MAY 2020 – SOUTH AFRICA
COVID-19 AMENDMENT AND CORRECTION OF DIRECTIVES
It is important that employers note the following:
Further amendments to the directive regulating the administration of C19 TERS benefits
Government Gazette 43265, Regulation 11101 No. R 486 was published on 5 May 2020 to further amend the schedule regarding the administration of COVID-19 (C19) TERS.
C19 TERS is a scheme established to compensate employees who will lose income due to the COVID-19 pandemic.
The additional amendments include:
- The purpose of the directive is to make provision for the payment of benefits to contributors who have lost income as a result of the COVID-19 pandemic. Employees who were obliged to take annual leave in order to receive payment are now also entitled to the benefits.
- An employer who required an employee to take annual leave during the period of the lockdown may set off an amount received from the UIF in respect of that employee’s COVID-19 benefit against the amount paid to the employee in respect of annual leave, provided that the employee is credited with the proportional entitlement to paid annual leave in the future.
- To avoid employees visiting the departmental offices for the application of COVID-19 benefits during lockdown, the employer must apply for the COVID-19 benefits on behalf of its affected employees.
- Employers may not apply for TERS benefits where the employees are entitled to UIF benefits from a bargaining council. The employees are also not entitled to the TERS benefits. The rule was amended by adding that the employer/employee will not be entitled if the employer did not apply for COVID-19 benefits to the UIF nor signed a MOA (memorandum of agreement) with the UIF.
- To speed up the payment of COVID-19 benefits, employers are also urged to pay employees in line with the calculation of the benefits as set out in clause 3.4 of the directive and reimburse or set off the COVID-19 benefit payments from UIF.
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