JOHANNESBURG -The government has assured the business community of short-term financial relief for companies facing liquidity challenges to pay their employees during the lockdown period through the Covid-19 Temporary Employer-Employee Relief Scheme (TERS) Benefit.
President Cyril Ramaphosa last week declared a 21-day nationwide lockdown ending on April 16 as a preventative measure against the spread of the coronavirus.
The lockdown affects all types businesses except for those providing essential services and their employees.
It was widely reported last week that R30 billion had been allocated to a special National Disaster Benefit Fund, which will pay Unemployment Insurance Fund (UIF) benefits of up to R3 500 for up to three months to all qualifying workers.
“As a caring organisation, we will continue monitoring the situation and assist workers and companies to limit the negative financial impact of the Covid-19 on workers, business and our economy,” Maruping said.
“I would also like to caution workers and companies that submitting a fraudulent claim is a criminal act that will be prosecuted to the fullest extent of the law.”
The Minister of Employment and Labour, Thulas Nxesi, has urged employers who are unable to pay the full salaries of workers to apply for Covid-19 TERS Benefit.
The benefit is applicable to all employers who are registered with UIF and make monthly contributions as required by the Contributions Act.
Maruping said the Covid-19 TERS Benefit was de-linked from the other UIF benefits and other processes, but applications were subjected to normal verification and validation processes of the fund.
The UIF will be electronically processing applications for the Covid-19 TERS Benefit and employers can apply by sending an email to [email protected]
Upon sending the email, applicants will receive an automated reply which outlines all the steps and details, including the requirements to claim benefits.
The UIF said manual claims will not be accepted during the lockdown in order to reduce contact between people to curtail the spread of the pandemic.