Tag: Unemployment Insurance Fund (UIF)

As a result of the COVID-19 pandemic, the current business environment can truly be defined as volatile, uncertain, complex and ambiguous (VUCA) – a constant state of flux. No business is immune to these factors, regardless of size or industry.

Weary, weary, weary, weary ends my day! This is what I hear from the members of our organisation. They say that looking for the job you can’t find makes you more tired than doing a day of hard work. Working hard, knowing that tomorrow the job will still be there, waiting for you, gives you hope and energy.

The Minister of Finance, Tito Mboweni, delivered his much anticipated Medium-term Budget Policy Statement (MTBPS) on Wednesday, 28 October 2020. Hard choices and reform implementation are key to achieving five-year stabilisation plan.

An interview with Lauren Salt, Executive, Employment, ENSafrica, and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing the most recent changes to the Unemployment Insurance Fund (UIF) Temporary Employer/Employee Relief Scheme (TERS), also referred to as UIF TERS - specifically the new directive 2.3.1,  the implications for employers claiming benefits and the future of the COVID-19 relief scheme.

With the increasing number of COVID-19 infections, employers must deal with employees who test positive for the virus, those who come into contact with individuals who test positive, and those who present with COVID-19 related symptoms. It is therefore important for employers to understand when sick leave must be used.

With the easing of the nationwide lockdown in response to the COVID-19 pandemic through the Government's 'Risk Adjusted Strategy' (comprising of five lockdown levels), more and more business can lawfully operate again. As a result, employees will be returning to work and employers will be obliged to remunerate them again.

The economic impact of COVID-19 is being felt increasingly by individuals and businesses across the country. The simple fact that the Unemployment Insurance Fund (UIF) has been swamped with applications and already paid out well over R4 billion in UIF claims is clear evidence of the strain being felt by many households.

The Supplementary Budget 2020 was tabled to Parliament on 24 June 2020 by South African Finance Minister Tito Mboweni.

To date, the Unemployment Insurance Fund’s Temporary Employee Relief Scheme (TERS) has paid over R15,7-billion to 2,288,295 in its COVID-19 relief payments. Many employers, however, are still having their applications rejected. Small, seemingly insignificant discrepancies in submissions are seen as mistakes and will lead to the submission being rejected.

President Cyril Ramaphosa presented the five-level, risk-adjusted strategy that will guide South Africa’s emergence from lockdown. As the finer points of the strategy were shared, it became clearer how - and when - certain sectors will once again gear up into activity.