UIF Relief from SARS

Unemployment Insurance Fund (UIF)

To combat the impact of the COVID-19 pandemic, the UIF will assist affected workers through existing benefits. These benefits include:

  • Reduced work time benefit is applicable when a company shuts down for a period of time or work time is reduced. The benefit payable is the difference between the amount paid by the employer and the normal UIF benefits should to employee lose their employment.
  • Illness benefit is applicable in the event that an employee becomes ill and has to be quarantined for 14 days. The benefit payable is calculated in terms on the existing UIF regulations.
  • Death benefit is applicable should an employee pass away as a result of contracting COVID-19. The benefit payable is calculated in terms on the existing UIF regulations.

Required Documents

The following documents will be required on submission of the claim:

Reduced Work Time Benefit

Illness Benefit

Death Benefit

Application Process

The claim forms can be lodged on www.ufiling.co.za.

National Disaster Benefit

In addition to the above, a National Disaster Benefit was established. If an employer decides, as a direct result of the COVID-19 pandemic, to close its business for a period and send their employees home, these employees are deemed to be temporarily laid-off. In the event that the employer cannot pay the employees during this time, the employer may apply for the National Disaster Benefit from the UIF.

Benefit

The benefit will be at a flat rate equal to the minimum wage (R3,500) per employee for the duration of the shutdown or a maximum period of 3 months, whichever period is the shortest.

Required Documents

The following documents will be required on submission of the claim:

  • 1 form.
  • UI19 formand 7 form (completed by the employer).
  • 8 form(banking details form completed by the bank).
  • A letter from the employer confirming that the company shutdown or employee’s “temporary lay-off” is due to COVID-19 (reduced work time).
  • Copy of the employee’s ID.

Application Process

The claim forms can be lodged on www.ufiling.co.za.

Temporary Employee Relief Scheme

The existing TERS was expanded by the Minister of Labour on 25 March 2020 to include a COVID-19 TERS. In terms of COVID-19 TERS, should an employer as a direct result of the COVID-19 pandemic close its operations, in full or in part, for 3 months or less and suffer financial distress, the company may be eligible for a COVID-19 Temporary Relief Benefit.

Required Documents

SMMEs will need to provide the following documentation to apply for the scheme:

  • Letter of authority on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company.
  • Evidence/payroll as proof of last three months employee(s) salary(ies) (i.e. bank statements or payroll records/payslips).
  • MOA document (completion of the agreement between UIF, Bargaining Council and employer). Only applicable to employers that have more than 10 employees.
  • MOA UIF Employer to be completed for employers with more than 10 employees.
    • Complete the company name on page 1.
    • Initial each page.
    • Sign in full on the last page.
  • Please note that the alternative MOAs, MOA-B, MOA-C and MOA-D, relate to Bargaining Councils and are most probably not applicable to yourselves.

Application Process

  • Employers that have to enforce lockdown and who might require financial assistance from the UIF should access information regarding the available funding though the dedicated mailbox at Covid19UIFclaims@labour.gov.za.
  • On receipt of your request you will receive an automated response outlining the process and documentation required by the fund to process the application.
  • Submit all documents to the UIF via the dedicated mailbox at Covid19UIFclaims@labour.gov.za.
  • The COVID-19 system will attend to all applications and thereafter send an approval or rejection letter.

Easy-Aid Guides

Easy-Aid Guide for Employers

Easy-Aid Guide for TERS

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