LATEST RULES: Has Your Company closed due to Covid-19? Claim for your Employees now!
MD’s email sent out for this post | https://bit.ly/2WQFrv3
The UIF disaster benefit will now be run through TERS system – it is longer a ‘side option’ for UIF itself and the whole UIF Easy-guide has now been removed from the Labour.gov.za website.
Covid-19 Temporary Relief Scheme:
- Should an employer as a result of COVID-19 pandemic close its operations for 3 months or lesser period and suffer financial distress, the company shall qualify for Covid-19 Temporary Relief Benefit.
- Benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations.
- Salary benefits will be capped to a R17 712 maximum per month per employee and an employee will be paid in terms of the income replacement rate sliding scale (38%-60%) per the UI Act.
- Should an employee’s income in terms of the income replacement scale fall below the minimum wage of the sector concerned, the employee will be paid a replacement income equal to the minimum wage of the respective sector concerned.
- For the company to qualify for the temporary financial relief scheme, it must satisfy the following requirements:
- The company must be registered with the UIF,
- The company must comply with the application procedure for the financial relief scheme; and
- The company’s closure must directly be linked to the Covid-19 Pandemic.
- Step 1 – Application process
- Companies are to report their closure to Covid19ters@labour.gov.za – to follow the automated email response outlining the application process.
- Employers are required to furnish the UIF with the following documents:
- Letter of authority from the company (on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company).
- Signed Memorandum of Agreement (MOA) from the employer or Bargaining Council with the UIF.
- Prescribed template (sent by TERS) which will require critical information from the employer.
- Evidence/payroll as proof of the last 3 months employee salaries (all staff).
- Confirmation of bank account details – certified latest bank statement.
(All documents submitted will be subject to verification)
- Any employee who is being paid by the employer during this period is not entitled to this benefit – this is a comment in the Government Gazette but nothing mentioned in the Easy-aid document.
- Step 2 – Submission of documents
- Submit/transmit all documents as required in Step 1 to UIF via dedicated mailbox Covid19claims@labour.gov.za
- NB: If the spreadsheet is complete; valid and accurate, it will be dumped into an automated calculator to produce the benefit amount due to the beneficiaries and the total amount to be transferred to the employer or bargaining council (or whichever method agreed).
- Step 3 – Conclusion
- Conclusion of the MOA between the parties.
- Payment will only be effected after the MOA is signed off between the Fund and the Employer/Bargaining Council.
- Enquiries – The UIF has provided a dedicated line that will assist all employer/employees/Bargaining Councils on COVID19TERS. The contact number is 012 337 1997.
Please contact me for assistance with any of the above.
For further details of this and other Covid-19 information,
please see our dedicated website page on
Example of TERS information required (TERS application)