Many small and medium businesses and their employees have struggled to cope with the restrictions in place. These has been extended and essentially, we are now at the halfway mark of this 5 week lockdown. That is not the best news for many who are really struggling with these circumstances.
Not that it will solve every problem out there, but it is important that everyone knows what has been put in place to help soften the blow a little bit. Government has made some provisions and I would encourage everyone that is eligible to make use of this.
I have tried to share my own understanding of what has been put in place. If it makes sense and is clear enough, please share it with your family members or anyone you know that may need it.
The official document can be found on the website of the department of employment and labor. My own summary is below, with the hope that it’s a bit easier than the original guide. If there is an even easier out there, then by all means share that one.
COVID 19 EASY AID GUIDE SUMMARY
Because of the state of DISASTER that was declared in SA, the minister of employment and labor can change current procedures and policies to help manage the situation for employers and employees, and this is what has been done.
The Unemployment Insurance Fund (UIF) and the relevant people there (Unemployment Insurance Commissioner and Unemployment Insurance Executive) has In addition to normal UIF benefits developed a Corona Virus Disease Temporary Employer/Employee Relief Scheme (COVID-19 TERS) to contribute to dealing with COVID-19 and its impact.
An action required: Employers that require financial assistance from UIF needs to appoint someone to start the process by sending an email to a dedicated mailbox at this address: covid19ters@labour.gov.za
The mailbox will reply with an auto-response that explains the procedure and all requirements of the application. The person from the company that sent the email and reads the response will then need to submit everything that is needed as explained in the automatic response.
The guideline from the department of labour goes further and says how clients can access Unemployment Insurance Funding related to COVID-19 and the steps and documents needed are:
- A letter of authority that gives permission to someone to lodge a claim on behalf of the company. The letter must be on an official company letterhead
- A spreadsheet that the employer needs to complete with critical information
- Payroll evidence of last three months of salaries paid to employees
- Confirmation of bank account details via submitting a certified latest bank statement
- An MOA (I did not know what this stood for and looked it up – the short storied discovery is that it is basically a more formal version of a gentleman’s agreement between relevant people that outlines the rights and responsibilities of everyone involved in the company) It stands for: A Memorandum of Association or Memorandum of Agreement
HOW TO SUBMIT THE INFORMATION:
Use the dedicated mailbox that has been created (Note that this is a different email address from the above one): covid19UIFclaims@labour.gov.za
If the spreadsheet submitted is complete and accurate, it will be used to calculate which amount is due to the company or bargaining council.
Payment will be made after the memorandum of agreement is signed off between employer, bargaining council and Unemployment Insurance Fund.
The website also gives a call center number for the department of labor that can be used which employees can also use. I would encourage everyone to make use of the facility.
Lastly, I again need to add that the aim here is to help even just one more person understand the process better, and that as a result more people will benefit from the R 4 Billion that the President has set aside for employers and employees that are out of work because of the lock down. Ideally by now many employers would have explored this avenue already however I have reason to believe there are some that is unaware of it who has more questions than answers.
All the best to everyone facing different challenges during this time whether it be financial or otherwise. Look after yourself! Stay home and safe! And THANKS to all the amazing essential workers out there. You really are heroes!
Fergus' Blog 