Article 3 of 4 | COVID-19 (CORONAVIRUS) EMPLOYMENT ISSUES

COVID-19 (CORONAVIRUS) EMPLOYMENT ISSUES

UIF Assistance If The Operations Are Closed Down

Temporary employee relief scheme

25. The UIF may fund distressed companies directly by means of the temporary employee relief scheme allowance.

26. To qualify, a company must prove that:

26.1 it closed operations;

26.2 as a result of the coronavirus; and

26.3 suffered financial injury.

27. The UIF has provided a dedicated line that will assist all employers/employees/ bargaining councils on 012 337 1997, or relevant key information or changes will be placed on the department’s website (www.labour.gov.za) and the application process may be obtained via covid19ters@labour.co.za.

28. If a company is successful, its employees may receive salary benefits up to a maximum of R17 712.00.

Disaster management fund

29. If the employer is forced, as a direct result of the coronavirus pandemic, to close its business for a period and send employees home, this will constitute a temporary layoff.

30. If the employer is unable to pay its employees during this period, the employer can apply for this benefit from the UIF.

31. This benefit will be at a flat rate equal to the minimum wage (R3 500.00) per employee for the period of the closure or a maximum period of three months.

32. In summary, the differences between the temporary relief scheme and national disaster benefit, as indicated above, are as follows:

Temporary relief scheme National disaster benefit
Background detail
  • Payment of the benefit to contributors who have lost income due to the pandemic
  • Payment of benefit to employers closing down operations (including the mandatory lockdown) and implementing temporary layoffs
Period
  • For a maximum of three months
  • Limited to the period of the shutdown or maximum of three months, whichever is the longer
Submission requisitions
  • Employer must be registered with the UIF
  • Employer must submit the following documents:
    – letter of authority
    – MOA between UIF and the employer
    – completion of prescribed template detailing employee details, e.g. employment history, salary and banking details
    – if there is a bargaining council, MOA between the employer and such council
  • Employer must submit and provide the following documents to the UIF processing centre:
    – UI 19
    – UI 2.1
    – UI 2.8
    – UI 2.7
    – copy of EEID
    – confirmation form letter from employer regarding the temporary layoff due to the coronavirus
Payment terms
  • This benefit is de-linked from the normal UIF benefits
  • UIF will only pay for the cost of salary (calculated using UI benefit sliding scale (38%-60%) for employees during the closure of the business)
  • If the employee’s income in terms of the above scale falls below the minimum wage of the sector concerned, the employee will be paid a replacement income equal to the minimum wage of the applicable sector, as determined per sectoral determination
  • The benefit is capped at R17 712.00
  • In the scenario where the employer is unable to pay its employees:
    – the payment is not linked to the UIF benefit structure
    – the benefit is a flat rate of R3 500.00 per month, per employee, for the period of the shutdown or three months, whichever is the longer
  • If the employer implements reduced or short time:
    – the payment is linked to the UIF benefit structure
    – the payment is calculated at the difference between what the employer is paying and what the employee usually earns (the difference in value will be used to calculate the UIF benefit applicable using the normal calculations based on credits available to the employee)

 

…/continues in article 4 of 4

During the recent live broadcasts of the SALLRs’ 36th annual seminar, held from Wednesday 12 August 2020 to Thursday 3 September 2020, the SALLR team conducted various surveys covering a variety of issues and, set out herein, are the combined results obtained from such five live broadcast sessions. Kindly note that the percentages have been rounded off.

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What to expect during the SALLR live broadcasts.