Most employers are aware of the TERS scheme that provided emergency funding since March 2020. However, this scheme has now been stopped, with the final payment period being 15 October 2020. This left still some employers and employees in the dark affected by the closure due to the COVID-19 pandemic whose working hours have been reduced or are forced to stay at home due to work stoppage.
With the TERS scheme that ended, the affected employees will have to claim individually from UIF for reduced working hours. They will be compensated through the standard UIF benefits as per the Unemployment Act 63 of 2003 as amended.
Normally, an employee submits a claim for this benefit with the assistance of the employer. However, according to the Department of Labour’s website, the UIF system has been enhanced to enable employers to submit bulk applications on behalf of employees and designed a spreadsheet to make this submission easier.
The simplified process allows employers to submit information to the Fund on behalf of employees that will be used to create and process applications. This will be done by completing a spreadsheet with employee details and submit to UIF.
UIF will process applications without further documentation for the following categories of
applications:
• Mass or Bulk terminations;
• Reduced Work Time/ Temporary Layoff scheme (section 12.1B) with 17 as reason of termination.
Please note that the standard methods are still available for individual employees to lodge applications through email, Fax, U-filing (online). Employers are urged to use U-filing, Edec and digital UI19 to update employment history of employees.
All months where an employee received a benefit from TERS must be declared as non-contributor and zero salary (R0) declaration.
An easy guide and other relevant documents to assist employers with the claim process have been placed on the Departmental website: http://www.labour.gov.za/reduced-work-time-benefit
Should you have any enquiries about this new process, you are welcome to contact your nearest SEESA for assistance.
About The Author:
Hendrik van Niekerk started his career at SEESA in 2021 and is currently working as a Senior Legal Advisor at SEESA’s Pretoria office. He obtained his LLB degree from the University of Pretoria in 2008 and was admitted as an attorney in 2010.