Durban - Businesses that fail to obtain a compliance certificate from the Unemployment Insurance Fund (UIF) as a result of non-compliance could be excluded from doing business with the government.
So said Malesela Makgamatho, UIF Director at a Seminar in Sandton, Gauteng on Thursday.
The Seminar was attended by close to 500 employers and stakeholders from various sectors.
“All government departments and most state owned entities require a UIF compliance certificate from potential service providers who want to do business with them. If a company fails to provide the certificate, it can be disqualified from doing business with government. It is very important to comply with UIF,” said Makgamatho.
He explained that the compliance certificate could be refused by the fund for various reasons, including failing to pay contributions on time to the UIF.
“If we decline your application for a compliance certificate, we will explain the reasons in the rejection letter and outline the steps you must take in order to qualify,” Makgamatho told employers.
Godwin Phoshoko, UIF assistant director, said it was illegal for workers to draw unemployment benefits from UIF while they were employed.
He explained that the major cause that led to employed people getting paid benefits from UIF was non-compliance by employers who fail to declare the information of their workers to the fund.
Phoshoko warned that employees who continue drawing unemployment benefits whilst employed could be banned from receiving any UIF benefits for up to five years.
“I am urging all employers to declare and submit the information of their workers to the Fund on a monthly basis to avoid these cases,” he said.