Breaking News (2020/07/20):
What to Do After TERS
It seems that the Department of Labour is not going to extend the Temporary Employee Relief Scheme (TERS), beyond June 2020, although many companies are not yet able to have their employees return to work. Many companies have not yet been paid for the June TERS as submissions have only really been possible since the implementation of new security measures were completed for the online system on Sunday 12 July 2020.
Please note that if you had submitted a claim before this date (for April, May or June) and it has not yet been processed, you must enter your Company Registration Number and update the system. If you do not, none of the outstanding claims will be processed.
Where employees have not yet been able to return to work or where they are working a very reduced short time, they are able to claim the Reduced Work Time Benefit. This benefit was promulgated on 1 November 2019 and it is this legislation which allowed for the TERS benefit.
The Unemployment Insurance Act says in clause 12(1B):
A contributor employed in any sector who loses his or her income due to reduced working time, despite still being employed, is entitled to benefits if the contributor’s total income falls below the benefit level that the contributor would have received if he or she had become wholly unemployed, subject to that contributor having enough credits.
This means that employees will only be eligible if their earnings fall below the amount, they have been receiving from TERS and then they will only be given the difference between their actual earnings and the benefit from TERS.
Example: an employee earning R6 000-00 per month is currently working 2 days per week.
- His monthly earnings during short time will be: R2 397.78
- His benefit from the UIF Fund for the month of July would be: R3 657.12
- UIF would pay him the difference, i.e. R1 259.34
If they earn more than R3 657.12 then they are not eligible for a benefit.
This benefit is only going to be truly beneficial for employees who are laid off and not earning at all as they will be able to claim the same benefits as they did from TERS.
However, this benefit does use the UIF Credits. This means that an employee claiming Unemployment, Ill Health or Dependents Benefits uses credits. They get one day of UIF for every 4 days that they have contributed to a maximum benefit of 12 months UIF Payments. In order to “earn” the full benefit an employee must have contributed for 48 months. However, if the employee enters a claim and then starts working again, they start earning back their credits.
The UIF benefit for retrenched employees will pay out the same amount, so there is no UIF benefit for being retrenched at this time.
How to Claim Reduced Working Time Benefits
|Step1:||Employers must complete the UI19 form for their employees citing code 17 (Reduced Working Hours) as the reason for not earning.|
|Step2:||Prepare a letter stating that the employee is not able to return to work or is earning short time as a consequence of the COVID 19 Disaster Management Act Lock Down.|
|Step3:||Complete the Remuneration whilst in employment Form UI2.7.|
Employee’s Responsibility – On line (ufiling)
|Step1:||Use Unemployment Benefits tab to claim Reduced Work Time On-Line|
|Step2:||Use cover sheet of “other” to scan a UI 19, UI 2.7, a letter from the employer confirming a shutdown and copy of identity document under or email the supporting documents to online.BCP@labour. gov.za fax to E-Mail 0864397297|
|Please Note: The subject line for scan/email must be the employee’s identity number or the Case Number once one has been allocated.|
|Step3:||Assessment to be conducted once claim is complete/correct/valid and applicant will be advised of the outcome via SMS/email.|
|Step4:||If claim is approved, employee will be advised to submit a request for payment. Submit request for monies to be paid into a Banking Account, UI2.8|
|Step5:||If further claims are required submit Continuation of Payment UI6A (COP).|
|Step6:||Applicant is paid|
Employee’s Responsibility Manual Claims
|Step1:||Download and complete the UI2.1 (application for Reduced Work Time and, UI 2.7 and UI 2.8 forms.|
|Step2:||Attach the abovementioned forms, a letter from the employer confirming a shutdown and copy of identity document as well as a UI19 from the Employer.|
|Step3:||Reason for termination code must be 17 (Reduced working hours)|
|Step4:||Email all the attachments to the relevant province|
MAILBOX FAX TO EMAIL NUMBER
|Office||Email Address||Fax Number|
|Gauteng||Germiston.BCP@labour.gov.za||086 439 7295|
|Gauteng||Johannesburg.BCP@labour.gov.za||086 439 7294|
|Gauteng||Preotia.BCP@labour.gov.za||086 439 7290|
|Kwa-Zulu Natal||Petermari.BCP@labour.gov.za||086 439 7296|
|Kwa-Zulu Natal||Durban.BCP@labour.gov.za||086 439 7297|
|Eastern Cape||EastLondon.BCP@labour.gov.za||086 439 7299|
|Eastern Cape||Portelizabeth.BCP@labour.gov.za||086 439 7298|
|Western Cape||Capet.BCP@labour.gov.za||086 439 7300|
|Western Cape||George.BCP@labour.gov.za||086 439 7301|
|North West Province||NorthWest.BCP@labour.gov.za||086 439 7302|
|Limpopo||Limpopo.BCP@labour.gov.za||086 439 7303|
|Mpumalanga||Mpumalanga.BCP@labour.gov.za||086 439 7304|
|Free State||Mpumalanga.BCP@labour.gov.za||086 439 7305|
|Northern Cape||NorthernCape.BCP@labour.gov.za||086 439 7309|
Alternatively, the employee can visit their nearest labour centre taking all the documentation with them. More details are listed in the Electronic Claims Pamphlet which also outlines how to claim for ill health or unemployment benefits.
Remember that when employees die in service, their dependents are entitled to a benefit from UIF which is equal to the full 12-month benefit that they would have received if they had been unemployed.
A word of Caution: Employees who have been claiming TERS and have tried claiming unemployment or maternity leave benefits are finding that they cannot submit a claim until the TERS claims have been finalised. It may be best to wait until all the TERS claims have all been paid out before making application.
Please contact the office if you have any questions or require any assistance.
Important Documents and Links
Please note all security guards and staff who are required to continue to work during lockdown must carry the permit in the link below
UIF Reduced Work Time Benefit
- UI2.1 – Application for unemployment benefits
- UI2.7 – Remuneration whilst in employment
- UI2.8 – Authorisation to pay benefits into banking account
- UI6 A – Confirmation of unemployment status
- UI19 – Employers declaration
UIF ters submission Forms
- COVID-19 TERS: How to Apply for UIF COVID-19 TERS Benefit May – June
- COVID-19 TERS: Easy Application Guide
- COVID-19 TERS: FAQ
- COVID-19 TERS: What happens after Application
- COVID-19 TERS: Online Submission Guide
- COVID-19 TERS: National Disaster Payment – Excel Template
- COVID-19 TERS: Guidelines for Converting Excel Spreadsheets to Comma Separated Value (CSV)
- COVID-19 TERS: Combined Regulations
- COVID-19 TERS: Amended Covid-19 Directives – 2020/04/16
- COVID-19 TERS: Easy Aid
- COVID-19 TERS: Full Regulations
- UIF Easy Guide for online claims
- Amended COVID-19 Temporary Employee/Employer Relief Scheme – 2020/04/08
- Regulations in force during Lockdown – Level 3
- Regulations in force during Lockdown – Level 4
- Presidential Statement – 23 March 2020
Debt Relief Finance Scheme
The Department of Labour
- COVID-19 – Occupational Health and Safety Measures in Workplaces – 2020/04/29
- Workplace Preparedness: COVID-19
- Compensation for Occupational Injuries and Diseases