UIF Reduced working hours

The Department of Employment and Labour would gladly assist your organisation with the process for applying for benefits.  

The documents attached  explains in detail but see below a brief on the three documents for ease of reference:

RETRENCHMENT

See below documents required for Retrenchment Benefit:

  • UI 2.1 (application form)- signed by employee
  • UI19 and UI2.7 (completed by Employer)
  • UI 2.8 (banking details form completed by the bank) or Bank Statement or Print out from Payroll system confirming Bank information ( certified if possible)
  • A letter from the Employer confirming company shutdown or employee’s
  • Copy of Employee’s ID document

SHORT TIME/TEMPORARY SHUT DOWN

If a company contemplates a short term shut down, they are required to inform the Unemployment Insurance Fund for guidance. Section 12 (1B) covers a contributor employed in any sector who loses

his or her income due to reduces working time , despite still being employed , is entitled to apply for benefits.

The following forms are required:

FORMS AND DOCUMENTS FOR REDUCED WORK TIME (SHORT TERM SHUTDOWN)

  • UI 2.1 (application form)
  • UI19 and UI2.7 (completed by Employer)
  • UI 2.8 (banking details form completed by the bank)
  • A letter from the Employer confirming company shutdown or employee’s
  • “temporary lay-off” is due to the Corona Virus ( Reduced work time )
  • Copy of Employee’s ID document

In terms of section 13(3) of the Unemployment Insurance Act , as amended the accumulation of credits is at the of 4:1 ( every 4 days worked and contributed , 1 days credit is accrued ) in a 4 year cycle from the date of unemployment up a maximum of 365 days .In terms of section 12(1) b of the Unemployment Insurance Act, as amended , the maximum UI benefit will be paid as per the benefit structure if the employer pay R 0.00 amount to the employee during the shut down period. However, if a certain Rand value is paid during the shut down period, then the UI benefit will be reduced (difference between the benefit level and amount received as income)

DEATH BENEFIT

This portion corresponds to cases where the contributor passes on due to corona virus in terms of Part F of the Unemployment Insurance Act, as amended.

Benefits are paid to the beneficiaries of the deceased. The current deceased application process and practice will remain as is for now, until indicated otherwise.

Furthermore, the fund will now accept ALL applications via email, fax or drop box.

Email address is Capet.BCP@labour.gov.za (Metro)

Fax 0864397300 (Cape Town)

George.BCP@Labour.gov.za (Southern Cape)

Fax- 0864397301

RAPID RESPONSE TEAM: PROVINCIAL BASED

The Departmental rapid response team will contact the companies in cases of retrenchment of more than 50 employees to provide the necessary assistance with the application and payment of this

benefit type.

TEMPORARY EMPLOYER/EMPLOYEE RELIEF SCHEME (TERS) – THE CURRENT TERS PROCESS

In terms of the TERS process, the Unemployment Insurance Fund (UIF) may fund the distressed companies directly in relation to the TERS Allowance.

The distressed company will only be funded if it meets the key requirements

To obtain application forms and all relevant details , please send an email to infoTERS@labour.gov.za . Companies must send an application for TERS to the CCMA (applications should be sent to MosaB@ccma.org.za).

FOR ENQUIRIES , FOLLOW UP, COMPLAINTS AND ESCALATION on TERS:

TERS@labour.gov.za

Escalation to Director General – Welile.dlwengu@labour.gov.za

Click on the following links to open the documents: