COVID-19 Temporary Employer-Employee Relief Scheme under the spotlight

20 Jul 2020

The Unemployment Insurance Fund (UIF) has paid R31 billion in cash to workers around the country to help them cope with the harsh effects of the Covid-19 pandemic.

The employment and labour department confirmed this in a statement on the critical role played by entities during the Coronavirus COVID-19 pandemic.

“Close to 7 million payments (6 808 971) have benefitted millions of workers thus far, with at least 557 823 employers taking advantage of the offer by government, to see many families through the hardship occasioned by Covid-19.”

The department pointed out that payments have also been placed directly into the accounts of workers and not via their employers even though the claims were processed by employers.

“A total of 238 091 workers have received their share of just over R1-billion (R1 012 229 076.94) paid directly to their bank accounts in claims lodged by 14 707 employers.”

The department reiterated that R40 billion was committed to the COVID-19 Temporary Employer-Employee Relief Scheme.

“It is a massive project that is outside of our normal scope but despite all the teething problems, we have managed to stretch our human and financial resources to ensure that we play a critical role in contributing towards improving the economy when we are expected to.”

As regards the Compensation Fund (CF), so far, 1769 claims have been lodged in total – 1131 directly to the CF and the rest via Rand Mutual and Federated Employers.

“Of the claims received directly by the CF, 58.8% (665) have been accepted while 9.5% (107) have been repudiated. Repudiated means that while the claim has been rejected, it could still be accepted if more information is provided to support it. Just 31% (359) of those claims still await adjudication.”

Most of the claims have come from the Western Cape with 813, Eastern Cape with 160, KwaZulu-Natal with 99, Gauteng with 54, 2 each in Limpopo and North West and 1 case in the Northern Cape.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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