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

UIF COVID-19 Temporary Employer/Employee Relief Scheme under the spotlight
23 Jun 2020

The employment and labour minister, Thulas Nxesi, has called on companies to do the right thing and declare workers that still need to be paid.

In a statement, the employment and labour department confirmed 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”.

According to the department, May payments stand 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.”

In total, the Unemployment Insurance Fund Covid-19 Temporary Employer/Employee Relief Scheme has disbursed more than R21 billion benefitting 3 609 161 workers represented by 314 454 employers.

Recently, the Fund appointed auditors to follow the money trail and early indications are that “some people and companies have allegedly taken advantage of the help being advanced to workers and are seeking to enrich themselves”.

“It is alleged that there are companies that have not paid the workers what is due to them. We are aware of some companies allegedly loaning employees the money and that is not legal. We are also aware of other companies that are allegedly paying part of the money and not the full amount, as well as companies using the money for something else other than the intended purpose,” said Nxesi.

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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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