Dear CEO Members
On the 15th June 2020, the Unemployment Insurance Fund Departmental spokesperson Teboho Thejane issued a statement indicating that the UIF department will begin to follow the trail of the money that has been disbursed since April 2020 to aid for its contributors during the lockdown.
The Minister of Employment and Labour Thulas Nxesi has appealed to companies to do the right thing and declare workers who still need to be paid. The UIF department has indicated that to date, an amount of R3.2-billion from the first round of payments remains in abeyance as the Fund awaits further details from employers, to be able to soften the blow for at least 725 791 workers represented by 123 977 employers.
The Minister further stated that “In as much as some companies have re-opened as a result of the risk-adjusted strategy which has seen the country move to level 3 of the lockdown, acknowledged that there are still people who would find the injection from the UIF helpful and making a huge difference. There are still a number of companies that are either still closed or in dire straits and we hope those workers are not left in destitute”.
Minister Nxesi reassured employers/employees that the government is committed to ensuring that the worst effects of the pandemic are mitigated through making available a basket of services and other interventions. The UIF has been exemplary in rising to the occasion and helping make the difference,” said the Minister.
Please note that the UIF department further stated that the May payments are already at R3-2-billion and have benefitted 782 602 workers represented by 57 260 employers. Unfortunately, even in this round, 85 049 workers who would have benefitted from R356-million in payments have still not received the money as the details submitted by employers are missing.
Since April, the Fund has disbursed more than R21-billion benefitting 3 609 161 workers represented by 314 454 employers. The Fund appointed auditors to follow the money trail, and already there are indications that some people and companies have allegedly taken advantage of the help being advanced to workers and are seeking to enrich themselves.
The Minister also appealed to companies to ensure that they are compliant with the Unemployment Insurance Act and stated that the Fund had made payments even in cases where companies are not yet fully compliant and also many cases where companies have not declared workers or have not contributed for employees.
The Department issued a stern warning about raising debt against those companies and must know that they need to pay back with interest and other penalties owed to the UIF.
Please click here for the full statement.
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CEO Collective Bargaining Team