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Disaster Management Act, 2002 (Act No. 57 of 2002)

Notices

Covid-19 Temporary Relief Scheme, 2020

3. Covid-19 Employee / Employer Temporary Relief Scheme (C19 TERS)

 

3.1 Subject to clause 3.8.1 and 3.8.2 (c) in view of social distancing and in order to avoid in person individual employee applications at Departmental offices for the Covid -19 benefit during lockdown, should an employer as a result of the Covid-19 pandemic close its operations, or a part of its operations, for a 3 (three) months or lesser period the employer must apply in accordance with clause 5.1 and 5.2 for Covid-19 benefits for and on behalf of its affected employees.

[Clause 3.1 substituted by section 2 of Notice No. R. 486, GG43265, dated 4 May 2020]

 

3.2 The benefit shall be de-linked from the UIF's normal benefits and therefore the normal rule that for every 4 (four) days worked, the employee accumulates a one day credit and the maximum credit days payable is 365 for every 4 (four) years will not apply.

 

3.3 The benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations.

 

3.4 The salary to be taken into account in calculating the benefits will be capped at a maximum amount of R17,712.00 per month, per employee and an employee will be paid in terms of the income replacement rate sliding scale (38%-60%) as provided in the UI Act.

[Directive 3(3.4) substituted by Notice No. 240, GG43216, dated 8 April 2020]

 

3.5 Should an employee's income determine in terms of the income replacement sliding scale fall below R3500, the employee will be paid a replacement income equal to that amount.

[Directive 3(3.5) substituted by Notice No. 240, GG43216, dated 8 April 2020]

 

3.6 Qualifying employees will receive a benefit calculated in terms of Section 13(1) and (2) of the UI Act, provided that an employee shall receive a benefit of no less than R3 500.

[Directive 3(3.6) substituted by Notice No. 240, GG43216, dated 8 April 2020]

 

3.7 For the company to qualify for the temporary financial relief scheme, it must satisfy the following requirements—
3.7.1 The company must be registered with the UIF;
3.7.2 The company must comply with the application procedure for the financial relief scheme; and
3.7.3 The company's closure must be directly linked to the Covid-19 pandemic.

 

3.8

3.8.1 An employer whose employees are entitled to receive Covid-19 benefits provided by the Unemployment Insurance Fund during the period of lockdown from a bargaining council or entity may not make an application in terms of the Scheme and the employees of that employer may not receive any payment in terms of the Scheme other than through the bargaining council or entity.

 

3.8.2 The restriction in clause 1 above only applies if—
(a) The parties to the bargaining council have concluded a collective agreement that—
(i) has been extended by the Minister of Employment and Labour in terms of section 32 of the Labour Relations Act, 1995 (Act No. 66 of 1995); and
(ii) provides for the disbursement of funds received from the Unemployment Insurance Fund to provide Covid-19 benefits to employees bound by the collective agreement during the period of lock-down; and/or
(b) the bargaining council has concluded a memorandum of agreement with the Fund for the council to disburse Covid-19 benefits on behalf of the Fund to—
(i) the employees who fall within the scope of the collective agreement or its registered scope; and
(ii) if authorized by the memorandum of agreement, any other employees in a sector identified in the agreement, whether or not they fall within the registered scope of the bargaining council; and/or
(c) the employer has not submitted an application for COVID-19 benefits to the UIF prior to signing of an MOA with UIF; or

[Clause 3.8.2(c) inserted by section 3 of Notice No. R. 486, GG43265, dated 4 May 2020]

(d) the employer has not submitted an application for COVID-19 benefits prior to the bargaining council or entity signing of a MOA with the UIF.

[Clause 3.8 (3.8.1) and (3.8.2) substituted by section 3 of Notice No.R.541, GG43330, dated 15 May 2020]

 

3.9 An employee may individually apply for COVID-19 benefits if—
3.9.1 the employee meets the requirements of clause 2.1.1 (a) of this Directive;
3.9.2 no bargaining council or entity has concluded a MOA with the UIF in terms of clause 3.8; and
3.9.2 the employee's employer has failed or refused to apply for COVID-19 benefits in terms of clause 3.1.

[Clause 3.9 inserted by section 4 of Notice No.R.541, GG43330, dated 15 May 2020]

 

3.10 This Directive, including any amendments made to it, takes effect from 27 March 2020.

[Clause 3.10 inserted by section 4 of Notice No.R.541, GG43330, dated 15 May 2020]