Big spike in South African businesses applying for financial support

The Department of Employment and Labour has seen a large spike in online traffic which has resulted in slowness across its entire system.

The department said that the spike in activity has been caused by South Africans which are ‘chasing’ the lockdown claim deadline for the Covid-19 relief scheme administered by the Unemployment Insurance Fund (UIF).

“We would like to make it clear that we have not reached the deadline yet.  The period will depend on the Memorandum of Understanding signed, but it shall not exceed three months, which is the period given for the Covid-19 TERS relief benefit,” said director-general Thobile Lamati.

“This means that in all intents and purposes, employers should continue applying for lockdown relief benefits for the foreseeable future until the department indicates otherwise.”

The Department of Labour said that the fund has also improved the functionality of the online system to enable employers, employees and organised labour to be able to see which companies have been paid

In the past, the UIF received a number of queries where workers have been unable to determine if their companies have applied for and or received payment on their behalf from the Department of Employment and Labour Covid-19 TERS.

Since 16 April 2020, the UIF has paid out R4.4 billion in lockdown relief scheme for the benefit of 1.1 million workers.

“We are however still worried that there are 384,239 workers who may be disadvantaged because their details on our systems are missing and therefore cannot access the relief.

“More than R1.5 billion is being held by the Fund as it awaits further particulars from employers,” said Lamati.


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Big spike in South African businesses applying for financial support