CRS News Flash 24 March 2020 – SOUTH AFRICA – COVID-19 Temporary Employer and Employee Relief Scheme

MARCH 2020 – SOUTH AFRICA

COVID-19 Temporary Employer and Employee Relief Scheme

It is important that employers note the following:

Temporary Employer and Employee Relief Scheme (TERS)

The Minister of Employment and Labour has announced measures which the department will put in place to contain the impact of the Coronavirus (COVID-19) pandemic on UIF contributors.

The Unemployment Insurance Fund (UIF) will compensate affected workers through the existing Illness and Reduced Work Time benefits.

The guide is applicable to all employers who are registered with UIF and make monthly contributions as required by the Contributions Act of 2002.

In summary:

  • In terms of the TERS process, the UIF may fund companies affected by COVID-19 directly in relation to the TERS allowance.
  • The affected company will only be funded if it has been compliant with the relevant UIF legislation.
  • Should a company not be compliant, the said company must undertake to pay outstanding contributions and bring its declarations up to date within a stipulated timeframe.
  • The following applications will be considered:
    • Wage subsidy rulings;
    • Over and above wage subsidy and training intervention; and
    • Turnaround solution intervention.
  • Applicants will be expected to provide the following documents:
    • Proof of employment and a list of employees;
    • Salaries of directors;
    • Dedicated bank account;
    • Registration with the Central Supplier Database;
    • Power of attorney;
    • Turnaround strategy implementation plan;
    • Report of progress on the implementation plan.

To view the guide for employers, follow the link

For more information and to obtain application forms, email infoTERS@labour.gov.za

Employee declaration form

Employer declaration form

Contact our legislation team at info@crs.co.za if you require any additional information.
© 2020 C
RS Technologies (Pty)Ltd. All Rights Reserved.

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