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24/7 National Hotline: 0860 163 272 | Email: info@neasa.co.za

COVID-19: TERS Funding difficult for small employers (10 or less employees)

Apr 15, 2020

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COVID-19

TERS FUNDING DIFFICULT FOR SMALL EMPLOYERS

10 OR LESS EMPLOYEES

Dear employer

We have previously communicated that the TERS-funding process does not allow employers with 10 or less employees to collect and pay over these UIF benefits to their employees or to set-off any advanced payment made by the employer to its employees.

The reason for this is that the UIF will pay the benefits directly to the employees and not to the employer.

This procedure placed these employers in a peculiar predicament, as they will not be able to make advance payments to employees in order to mitigate the effect of the waiting period until UIF releases payments, as it may prove difficult to recover these payments going forward.

The only possibility for employers who want to assist its employees by way of advanced payments, is to sign an Acknowledgment of Debt (english template/afrikaanse weergawe) in terms of which the employer can deduct the monies from the employee’s future salary, subject to the limitations on deductions as contained in the Basic Conditions of Employment Act or any applicable bargaining council agreement.

The practical problem with this approach is getting the employee to sign during the lockdown. It is advisable to e-mail, WhatsApp or message the agreement to the employee, with the condition that he confirms acceptance in writing and that he undertakes to sign the agreement when he returns to work.

Employers are advised to contact their regional NEASA office should they require assistance in this regard.

NEASA 24/7 NATIONAL HOTLINE: 086 016 3272
legalhotline@neasa.co.za

Regards

 

 

 

 

 

 

We are all in this together.
Privileged and challenged to be South African.

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