Dear Members

In a bid to assist members during the challenging lockdown period SAIBPP has undertaken to submit an application on behalf of our members to the UIF COVID-19 Temporary Relief Scheme (TERS). The COVID-19 TERS is a special benefit separate from the ordinary UIF benefits and processes. The objective of this fund is to minimise job losses and alleviate the strain to employers & employees during the lockdown period by subsidising payroll of businesses during the period in which the business is unable to trade. Following extensive engagement between the SAIBPP Executive and the Department of Labour through Minister Nxesi and the UIF Commissioner, it has been resolved that a joint submission by SAIBPP will be made to the fund collating all relevant member information to assist in expediting & tracking approvals. Please note that applying does not guarantee approval. Applicants will still be subject to the regular verification and validation processes and members are therefore requested to ensure that all the requested information is submitted in full and is a true reflection. Members who are affected are requested to urgently submit the following documents to:
info@saibpp.co.za , cc: ceo@saibpp.co.za with
subject line: COVID-19 TERS

These documents include:

• A letter of authority from the employer (download HERE);
• The UIF’s template (download HERE) which includes details of the employer, the period of closure, the list of employees and their dates of employment and ID numbers, the remuneration received by the employees;
• Proof of remuneration to employees for the previous 3 months;
• Confirmation of employer bank account (bank confirmation letter, does not need to be certified)

Frequently Asked Questions

Who can claim?

• Contributors, i.e. employers and employees who contribute to the UIF.
• The employer must have closed its operations, or part of its operations, as a direct result of the Covid-19 pandemic, for a period of three (3) months or less.
• The size of the employer’s workforce does not matter. Special provisions of the memorandum of the agreement apply to employers with fewer than 10 employees.
• The employee must have been in the employer’s employ on 27 March 2020, and must have suffered, or will suffer, a loss of income as a result of the closure.
• The benefit may only cover the cost of salaries during the closure – it may not be used for other purposes.

What is the value of the benefit?

• The benefit is determined with reference to a sliding scale.
• Employees may get a percentage of their salary (between 38% and 60%). For purposes of this calculation,
  • the relevant salary amount is the maximum of R17,712 per month, per employee. Therefore: If an employee’s salary is more than the maximum threshold amount of R17,712 – for example, R20,000 – the employee would not receive a percentage of R20,000, but would receive 38% of the threshold amount of R17,712. The maximum amount of the C-19 TERS monthly payment will therefore be the amount of R6,730.
  • If an employee’s salary is less than the threshold amount, e.g. R15,000, the employee would receive a percentage of her/his salary of R15,000. The exact percentage that s/he would receive, will be determined in accordance with the UIF calculator. The calculator is soon to be found on the UIF website, and we will update this note when it is.
• The minimum amount of the benefit is R3,500 regardless of the minimum wage as prescribed by the applicable sectoral determination / collective agreement.
• Employers may supplement these benefits, but employees may not get their full salary PLUS the benefit. The maximum that an employee may accordingly receive (from the UIF and their employer) is 100% of their salary.

What if the employer paid the employee? Can the employer still claim the benefit?

• Yes. The employer may claim the benefit and may retain the value of the benefit already paid to the employee.
• In order to avoid disputes, it is recommended that the employee’s payslip reflects “TERS Benefit” (in the event that the employee is paid the value of the benefit) or “Includes TERS Benefit” (if the employee is paid an amount higher than the TERS benefit.

What must the employer do to claim?

• Fill in and submit the following documents to: info@saibpp.co.za / ceo@saibpp.co.za
• These documents would include:
  • A letter of authority from the employer (attached);
  • The UIF’s template which includes details of the employer, the period of closure, the list of employees and their dates of employment and ID numbers, the remuneration received by the employees;
  • Proof of remuneration to employees  for the previous 3 months;
  • Confirmation of the employer bank account.

Will the benefit be paid in one lump sum?

• The UIF will pay benefit funds in relation to three separate time periods: first for the period of temporary closure for 30 days from the date of lockdown; second for any period of temporary closure during the following 30 days; and third, for any period of temporary closure during the balance of the Memorandum of Agreement. The Agreement is in force for three months from the date of confirmation by the UIF that it accepts the employer’s Covid-19 TERS application.

What about employers who employ fewer than 10 employees?

Employers with FEWER than 10 employees must submit the individual bank account details of each of the employees to the UIF. The UIF will pay these employees directly.

What are the employer’s accounting obligations?

• Employers must keep all their accounting records relating to the Memorandum of Agreement and the COVID-19 benefit for 5 years, and keep them separate from accounting records relating to its business. This will enable them to be identified on a standalone basis from the business-related accounting records.
• Employers must keep a proper audit trail of the UIF funds received and benefits paid to employees.
• Employers may not withdraw the funds paid by the UIF, or draw any cheques from the funds.
• The UIF may appoint an auditor or investigator to audit the employer’s implementation of the Memorandum of Agreement.

Is the information submitted to SAIBPP and the UIF confidential?

• Yes, the information submitted by the employer and employees will be kept confidential, and will only be shared with the UIF