Some South African companies are refusing to apply for relief schemes – leaving staff out of pocket
The South African Payroll Association (SAPA) says it has received several complaints from employees whose salaries have been cut, but their employers have not attempted to claim from the Department of Labour’s Temporary Employee/Employer Relief Scheme (TERS).
Arlene Leggat, president of the SAPA, said that many employers believe they won’t receive funds from the TERS, but this isn’t true.
“There is a lot of negativity about the TERS and the government’s ability to process payments. The payment system initially had its hiccups, but the reality now is that TERS benefits are being paid out but employers are being too stubborn to apply for the benefits on their staff’s behalf.”
“If your company has had to reduce employees’ hours, cut salaries, or both, it is your responsibility to start the application process so that your employees don’t have a reduced salary during these uncertain times,” said Leggat.
If you are working for a company that isn’t prepared to claim from the TERS, then you need to notify the Department of Labour so that they can follow up on this, she said.
The TERS is a financial support measure that the government has put in place to support workers and employers during the Covid-19 lockdown.
An employee’s daily income, as well as the income replacement rate, needs to be calculated according to the requirements on the website.
Salaries that are taken into account for TERS benefits are capped at R17,712 per month per employee.
The income replacement rate sliding scale from 38% to 60% then determines the benefit the employee will receive.
The UIF has paid out over R11 billion since 16 April, it said on Monday (11 May). This includes benefits to more than 2 million workers and over 161,000 companies that launched claims on their behalf, it said
Who can claim?
While much has been written about the government only providing financial support to BB-EEE, Leggat said this is not the case for TERS benefits.
“All companies who are registered and pay UIF can claim. If your company’s TERS claim has been rejected and you don’t know why, please contact UIF through their available channels.
“It is challenging at the moment as calls are not always answered. The other option is to check your file and resubmit,” said Leggat.
How to claim
Leggat stressed that companies must apply for the TERS benefits and receive money as a lump sum, which they then have to distribute to their employees.
To initiate the process, employers must send an email to [email protected], which will trigger an automated reply that will outline the steps and details.
Then, applications are made on this website: www.uifecc.labour.gov.za/
Leggat pointed out that when the system initially launched in April, there were many issues, but these problems have for the most – been ironed out.
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