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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

National Bargaining Council for the Clothing Manufacturing Industry

Extention to Non-Parties of the COVID-19 Lockdown Collective Agreement

3. Access to Unemployment Insurance Fund (UIF) Finance

 

The following provisions shall be applicable:

 

3.1. The parties agree and appreciate that should funds be received from the UIF for the purposes of this agreement, such funds constitute worker funds, and hence workers' contribution towards funding the shortfall in their income during a lockdown period (should a lockdown period be declared) and during which no wage is receivable.

 

3.2. The parties authorise the Chairperson of the Council to sign a memorandum of understanding agreement with the UIF Commissioner and/or the Minister of Employment and Labour or their respective nominee, which sets out the terms on which UIF funds will be released to the Council for the sole purpose of executing the provisions of this agreement.

 

3.3. The parties authorise the Secretary of the Council to open a dedicated bank account into which all UIF funds advanced to the council for the execution of the purpose of this agreement shall be deposited.

 

3.4. No funds shall be disbursed from the bank account referred to in sub-clause 3.2.1 above, other than that which is duty authorised and which is exclusively intended and ring-fenced for the purposes of this agreement.

 

3.5. The UIF funds are solely an exclusively intended to provide a wage subsidy for qualifying employees during a lockdown period declared by government and during which no wage payments from the execution of work is due and/or receivable.

 

3.6. The officials of the Council shall at all times ensure that proper records, including all supporting documents of all income and disbursements from the bank account referred to in sub-clause 3.3 of this agreement, are safely kept and secured.

 

3.7. The Secretary of the Council shall submit a weekly consolidated report to the UIF Commissioner of all income and disbursements pertaining to the bank account referred to in sub-clause 3.3 of this agreement.

 

3.8. The Council shall ensure that, post the lockdown period, if a lockdown period occurs, the bank account referred to in sub-clause 3.3 of this agreement is audited by no later than a 6 week period following the official termination of the lockdown period.

 

3.9. The UIF Commissioner or the Minister of Employment and Labour shall have the sole power to authorise a variation of the time period set out In sub-clause 3.8 of this agreement, on good cause.

 

3.10. The Secretary and/or Chairperson of the Council, or any other nominee of the Council, are instructed to immediately lay criminal charges against any person and/or entity who/which are suspected of abuse or corruption relating to the operations of the bank account referred to In sub-clause 3.3 of this agreement or in relation to any income or disbursements there from.

 

3.11. The Information and supporting records which companies would be required to submit for a drawdown of funds as envisaged in clause 4 of this agreement shall be immediately made available to the UIF, on request from the UlF.

 

3.12. Any UIF funds which remain after the completion of a post-COVID 2019 lockdown shall be fully refunded to the UIF within one week following the conclusion of the audit referred to In sub-clause 3.8 of this agreement.

 

3.13. The parties agree to appoint additional Council staff at its own cost to help manage the processes required to effectively and securely manage the bank account referred to in sub-clause 3.3 of this agreement.