This is the best summary of benefits as we understand at the moment. If you have any queries, please contract Brendan Guy brendan@labourguy.co.za
| Benefit Type | Reduced Working Time (RWT) | Temporary Employee / Employer Relief Scheme (TERS) (Previously the National Disaster Benefit) |
| Who makes this application? | Employee | Employer |
| Who should apply? | Employees who are not receiving any remuneration during this lockdown; orEmployees who are receiving a portion of their remuneration. | Employers who cannot afford to pay their employees during the lockdown as a result of financial distress caused by the lockdown. |
| Application Criteria / Required Documents | UI19 and UI2.7 (completed by Employer)UI 2.1 (application form)UI 2.8 (bank form completed by the bank)A letter from the Employer confirming Reduced Work Time is due to the Corona VirusCopy of employee’s ID document. | Letter of authority on letterhead giving authorisation to an individual to lodge a claim Memorandum of Agreement (between UIF and Employer) this is not necessary if employer has under 10 employees.Prescribed template with critical information Confirmation of bank account details in the form of certified latest bank statement and separate (or cleared) bank account Proof of the last three months’ employee salaries |
| Ideal Applicants | Employees who are not working as a result of the complete closure and who are not receiving any payment from their employer; or Employees who are receiving some payment from their employer, regardless if they are working. Employees who have UIF Benefits to claim. | Employers with established financial auditing resources.Employers who want to alleviate the administration of having employees sign various forms / cannot have employees sign various forms. |
| Benefits | Employees will be paid according to the sliding scale and their UIF benefits. Could be paid more than R3 500.00.Standard UIF Forms required so less onerous than TERS application but effectively same benefits for employees. | Employees do not need to complete or sign forms meaning the application can be driven solely by Employer.Not linked to employee’s UIF benefits.Employees can be paid out more than R3 500.00 (between R3 500.00 to R 6 730.00) Does not rely on UIF credits.Estimates of roughly 30 days from application to payment. |
| Disadvantages | The combination of what the employee is receiving from the employer and UIF cannot exceed what UIF would have paid the employee had they received nothing from the employer.Linked to the employees UIF benefits so when the employee’s UIF credits are exhausted, benefits will cease. | Onerous in respect of financial auditing responsibilities and separate bank account requirements. Pay out capped at a salary of R17 712 per month. Benefits are paid out in terms of a sliding scale (38%-60%), the highest benefit payable to be R6 730.00 per month and the lowest to be R3 500.00 per month.Employees who are on short-time / receiving partial pay may be excluded but that is still unclear. |