Covid-19 - employer/employee relief scheme (TERS) implemented by the Department of Employment and Labour
The Department of Employment and Labour published regulations pertaining to the COVID-19 Temporary Employer/Employee Relief Fund (C19 TERS).
The scheme is aimed at assisting employees where employers are unable to pay them during the lockdown.
The basic criteria, according to the regulations, are as follows:
- should an employer as a direct result of Covid-19 pandemic close its operations for a 3 (three) months or lesser period and suffer financial distress, the company shall qualify for a Covid-19 Temporary Relief Benefit;
- the benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations;
- the salary benefits will be capped to a maximum amount of R17 712.00 per month, per employee and an employee will be paid in terms of the income replacement rate sliding scale (38%-60%) as provided in the Unemployment Insurance Act;
- should an employee's income, determined in terms of the income replacement sliding scale, fall below the minimum wage of the sector concerned, the employee will be paid a replacement income equal to minimum wage of the sector concerned;
- the company must be registered with the UIF;
- the company must comply with the application procedure for the financial relief scheme;
- the company's closure must be directly linked to the Covid-19 pandemic;
- an employee who is being paid by the employer during this period is not entitled to this benefit.
- The employer shall be required to furnish the Unemployment Insurance Fund with the following completed documents:
- Letter of authority from the company; and
- Signed Memorandum of Agreement (MOA) from the employer or bargaining council with the UIF.
We will keep members abreast of any further developments in this regard.