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COVID-19: TERS Application for UIF benefits update

Employment Law , , , , 2

All employers are required to register for the TERS benefit by sending an e-mail to covid19ters@labour.gov.za, but employers with more than 10 employees as well as employers using a payroll system, will be required to complete the Memorandum of Agreement (MOA) which can be received through an auto reply to the email address covid19ters@labour.gov.za or as linked here.

These employers will receive a bulk payment from UIF and will be responsible for the distribution of the funds to its employees and provide an audit trail. Employers with 10 or less employees will not have to distribute the funds as employees will be paid directly by UIF.

If an Employer has less than 10 employees and/or no payroll system, they will not be required to complete the MOA and can follow the easy prescribed method.

All employers will receive an automated response from covid19ters@labour.gov.za and a number of compulsory documents will be provided.

Employers are encouraged to submit claims as soon as possible as it will take UIF some time to process the large number of expected claims. Any subsequent updated documents will supersede any outdated documents already submitted.

Employers should note that claims should be mailed to covid19claims@labour.gov.za.

Please note that employers who resort under a bargaining council, should confirm with such a council whether it has reached an agreement with UIF in respect of TERS benefits, in which case claims must be submitted through the relevant bargaining council in accordance with that particular agreement.

Employers are reminded to not claim UIF unless the situation is dire, or withhold funds from employees, as the UIF can issue an audit on your account at any time. If it is deemed that money has not been paid to employees or misappropriated employers will be held liable by the law.

List of required documents for TERS application (templates linked):

  1. Letter of Authority
  2. Memorandum of Agreement (MOA)
  3. Prescribed template that will require critical information from the Employer
  4. Confirmation of Employer details
  5. Evidence / payroll as proof of last three months employee(s) salary/ies
  6. Confirmation of Employer bank account details in the form of a certified latest bank statement.

References (linked):

(i)                Covid -19 TERS EASY AID GUIDE

(ii)               The body of the Auto Reply Email received from UIF

 

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COVID-19: Clothing industry reaches agreement on payment of wages

Employment Law , , , ,

An collective agreement by the Bargaining Council for the Clothing Manufacturing Industry regarding the payment of wages to employees in the clothing sector during the national lock down to combat the spread of the Coronavirus, has been extended to non-parties in the industry by the Minister of Employment and Labour, with effect from 26 March 2020.

The primary aim of this agreement is to ensure that workers are not left to face the lock down period without income. The clothing manufacturing industry agrees that it cannot be left up to government alone to address the impact of the lock down on industry and employees and will play a supportive role in this effort.

This agreement is in effect as of 26 March 2020 and determines that employers in the industry and the Unemployment Insurance Fund (UIF) will take turns to pay the employees’ weekly wages for a provided 6-week period despite the lock down period being only 3 weeks long.

Payments will be scheduled as follows:

Week 1

The employer will pay deferred wages for work performed during the week prior to the lock down.

Week 2

a – The employer will pay deferred wages for work performed      during the week of the lock down,

b – The balance of the wages will consist of workers’ funds received from the UIF in cases where the lock down started before a full week’s work was performed.

Week 3

The employer will pay a full week’s wages.

Week 4

Worker’s funds from the UIF will pay a full week’s wages.

Week 5

The employer will pay a full week’s wages.

Week 6

Worker’s funds from the UIF will pay a full week’s wages.

All payments due to employees from the employer during the first two weeks shall be paid to employees, irrespective of whether funds were received from the UIF. All normal statutory deductions shall also continue to be effected during this 6-week period.

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Use the lock down to your advantage

Employment Law , , , ,

We find ourselves in unprecedented times, after President Ramaphosa placed South Africa in a 21-day lock down to combat the spread of the COVID-19 virus.

While a pandemic is naturally unpredictable, many labour issues sprout from oversights that are predictable, and thankfully, can be rectified. These pertain to an absence of contracts and policies that set legal boundaries and establishes responsibility in the case of transgression.

According to the Basic Conditions of Employment Act (BCEA) it is required by law that every employer provides a contract of employment to the employee on no later than the first day of work. The contract must stipulate the parties entering into the employment agreement, the terms of service, and the conditions of employment – including remuneration, deductions, hours of work, overtime, leave and termination of employment.

Another pitfall, often overlooked especially by smaller companies, is the need for company policy documents which often lead to successful challenges by disciplined or dismissed employees at the CCMA for unfair labour practice. Unfair labour practice is defined by Section 186(2) of the Labour Relations Act (LRA) as “any unfair act or omission that arises between an employer and an employee…” Without a company policy in place – along with a documented record that the employee had been informed and agreed to the stipulations in a policy – it can be an extremely difficult task to act against employees. The employee can, as a principle of unfair labour practice, claim that he was never informed of the policy s/he transgressed and has the right to conclude that it does not exist.

Drafting company policy documents are not without their own legal difficulties and is best to be done in consultation with an experienced labour law expert. Policies that may be required by any company, irrespective of size, include:

  • Disciplinary & Grievances Policy
  • Company Communications Policy
  • Company Vehicles Policy
  • Computer Usage Policy
  • Corruption, Gifts and Kickbacks Policy
  • Employment Equity Policy
  • Performance Management Policy and Procedure
  • Sexual Harassment Policy
  • Smoking Policy
  • Telephone Policy
  • Travel Policy
  • Health & Safety Policy
  • Emergency and Disaster Management Policy

Incorporating such matters into a contract means that any transgression is then not only a breach of company policy but also a breach of contract – putting the employer on much more solid ground should any dispute arise.

Another minefield in the dispute landscape is the lack of documented training records. Following on the same principle as above, an employee that is disciplined or dismissed for poor work performance, may challenge such a sanction on the basis that they were not properly trained in the task/system which lead to the disciplinary action, thus rendering any sanction of poor performance to be unfair. A detailed training record on file of any training sessions, coaching (informal or formal) offers great insurance from a disgruntled, non-performing employee.

Time spent on closing loopholes to prevent disciplinary or behavioural headaches is always well-spent, and best done sooner rather than later. In the spirit of the lock down, use any available time in the next three weeks to re-examine employee records and close any gaps you may find.

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COVID-19: Documentation for essential services employees

Bank And Financial, Corporate, Employment Law , , , , 2

In terms of the Government Gazette, dated 25 March 2020 No. R 398 Disaster Management Act, 2002: Amendment of Regulations issued in terms of Section 27 (2) please find attached the list of essential services  industries which will be permitted to work during this nation lock down period commencing 26 March 2020 at 23:59.

Please be advised all persons employed at essential services, such as supermarkets, chemist’s, hospitals, etc. must always have a letter on their person which must comply with the following:

  1. The letter must be an original official document on company letter head.
  2. The full name/’s, Surname, ID number and address of employee.
  3. The employer’ s name and address.
  4. Business hours of the company.
  5. Name and contact number of Manager / Director.
  6. Original signature of Manager / Director.

This letter and ID/Drivers licence (any form of ID with a photo) must always be in possession of the employee.

If an essential company employs cleaners or security personnel, they must have the same letters from their companies.

If the company has a contract with a transport provider, that transport provider must also be in possession of a letter to state that reason.

Nurses and security personnel with appointment certificates which have a photo displayed may also use it as proof of identification.

KINDLY NOTE THAT WE WILL REMAIN OPERATIONAL AND AVAILABLE AT ALL TIMES THROUGH THIS NATIONAL LOCK DOWN. YOU ARE WELCOME TO CONTACT US AS USUAL FOR ANY ASSISTANCE ON ALL MATTERS INCLUDING CLARITY ON THE ABOVE.

List of essential services  industries (PDF):

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