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

Notices

National Bargaining Council for the Clothing Manufacturing Industry

Extension to Non-Parties of the COVID-19 Lockdown II 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' contributions towards funding the shortfall in their income during a lockdown period and during which no normal wage as prescribed in the Council's Main Agreement is receivable.

 

3.2. The signatory 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-3.3 above, other than that which is duly authorised and which is exclusively intended and ring-fenced for the purposes of this agreement.

 

3.5. The UIF funds are solely and exclusively intended to provide a COVID-19 relief 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, the bank account referred to in sub-clause 3.3 of this agreement is audited by no later than a 6 month period following 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 is 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 therefrom.

 

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 UIF.

 

3.12 Any UIF funds which remain after the completion of a post-COVID-19 lockdown period 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 collective 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.

 

3.14. All employer associations which are party to the Council shall provide a written report to the Council of all their member companies which have
(a) not applied for UIF benefits via the Council; and
(b) have themselves applied directly for UIF COVID-19 Relief Fund Benefits; and
(c) have not applied for UIF-COVID-19 Relief Fund Benefits at all.

 

3.15. The provisions of sub-clause 3.14 of this collective agreement shall be complied with within 2 business days with effect from the date which this collective agreement becomes binding to them.

 

3.16. All employers of companies which fall within the registered scope of the Council shall provide the Council with the required information necessary for the Council to execute the provisions of this collective agreement and shall provide such information within the time frames stipulated by the Council for such information requests.

 

3.17. All employers shall be required to register ail their employees with the UIF within 1 week after commencement of employment by such employees.