The Department of Labour has recognised that the manner in which they have been paying out the benefit for TERS is at odds with the intention originally.
The FAQ issued today clarifies that an employee is entitled to their full benefit (in terms of the calculation as a percentage of salary of between 60% and 38% of salary up to a maximum benefit of R R6 638.40).
All those companies who have paid their employees less than their normal salary can now submit claims. Those who did submit and were rejected will automatically be reassessed and payment will be made to the employer.
The calculation which applies to this is Scenario 2 in the pamphlet COVID 19 FAQ.
The TERS regulations were amended on 16 April 2020. Essentially they have recognised that many employers have allowed employees to take annual leave during the lockdown. They are now allowing such employers to claim the TERS benefit and when the UIF payment is made to the Company to then credit the employee for the leave taken proportionately.
We are urging all employers who have applied to contact us. We have agreed with the Chief Inspector of UIF to be the communication hub for all our clients so that UIF has one point of contact if they have any queries. The process for queries is for them to issue compliance orders and we want to streamline this process as effectively as possible. If you want to be added to the list, please fill in the form below.
Disaster Management Act
Regulations for the Disaster Management Act were passed on 18th March 2020 (Regulation 318). These regulations were amended on 25 March 2020 (Government Gazette 43148), 26 March 2020 (Government Gazette 43168), 1 April 2020 (Government Gazette 43199) and 16 April (Government Gazette 43232). The document on the website combines all these regulations for ease of use.
The Department of Employment and Labour has made money available to companies who are experiencing difficulty paying staff as a consequence of COVID-19. They will also pay benefits to employees who are ill as a consequence of COVID-19. To streamline the process they will sign an MOA with the company and once information has been provided they will pay the company who can then reimburse the employees.
Unfortunately, the benefits remain the same, i.e. The salary benefits will be capped to a maximum amount of R17712, 00 per month, per employee and an employee will be paid in terms of the income replacement rate sliding scale (38 % -60 %). They have said that there will be a minimum amount of R3500-00 which is the current minimum salary. This means that anyone earning above R17 712-00 will only be reimbursed at R6 730.56.
If you would like us to assist with the claiming process please contact the consultant you normally deal with or contact Debbie Mason here.
According to the Employment Equity Amendment Act 2013, a designated employer must submit a report to the Department of Labour once every year.
Please remember that a designated employer is defined as:
an employer who employs 50 or more employees;
an employer who employs fewer than 50 employees, but has a total annual turnover that is
equal to or above the applicable annual turnover of a small business as defined in the table below:
Sector Or Subsections In Accordance With The Standard Industrial Classification
Total Annual Turnover
R 6 million
Mining and Quarrying
R 22.50 million
R 30 million
Electricity Gas and Water
R 30 million
R 15 million
Retail and Motor Trade and Repair Services
R 45 million
Wholesale Trade, Commercial Agents and Allied Services
R 75 Million
Catering Accommodation and other trade
R 15 million
Transport, Storage and Communications
R 30 million
Finance and Business Services
R 30 million
Community, Social and personal services
R 15 million
Failure to comply could result in a fine of between R 1 500 000.00 and R 2 700 000.00 or between 2% and 10% of turnover – whichever is greater.
In the event that you would require our assistance in the submission of the required reports and in order for Connold and Associates to accurately determine whether your company is classified as a designated employer, please can we request that you provide Tessa at our offices with:
The projected number of employees on your payroll as af 1 August 2019
The company’s current annual Turnover
Confirmation of Sector company is registered under
Please contact Tessa Lourens at our office if you would like us to assist with the relevant submission of your EE report to the Department of Labour.
The Department of Labour has
posted a letter on their website urging claimants who registered work -related
injuries or illnesses before 1 August 2014 and which still remain open to ensure
that all documents still outstanding are submitted before 31 October 2019. They have indicated that any claims which are
not resolved by this date will be repudiated and closed.
If you are aware of any
outstanding claims that are still awaiting medical reports or please ensure
that they are sent to the Workmen’s Compensation Commissioner. We have attached the letter with the contact
details to be used to our website.
Connold & Associates are launching a Leadership Development Program this month (20 June 2019)
There are many examples of employees in supervisory and management positions who are uncertain of how to lead their teams to greater performance. This program integrates through theory and experiential learning, the essential components of leadership in business today.
The program enables Managers to integrate their knowledge and practice in Leadership Development. The content is spread over a 10-month period. Participants are expected to attend a 1-day program per month. The program covers 5 important principles of leadership: Understanding Business, Introduction to Management, Performance Management, Leadership and Industrial Relations.
NEW POSTER REQUIRED FOR
THE BASIC CONDITIONS OF EMPLOYMENT ACT
started with four new pieces of legislation in the Human Resource Space as well
as new regulations for UIF and new rules for the CCMA. Over the next few weeks Connold &
Associates will be sending out information with regard to the new legislation
in a series of blogs. The intention is
to inform you of the changes, particularly where changes need to be made to
policies and procedures.
legislation promulgated on 1 January 2019 is:
The National Minimum Wages Act
The Labour Law Amendment Act
The Labour Relations Amendment Act
The Basic Conditions of Employment
We will begin with:
The labour law amendment act
the EFFECT ON THE BASIC CONDITIONS OF EMPLOYMENT ACT
Labour Law Amendment Act was introduced by a private member of parliament (Mrs
C Dudley) and introduces new leave classifications in the Basic Conditions of
Employment Act which are:
This is available for any employee who has adopted a child under the age of two years in an adoption process which complies with the Children’s Act of 2005. The leave granted is ten weeks dated either from the day the adoption order becomes final or the day the child is handed over to the care of the employee by a competent court, pending the finalisation of the adoption.
The employee must notify the employer
one month prior to the adoption (or as soon as is reasonably practicable) of
the date on which the employee will embark on leave and the date that they will
return from leave.
This is available for any employee who is
a commissioning parent in a surrogate motherhood agreement in terms of the Children’s
At of 2005. The leave granted is also ten weeks dated from the day the child is
The employee must notify the employer
one month prior to the anticipated birth of the child (or as soon as is
reasonably practicable) of the date on which the employee will embark on leave
and the date that they will return from leave.
This leave replaces family
responsibility leave for the reason of the birth of a child (paternity leave)
which has been deleted from the Basic Conditions of Employment Act.
10 days parental leave is granted to:
father of a child
of the adoptive parents of a child (the other parent will apply for adoption
of the parents in a surrogate motherhood agreement (the other parent will apply
for commissioning leave).
In implementing this leave into the workplace, we need to consider the following:
As with maternity leave, all this leave, including parental leave, is not paid by the company, but claims for payment can be made through the Unemployment Insurance Fund.
If you have a policy that pays towards maternity leave, we need to consider how to fairly accommodate adoption and commissioning leave in a similar way
Essentially, male employees are losing a three day fully paid paternity leave for an unpaid ten-day parental leave. What is the fair way of accommodating our fathers going forward?
It is important to note that this leave
is now in place and that employers need to include it in letters of appointment
and in leave policies with effect from the promulgation date. We also need to
update the posters on the wall.
Please contact our associates if you
have more questions.
Our 2019 training schedule for our SABPP accredited courses is now available. All our courses can be viewed here (Training Schedule 2019) or in the table below. All courses may all also be structured as in-house company-specific programmes.
You can also find more information on each of our training courses in the link below or by contacting Tessa Lourens using the contact form below or by calling us at our office on 011 452 1707.
Connold & Associates are hosting a Leadership Development Programme in Cape Town This Month (March 2018 dates to be confirmed).
There are many examples of employees in supervisory and management positions who are uncertain of how to lead their teams to greater performance. This programme integrates through theory and experiential learning, the essential components of leadership in business today.
The Programme enables Managers to integrate their knowledge and practice in Leadership Development. The content is spread over a 10-month period. Participants are expected to attend a 1-day programme per month. The programme covers 5 important principles of leadership: Understanding Business, Introduction to Management, Performance Management, Leadership and Industrial Relations.