Covid-19: TERS funding update

COVID-19

TERS-FUNDING UPDATE

Dear employer

A lot of uncertainty still surrounds the application process and the actual benefits payable by UIF from the TERS-funding.

Even though the Department of Employment and Labour has gazetted regulations effectively implementing the TERS benefit, it seems that there is still no agreement at NEDLAC as to how this process should actually function and which documentation, and in what format, should be required.

What is clear is that there is a differentiation between employers employing up to 10 employees and employers employing more than 10 employees.

Although all employers are required to register for the benefit by sending an e-mail to covid19ters@labour.gov.za, only employers employing more than 10 employees will be required to complete a memorandum of understanding. These employers will receive a bulk payment from UIF and will be responsible for the distribution of the funds to its employees and provide an audit trail.

Employers with 10 or less employees will not have to distribute the funds as employees will be paid directly by UIF.

All employers will receive an automated response from covid19ters@labour.gov.za and a number of compulsory documents will be provided.

Despite the fact that these documents are not yet in their final format, employers are encouraged to submit claims as soon as possible as it will take UIF some time to process the large number of expected claims.

It also seems that any subsequent updated documents will simply supersede any outdated documents already submitted.

Employers should note that claims should be mailed to covid19claims@labour.gov.za.

Please note that employers who resort under a bargaining council, should confirm with such a council whether it has reached an agreement with UIF in respect of TERS benefits, in which case claims must be submitted through the relevant bargaining council in accordance with that particular agreement. We are currently aware of only one such agreement in the Clothing Industry Bargaining Council. Click here for a previous newsletter in this regard.

We will keep members abreast of any further developments.

Regards

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