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COVID19 - Financial Relief through Temporary Employer / Employee Relief Scheme (TERS) or UIF

Webinar feedback and questions & answers

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ADDITIONAL INFORMATION:

 

Introduction

 

***Conflicting Media Statements***

 

Certain spokespeople occasionally issue statements that conflict with the UIF and TERS guidelines as well as legal matters. We recommend you apply what has been published in writing - the Gazetted Regulations; The Departmental TERS & UIF guides; the automated email reply.

 

To ensure you have the latest info send an email again to covid19ters@labour.gov.za and any regulatory changes will be communicated. The printed documents will serve as proof of compliance if you have to answer. Verbal statements by Ministers or similar Representatives on radio or tv cannot change the published laws, regulations and guidelines.

 

Operation Requirements (Slide 8)

 

***The TERS Benefit ***

 

(Informative opinion and not legal advice)

 

Section 3 indicates the salary benefits will be capped at a threshold salary of R17 712.00 per month. Benefits will be calculated on a sliding scale against the salary paid, subject to the cap, on a sliding scale (38% higher salaries - 60% lower salaries) in terms of s12 of the UI Act. If less than the NMW then the NMW will be paid.”

 

As an example only: If maximum threshold or above and at 38%

then (R17, 712 * 12) / 365 = R582.31 per day.

R582.31 * 0.38 = R221.28.

That equates to a monthly rate of R221.28 * 28.75 = R6 361.76.

 

Prepare the application (Slide 11)

 

***Keep updated***

 

Send an email to covid19ters@labour.gov.za – you should receive an automated reply. The automated reply also provides important technical info. It is recommended that you send a new email to receive updated info. This automated reply has already changed several times.

 

Preparation (Slide 12)

 

***The Spreadsheet***

 

This spreadsheet will replace the usual UI19 and for employers that don’t make use of a payroll package. We understand that there are many questions regarding the info required on the spreadsheet. In fact too many to answer here and to explain the spreadsheet. For a detailed description of the information required please visit www.saueo.co.za. The spreadsheet info is explained column by column in a guide created by SAUEO.

 

Preparation (b) (Slide 12)

 

***Minimum Wage defined***

 

Unregulated Industries falls under the National Minimum Wage.

Domestic Workers = R 15.57 p/h or R124.56 p/day

Farmworkers = R 18.68 p/h or R149.44 p/day

Public Works Program = R 11.42 p/h or R91.36 p/day

Other workers = R 3500 per month or R166.08 p/day

 

For employers falling under a specific Industry please check the relevant Sectoral Determination or visit the relevant Bargaining Council’s webpage.

 

Visit www.labour.gov.za for a list of all Bargaining Councils and Sectoral Determinations.

 

Memorandum of Agreement (Slide 13)

 

***Memorandum of Agreement (MOA)***

 

The following 3 MOA categories will apply.

 

*1.* *Employers employing less than 11 Employees.*

 

These Employers will not be able to enter into the MOA and no payment will be made directly to these Employers. It follows that the benefits due to each Employee will be paid directly to the individual Employee.

 

Therefor your spreadsheet must contain the banking details of the employee.

 

*2.* *Employers employing more than 10 Employees AND are registered with a Bargaining Council that has entered into a MOA with the DEL UIF. Check with your Bargaining Council.

 

No individual Employer application can be filed with DEL UIF. Instead the MOA must be filed with the Bargaining Council.

 

*3.* *Employers employing more than 10 Employees NOT registered with a Bargaining Council.*

 

These Employers will have to enter into individual MOA’s with the DEL UIF.

 

*Different versions of the MOA* have been shared or passed around over past week. It is our understanding that when the final terms are concluded at NEDLAC that the final single terms will be applicable to all employers and it will supersede any outdated MOA signed.

 

The same applies for the Annexure A to the MOA. It was specifically for the Bargaining Councils

 

Proof Required (Slide 14)

 

***Bank Account***

 

A Dedicated bank account is no longer a requirement for employers. For audit purposes we propose that you still make use of a dedicated account. The account used must be in the name of the Business. Confirmation of Bank Account must be submitted with the Application for TERS benefits?

 

Payments (Slide 17)

 

*** The process and timelines***

 

The employer completes the application and submit the claims on behalf of the employees. Once the application has been processed the employer will be required to sign the MOA.

 

The payment to the employees must be done within five days of receipt of the benefits and provide proof of payment to the employees.

 

The payment should be received within 30 days, if not follow up.

 

QUESTIONS & ANSWERS:

 

Q:        I had problems in viewing the presentation / missed it.

A:        The presentation is available here.

 

Q:        Conflicting media statements / Call center

A:        Certain spokespeople occasionally issue statements that conflict with the UIF and TERS guidelines as well as legal matters. We recommend you apply what has been published in writing - the                Gazetted Regulations; The Departmental TERS & UIF guides; the automated email reply.

 

 To ensure you have the latest info send an email again to covid19ters@labour.gov.za and any regulatory changes will be communicated. The printed documents will serve as proof of compliance        if you have to answer. Verbal statements by Ministers or similar Representatives on radio or tv cannot change the published laws, regulations and guidelines.

 

 This includes information given by the Call Centre Agents. It will be difficult to prove that you followed guidelines when you have to Answer “The lady at the Call Centre said …….”

 

Q:        Who applies for TERS

A:        The employer will prepare and submit the application obo the employees. However if your company falls under the jurisdiction of a Bargaining Council, please check with the BC for assistance.        MOA’s with some BC’s may be concluded to apply for the claims.

 

Q:        Period

A:        TERS - The initial period is from 27 March 2020 until 16 April 2020. If the lockdown is extended submit another application or wait for regulations to be published. UIF – wait until Lockdown is over        to correctly declare the period on the UI19.

 

Q:        Exclusions of certain types of companies

A:        There are no exclusions based on the type of company type. In other words the qualification is registration with UIF (compliant) and not whether you are a (Pty) Ltd, CC or even a Sole Proprietor.        The TERS benefit is also not limited to SMME’s only.

 

Q:        Which claim process is most benifitial

A:        There is no choice, for a lockdown it is TERS, For Reduced working Time it is UIF. You cannot choose.

 

Q:        Technical questions regarding the spreadsheet

A:        The proposed format is explained in the automated reply received after registering via email on covid19ters@labour.gov.za. The automated reply is also available on the SAUEO website. The        spreadsheet is also explained “column by column” on the SAUEO website. For technical assistance regarding payroll software export reports kindly contact your software developer.

 

Q:        The TERS Benefit

A:        (Informative opinion and not legal advice) Section 3 indicates the salary benefits will be capped at a threshold salary of R17 712.00 per month. Benefits will be calculated on a sliding scale against        the salary paid, subject to the cap, on a sliding scale (38% higher salaries - 60% lower salaries) in terms of s12 of the UI Act. If less than the NMW then the NMW will be paid.”

 

 As an example only: If maximum threshold or above and at 38%

 then (R17, 712 * 12) / 365 = R582.31 per day.

 R582.31 * 0.38 = R221.28.

 That equates to a monthly rate of R221.28 * 28.75 = R6 361.76.

 

 Other information as how the sliding scale works etc. cannot be answered by us as UIF will calculate this benefit. We assume that UIF will send a schedule of actual payments to be made to each        and every employee.

 

 The TERS benefit is not a loan and will not have to be repaid and will not have any effect on UIF claims as it is delinked from the normal UIF fund. The money is obtained from the National Disaster        Fund.

 

Q:        UIF registrations vs EMP201 U-reference number

A:        The requirement is to have a valid UIF number as registered with UIF this is not the U-reference number on the EMP201.

 

 If the employee is not registered with UIF you may not claim for that employee. This includes all types of employees, foreigners etc.

 

Q:        Closures not for the full period / selected employees

A:        In the event of partial closure the process remains the same. This included employees that initially worked and is now on lockdown or in the case of some employees working whilst others are on        lockdown. The expected amended regulations may make provision for this. No harm in submitting your application. Just declare this in your spreadsheet.

 

 The same will apply if your company funds are running out.

 

Q:        VAT and payslips

A:        It is not clear whether Vat will be raised should an invoice be required, Please enquire from your accountant. It appears on info available that it is a non-vat item. Do not issue your employees with        a payslip, just provide them with the proof of payment.

 

Q:        The spreadsheet

A:        This spreadsheet will replace the usual UI19 and for employers that don’t make use of a payroll package. We understand that there are many questions regarding the info required on the                spreadsheet. In fact too many to answer here and to explain the spreadsheet. For a detailed description of the information required please visit www.saueo.co.za. The spreadsheet info is                explained column by column in a guide created by SAUEO.

 

 One important note, in the banking details columns, for less than 11 employees enter the employees banking details as they will be paid directly. For more than 10 Employees enter the company’s        banking details in each and every line as it will be paid to the company.

 

 ***(Sector)Minimum Wage defined***

 

 Unregulated Industries falls under the National Minimum Wage.

 Domestic Workers = R 15.57 p/h or R124.56 p/day

 Farmworkers = R 18.68 p/h or R149.44 p/day

 Public Works Program = R 11.42 p/h or R91.36 p/day

 Other workers = R 3500 per month or R166.08 p/day

 

 For employers falling under a specific Industry please check the relevant Sectoral Determination or visit the relevant Bargaining Council’s webpage.

 

 Visit www.labour.gov.za for a list of all Bargaining Councils and Sectoral Determinations.

 

 

Q:        Memorandum of Agreement (MOA)

A:        The following 3 MOA categories will apply.

 

 *1.* *Employers employing less than 11 Employees.*

 

 These Employers will not be able to enter into the MOA and no payment will be made directly to these Employers. It follows that the benefits due to each Employee will be paid directly to the        individual Employee.

 

 Therefor your spreadsheet must contain the banking details of the employee.

 

 *2.* *Employers employing more than 10 Employees AND are registered with a Bargaining Council that has entered into a MOA with the DEL UIF. Check with your Bargaining Council.

 No individual Employer application can be filed with DEL UIF. Instead the MOA must be filed with the Bargaining Council.

 

 *3.* *Employers employing more than 10 Employees NOT registered with a Bargaining Council.*

 

 *Different versions of the MOA* have been shared or passed around over past week. It is our understanding that when the final terms are concluded at NEDLAC that the final single terms will be        applicable to all employers and it will supersede any outdated MOA signed. The same applies for the Annexure A to the MOA. It was specifically for the Bargaining Councils The MOA will be                finalised by UIF before payment is made.

 

Q:        Bank account

A:        A Dedicated bank account is no longer a requirement for employers. For audit purposes we propose that you still make use of a dedicated account. The account used must be in the name of the        Business. Confirmation of Bank Account must be submitted with the Application for TERS benefits. Currently the requirement is to submit certified (by the bank) statements. If a new dedicated        account has been opened draw a zero balance statement. If no other option you may also use a letter of confirmation from the bank as long as it is stamped.

 

Q:        The process and timelines of payments

A:        The employer completes the application and submit the claims on behalf of the employees. Once the application has been processed the employer will be required to sign the MOA. The payment        to the employees must be done within five days of receipt of the benefits and provide proof of payment to the employees. The payment should be received within 30 days, if not follow up.

 

Q:        I made a mistake in my TERS submission

A:        This is not an easy fix, hence the point of ensuring correct information. I recommend that you try and submit a new application. Also communicate in an email to the fund explaining the previous        error and the new application.

 

Q:        I have already submitted a UIF application ito the first guidelines

A:        Notify UIF via email, and then submit a TERS application. In your email body when submitting your claim add a line to state this fact. Eg " Please be advised that this application replaces our claim        to UIF as per the previous Regulations"

 

Q:        More information on other financial measures

A:        Various webinars are available on the Free Webinar link.

 

Q:        Proof of distress

A:        We believe that this requirement may be removed from the requirements, Please check future updates and Regulations.

 

Q:        Leave and Top-up payments

A:        It is recommended that paid leave must be accompanied by a signed leave form or written agreements with the employees. Declare any such leave on your spreadsheet. Employees will not be        paid for any period of paid leave.

 

GUIDES:

 

UIF Assistance guide

 

We have put a guide together including the necessary documentation to be completed as well as the Easy-Aid Guide for Employers for UIF Benefits.

 

Click here to view the guide.

 

TERS guide

 

We have put a guide together including the necessary documentation to be completed for Employers and Employees for TERS.

 

Click here to view the guide.