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Measures available to mitigate the financial deprivation suffered by employees during the lock-down
On 26 March 2020, a directive was issued by the SA Government acknowledging an employer's right to insist that employees take annual leave. However, the directive encourages employers to make use of the Covid-19 TERS relief
UIF BENEFIT to assist with salary payments of employees
The Minister of Employment and Labour has announced measures that the Department will put in place as required under the current special circumstance relating to the Corona virus (COVID-19) and its impact on UIF contributors. The Unemployment Insurance Fund will compensate affected workers through a new “Temporary Employer / Employee Relieve Scheme” and its existing the Illness, Reduced Work Time and Unemployment benefits.
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UIF BENEFITS
Claims made for : reduced hours of work, permanent unemployment, illness benefits, death benefits
Benefits claimed : The benefit will be calculated in terms of the income replacement rate sliding scale of 38 % (for high earners) up to 60 % (for low earners) as provided in the Unemployment Insurance Act, subject to the maximum threshold as determined from time to time.
Important note : Employee needs to have credits (1 day for every 4 days worked) in order to receive benefit, lower earners could result in payment of lower than minimum wage.
Process to follow : Forms need to be completed per employee and emailed to region UIF department email on employees behalf.
TERS BENEFITS
Claims made for : Business shut down, where all or some of staff are not able to work. Claims are made for full or part of salary not received from employer. If annual leave has been paid out claim against annual leave can be submitted and benefit received can be credited against leave giving staff leave back.
Benefits claimed : The benefit will be calculated in terms of the income replacement rate sliding scale of 38 % (for high earners) up to 60 % (for low earners) as provided in the Unemployment Insurance Act, subject to the maximum threshold which is currently R17712. Despite conflicting reports, our understanding is that the maximum benefit for a high earner would be 38 % of R17 712 a month, which amounts to about R6 730 a month.
Important note : Employees do not need credits in order to receive benefit from fund, payments made will not be less than minimum wage.
Process to follow : Blank email sent to Covid19ters@labour.gov.za to receive an autoreply with latest documents and processes. Process now is to complete a schedule with employee details, MOA agreement and letter to be signed and employer bank confirmation documents. 2 options available for submitting claim either all documents completed is sent to Covid19 UIF claims@labour.gov.za via amail or online application process is followes which can be done by following link https://uifecc.labour.gov.za/covid19/,
REDUCED WORK TIME :
Where a Company shuts down for a certain period or implements Reduced or Short Time. Benefits payable is the difference between what employer pays and normal UIF benefits payable should an employee lose employment. For every 4 days worked the employee accumulates 1 credit day, and maximum credits days payable is 365 for every four completed years. Benefits are paid as per prescribed benefits structure from 239 to 365 days
Where a Company shuts down for a certain period or implements Reduced or Short Time.. Benefits payable is the difference between what employer pays and normal UIF benefits payable should an employee lose employment.
DOCUMENTS
TEMPORARY CLOSURE OF BUSINESS
The employer may decide, as a direct result from the current Corona virus (COVID-19) pandemic to close their business for a period and send employees home. This constitutes a temporary lay-off. If the employer cannot pay his employees for this period, the employer can apply for the Temporary Employer / Employee Relieve Scheme from the UIF.
It applies where the employer has temporarily closed its operations, completely or partially, as a direct result of Covid-19. Temporary lay-off means a reduction in work following a temporary closure of business, whether total or partial, due to Covid-19 pandemic for the period of the National Disaster.
DOCUMENTS
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