Important Information

Dear Client

Herewith important information for you in this challenging time.  I have been in meetings with experts in Labour Law and we don’t have all the answers yet, but the government is working around the clock to get these answers and I commit to getting the information to you as it gets published. Never before has the Labour Law in South Africa been challenged on this level and at the moment there are no yes or no answers like we are used to in the Labour Law as we know it. The Constitution of South Africa and the Bill of Rights forms the basis of most of the answers and of course the Occupational Health & Safety Act 85 of 1993.     

It is also important that we realise now is the time to be flexible and think out of the box and that employers and employees must stand together. 

Essential Services

If your business is in this category, it is essential that you have the necessary protocols in place. Constant risk assessments are critical. It is also a good idea to issue your employees with letters to allow them to travel for work, should they be stopped by the forces.  

Leave

Employees can request that their leave days be utilised for this period, but it cannot be enforced by the employer at this stage. It is however not cast in stone and a solution can be worked out with consultation with your employees. Depending on the circumstances of your business, through consultation, employees can have access to unaccrued leave or authorised unpaid leave.

Please feel free to contact me should you have any questions with regards to annual leave and covid19.      

It is important to also notice at this stage, in these circumstances, consultation means that you get the input from your employees, but this does not necessarily mean that everyone must agree.  

The Minister of Employment and Labour, Thulas Nxesi, has announced the highly anticipated measures that the Department will put in place to support and mitigate the impact of the COVID-19 pandemic on affected employees who are contributors to the Unemployment Insurance Fund. We don’t know yet when these payments will pay out.

Temporary Lay-Off

Please note that in the event of a temporary lay-off notice pay is not applicable. 

The National Disaster Benefit will be accessible to employers who, as a direct result of the current COVID-19 pandemic, decide to temporarily close their business. This will constitute a temporary lay-off. If the employer cannot pay his/her employees for this period, he/she can apply for the Benefit from the UIF. The Benefit will not be linked to the UIF’s normal benefit structure and will be paid as a flat rate - irrespective of term of service - up to the minimum wage of R3,500 per employee for the duration of the temporary business closure or a maximum of three months, whichever is the shorter period. This Benefit may not be used concurrently with any other UIF benefit.

The following documents are required when applying for this benefit:

• UI19 and UI2.7 (completed by Employer)
• UI2.1 (application form)
• UI2.8 (bank form completed by the bank)
• A letter from the Employer confirming company shutdown or employee’s “temporary lay-off” is due to the Corona Virus
• Copy of employee’s ID document

Should an employee fall ill or is temporarily laid off or unemployed for longer than three months, the normal UIF benefits as below will apply.

Reduced Work Time

Should the business remain operational but implement Reduced Work Time, the Benefit payable to the employee will be the difference between what the employer pays and the UIF benefits should the employee lose employment.

The following documents are required when applying for this benefit:

• UI19 and UI2.7 (completed by Employer)
• UI2.1 (application form)
• UI2.8 (bank form completed by the bank)
• A letter from the Employer confirming Reduced Work Time is due to the Corona Virus
• Copy of employee’s ID document

Illness Benefits/Quarantine (Special Leave)

Where an employee needs to be quarantined for 14 days, the Illness Benefit process will apply. A Confirmation Letter from both the employer and the employee must be submitted along with the application as proof that both the employer and employee agree to the quarantine (special leave). In this instance the letters will stand in place of the medical certificate normally required for the Illness Benefit as self-quarantined will be entered into without prior consultation with a medical practitioner. However, should an employee be quarantined for more than 14 days, a medical certificate from a registered medical practitioner must be submitted along with the Continuation Form UI3.

The following documents are required when applying for this benefit:

• UI19 and UI2.7 (completed by Employer)
• UI2.2 (a portion of which is completed by the Doctor)
• UI2.8 (bank form completed by the bank)
• Employer Declaration
• Employee Declaration
• Copy of employee’s ID document

In the event where more than 50 employees are being retrenched, the Department has established Rapid Response Teams to assist companies to process the applications. The teams will be deployed to the employer’s premises in each province and employers are requested to contact their local labour offices to arrange appointments.

Please feel free to join my WhatsApp group for updates and information here.

Should you have any questions, please don’t hesitate to contact me. More important, make sure you have constant communication with your employees during this time. Make sure you have a current Covid19 protocol and one for after the lockdown.

Together we can flatten the curve.

Best wishes