Updates to the TERS fund as of 28 May 2020

The Department of Labour had advised on the evening of 28 May 2020 that applications for the recovery TERS benefits can now be made online.

The Department of labour was apologetic for the delay in updating the portal so that May TERS claims can be made. It named a “hiccup of connectivity”. The Department of Labour has also reiterated that the following documents would be necessary for a successful claim:-

Proof of TERS payment to employees for April such as electronic bank statements or a letter of acknowledgement;
Confirmation of the employer’s bank account details either by way of a confirmation letter or latest bank statement; and
A signed approval or acceptance letter received from the UIF for April payments

For most of our clients, these documents would be available so that we can resubmit these claims immediately.

In addition, the National Economic Development and Labour Council has now consented to the fund making payments directly into the employee’s accounts. The consent was given for the direct payment to avoid any delays in payment to the employees and to deal with complaints that employers were withholding funds or underpaying employees.

It appears also that those employers that select the option of payment of benefits directly into employees accounts may have their applications fast tracked, although this has not been stated explicitly and it remains to be seen if this will be the case.

In addition, the Department has reiterated that payments are being made to foreign nationals provided that the documentation is available and their historic payments of UIF can be validated, although our experience has been that these payments are not being made.

To ascertain whether you are eligible either as an employer or an employee to claim from this Temporary Relief Scheme during the COVID-19 pandemic and for assistance in doing so, please contact our offices.

Legal consultation fees:

Employers:
Starting from *R2850,00 excl. VAT

Employees:
Starting from *R1650,00 excl. VAT

*Terms and Conditions Apply

Cape Town Office:
Telephone: +27(0) 21 425-5570
E-mail: Cape.office@lyonsbriviklaw.com