John Lewis and Primark are both reportedly set to turn down government money to bring furloughed staff back to work.

The Jobs Retention Bonus, announced last week, allows UK employers to receive a one-off bonus of 1,000 pounds for each furloughed employee that returns to work. To be eligible, the worker must still be employed at the business by 31 January 2021 and must earn on average at least 520 pounds per month.

Irish fast-fashion company Primark said it will not take advantage of the scheme. The company is thought to have furloughed around 30,000 workers during lockdown, meaning the company could receive a payout of 30 million pounds.

Companies turn down job retention bonus

“I can confirm that Primark does not intend to take advantage of support under the job retention bonus announced by the chancellor,” a spokesperson for Primark’s parent company ABF said in a statement.

“The company removed its employees from government employment support schemes in the UK and Europe in line with the reopening of the majority of its stores. The company believes it should not be necessary therefore to apply for payment under the bonus scheme on current circumstances.”

John Lewis has decided to do the same, according to The Telegraph. The British department store chain furloughed around 14,000 staff, meaning it could receive 14 million pounds through the scheme.

The company last week confirmed that it would not reopen eight of its 50 stores following lockdown as it looks to streamline its operations. The company said stores in question were already “financially challenged” prior to the pandemic. Approximately 1,300 employees have now entered into consultation.

Picture credit: FashionUnited

John Lewis
Primark