Payment to Employees during COVID-19 Lock-Down

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TERS-application-process.pdf

Please see the guidelines below to help you make decisions regarding payment and assistance of employees during the COVID-19 Lockdown.

Payment to Employees

  • One of the biggest concerns is that of the payment to employees. A lockdown is circumstances outside the control of the Employer and income will not be generated or it may be severely hampered during this time. Companies who can work remotely are encouraged to do so and must ensure that there are relevant policies and procedures in place to manage and regulate this arrangement.
  • The lockdown may lead to unintended consequences such as retrenchments/ layoffs  or reduced working hours. The Minister of Employment and Labour declared measures to help contain the spread of the COVID-19 virus. The Unemployment Insurance Fund (UIF) will compensate affected workers through its existing illness and reduced work time benefits. This applies to all employers that are registered with UIF and are in good standing as per the Contributions Act of 2002. It is a flat rate benefit of R3, 500 per month for the period of the lockdown up to a maximum period of 3 months. Thereafter it is calculated in terms of the normal UIF calculation and any future claim for UIF will not be affected.
  • The Temporary Employee Relief Scheme (TERS), to enable companies to pay employees directly during this period and avoid retrenchment and /or layoff is being investigated.  Further details are not yet available. However, the latest TERS document is attached for your perusal. See attached TERS Application process.
  • Other options available include a change in the builders shutdown period to coincide with this lockdown which may still give the employee an income. This may however be difficult to implement as companies may not have generated the revenue for the shutdown period this early in the year.
  • The option of special leave also exists which can be arranged between the employer and employee and this could be paid leave. Alternatively, a combination of annual leave and special leave may be negotiated in the circumstances.
Posted in Construction Health and Safety, General, MBA and MBSA news.

12 Comments

  1. My partner’s employer didn’t apply for these salary relieves. Today on payday he sent them an email saying he won’t be able to pay their salaries due to the lockdown. Is this legal? where can she complain?

  2. Everybody is expected to be home during the lockdown. Is there an allowance that can be paid to essential employees on duty as they are expected to work despite the lockdown?

  3. Hy our company giving us 437.5 per week and he is claiming he didnt got money and i kknow he is lying how should we see if he is lying

  4. I m working for electrical contract I m worried about my salary because we get paid on fortnight so on March before lockdown we work only four days then LOCKDOWN begin so they pay us only four day which means not full fortnight even now we haven’t get paid but they apply for uif salary releave.I m worried tha even next week friday they won’t pay us .I don’t know what to do sir

  5. “The Wolf,’ disagrees with President Ramaphosa to ‘release lockdown…’

    By Zahra Lockhart

    (7 May 2020—FF News) The Wolf of Wall Street, Mr. Omar Abdulla

    says that

    the release of the lockdown could have ‘dire consequences,’ for

    South Africa,

    with cases reaching 5000 in the African nation and close to four

    million worldwide.

    “The President is thinking of boosting the economy with his release

    of the lockdown,

    yet this could have a negative effect causing cases in the

    mother nation to rise, and

    the increase of the spread of the virus.’ he looped.

    Meanwhile, across the world, Covid 19 cases are starting

    to roar with the latest

    cases at meat packaging plants, nursing homes,

    grocery stores and pharmacies.

    “President Trump was too slow to close down The United States,

    and President

    Ramaphosa is too quick to open up the country. We could see a

    surge in cases and

    the rand reach R23.’ growled South Africa Today.

    Speaking to Footprints in South Africa, local resident Ms.

    Thando Sithole added that

    there is absolutely ‘no social distancing,’ in the townships of Soweto,

    Secunda, Khayalisha, Laudium, Lenasia,

    and Sebokeng.

    “President Ramaphosa is acting too quickly, and soon we will

    be in a lockdown again.’

    However, Oil prices around the world are still plummeting

    due to a lack of demand and

    the cut in production with Saudi Arabia and Russia.

    “There is simply too much oil in the world, and we are running

    out of storage space.’

    reported The Economic Times.

    Chewing on his pen and waving his hand through his hair,

    The Wolf of Wall Street,

    Mr. Omar Abdulla says that outbreaks in South Africa are pretty low,

    but we could see a spike in new cases in

    Pharmacies, Grocery stores and meat packaging companies.

    “President Ramaphosa is releasing the lockdown too early, and I

    can foresee more cases with

    more outbreaks at these facilities. Our request to the president is

    this is too quick and more

    lives will be lost.’

    The Omar Abdulla Group which owns shares into Bitcoin SA,

    Forex SA, Instagram SA

    And Twitter SA said on their website that they will continue to

    buy small amount of

    shares into SEO companies Eskom, Telkom, South African Airways

    and SABC.

    “After receiving over R500 billion rand in loan packages and treasury

    bond sales, we could

    see an uptick in these shares.’

    In o t h e r news, a UFO that was spotted and released by The

    Pentagon is said to be

    aliens either to cure us from The Corona Virus, and make the

    virus strain even stronger

    in parts of The United States and Europe.

    “The flying sauces that were seen recently could be a sign

    that we are not alone.’

    NASA said on their website.

    The Holy month of Ramadaan has now hit the world, with

    Mr. Omar Abdulla said to meet

    with Islamic leaders including Mufti Menk, Zain Bhika and Maher Zain.

    “We wish all our Muslim leaders a peaceful and joyous Ramadan and Eid.’

    Concluding his remarks to The Sunday Times, Mr. Imraan Desai kissed

    that he agrees

    with The Omar Abdulla Group and once the lockdown has been released,

    within a few weeks, we

    will be in lockdown again.

  6. Good morning, my name is Hennie and this is my problem, I have been working at a company sins the 3rd of feb 2020 and on the 29th i was paid by my employer, then i worked from the 1st of march 2020 till the lockdown day on the 26th, i asked my employer about my salary and he looked at me with wild eyes as this was like a question i must not ask, he replied and sed i must not question him as he knows what to do and knows his job, i left it there, on the 31st end of the month i whatsuped him late the evening as i have not received any confirmation to my salary, he replied and again let me know that i must not contact him again as he knows what to do, i again left it there but with panic in my heart as i must support my family, i then googled the labour law and it stats in terms 32 (3) that after 7 day and my salary is late i must take action, well we are at the 6th of may 2020 in lockdown and i have had now message from my employer or from the labour law after i have put in and email with an grievens, i have tryed to register at the UIF and that has failed, so how do i go and how do i fight for my salary as there is no one that wants to help, pls let me know how, where, as i amy sad and my family is looking at me as to what now

  7. I and my fellow workers are facing a similar problem.
    Our company applied for, and received the UIF TERS relief funds,
    which is not a hidden matter, since anyone can go online and see the list of companies
    who have received the payment. Several of us have even seen our payment status.
    The payment was received on the 19 April 2020.
    Yet, we the employee’s have not received any monies, other than what was earned before
    lockdown.
    What is the next course of action?

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