COVID-19 Relief Information

Employee/ Employer Relief Scheme (“TERS”) 

General information 

• A company which has to close its operations for a period of three months or less due to the COVID-19 pandemic will qualify for TERS benefit, provided that:(a) The company is registered with the UIF;
  (b) The company must comply with the application procedure for the financial relief scheme; and
  (c)The company’s closure must be directly linked to the COVID-19 pandemic.
• The benefit shall be de-linked from the UIF’s normal benefits and therefore the normal rule that for every four days worked the employee accumulates a one day’s credit and the maximum credit days payable is 365 for every four years will not apply.
  

• The benefit will only be for the cost of salary for employees during the temporary closure.
  

• The relief covers a portion of the employee’s salary according to the income benefit sliding scale in the UIF Act (38% to 60%). The maximum amount payable is R6 731, calculated on a salary of R17 712. The lowest benefit will equate to the minimum wage.
  

• In addition to the above, an employee who is in quarantine for 14 days due to the COVID-19 pandemic will qualify for illness benefits. Where the employee is in an agreed self-quarantine for 14 days then the employer and employee must both submit confirmation of this. Confirmation letters will suffice in this regard. Where the employee is quarantined for a period exceeding 14 days then a medical certificate must be submitted by a doctor for continued payments.
  

• Employers must apply by reporting their closure via email to Covid19ters@labour.gov.za. An automatic response will be generated setting out the application process. 
  

Process for Application:  

The employer shall be required to follow the below process and submit the following documents: 

• Key Documents required: 

• Letter of Authority, on an official company letterhead granting permission to an individual specified to lodge a claim on behalf of the company – see Attachment 1 
• MOA (completion of the agreement between UIF, Bargaining Council and Employer); Please note that this is only applicable to employers that has more than 10 employees – see Attachment 2 

• Prescribed template that will require critical information from the employer – see Attachments 3, 4& 5, specific information on how to use these attachments is included below. 
• Evidence/payroll as proof of last three months employee(s) salary(ies) 
• Confirmation of bank account details in the form of certified latest bank statement. 

All documents submitted will be subject to verification. 

• Submission Process: 

Submit/transmit all documents as required to UIF via dedicated mailbox      Covid19UIFclaims@labour.gov.za  

• MOA Conclusion: 

Conclusion of the MOA between parties – note as above this is only applicable to companies with 10 or more employees. 

Payment will only be effected after MOA sign off between the Fund and the Employer/Bargaining Council. 

• Additional Information: 

• • National Minimum wage per sector must be stated by the employer and documentary proof to be submitted with the other documents / information. This is crucial and incorrectly stated values might result in serious delays in the processing of the benefit payments.
     
  • Opening of special account is only applicable to Bargaining council.
     
  • If you represent more than one employer, please submit one template per employer.
    

• • The means to payment is critical and provide banking details as per the mode selected, example, if the payment should go to the employer, then the employer’s special banking account should be given – only applicable to Bargaining council.
  • However, proof of payment is required to satisfy that the payments indeed went to the employees. This is also critical, if further payments are required.
  • Please note the enquiry telephone to enquire on the claims lodged: 012 337 1997.
    

HOTLINE: UIF has developed a hotline number: 012 337 1997 for Covid–19 TERS Benefit enquiries during the lockdown period.

• Information for use of Attachments 3,4 & 5 

Payroll Companies: (SEE Attachments 3 and 4)

* Note: Attachment 3 is the template and Attachment 4 is an example of how the spreadsheet will look after completion.  

1. Filename:
   The Filename should be in the following format:UIREFERENCENUMBER_ddmmmyyyy_uniquesequence.csv  For example – 00000012_25mar2020_01.csv
   
   The unique sequence number can be a number which is not used to send file with same name – so when you send file first time uniquesequence can be 1, when sent second time it can be 2.
2. Header within File:
   File should start with a Header – H|DATE DDMMMYYYY
3. Column Heading: 
   The information required in columns is as per the below:
   
   
   • UIF Reference Number 
   • Shutdown From (DD-MMM-YYYY) 
   • Shutdown Till(DD-MMM-YYYY) 
   • Trade Name 
   • PAYE number 
   • Contact Number 
   • Email Address
   • ID Number 
   • First Name 
   • Last Name 
   • Renumeration (Monthly) 
   • Employment Start Date 
   • Employment End Date 
   • Sector Minimum wage per month 
   • Leave Income(During Shutdown) 
   • Bank Name 
   • Branch Code 
   • Account Type 
   • Account Number

    

4. The values of remuneration should not be comma separated. Example – 26000.90 and not 26,000.92
5. All the dates in CSV file should follow the date format DD-MMM-YYYY – Example – 23-APR-2020
6. Sector Minimum wage per month value is Mandatory. A blank value will result in error.
7. Account Type value should reflect as below. Please use the Account Type ID instead of Account Type description.
   

   ACCOUNTTYPEID	ACCOUNTTYPE
   1	Current Account
   2	Savings Account
   3	Transmission Account

    

8. Footer
   Each file should have footer record as under F|2050.  2050 is the number of employee records in the file.
   

No payroll software: (Use Attachment 5) 

This format is only for small employer who have no payroll software. 

1. The values of remuneration should not be comma separated. Example – 26000.90 and not 26,000.92
    
2. All the dates in EXCEL file should follow the date format YYYY/MM/DD – Example – 2020/04/23
3. Sector Minimum wage per month value is Mandatory. A blank value will result in error.
    
4. Account Type value should reflect as below. Please use the Account Type ID instead of Account Type description. Use 1 for Current, 2 For Savings and 3 for Transmission Account.
   

   ACCOUNTTYPEID	ACCOUNTTYPE
   1	Current Account
   2	Savings Account
   3	Transmission Account

Downloads:

• Attachment 1 – Letter of Authorisation (Template) 
• Attachment 2 – Generic Draft MOA TERS Inputs
• Attachment 3 – Payroll Companies (Template)
• Attachment 4 – Payroll Companies Sample CSV for Employers
• Attachment 5 – National – disaster Payment (Excel Template)
• TERS Summary Information
• COVID-19 Temporary Empoyee or Employer Relief Scheme
• COVID-19 TERS Easy Aid

SMME Debt Relief Finance Scheme 

Small businesses will receive debt relief from the government during the coronavirus pandemic. 

The guidelines to apply for the debt relief finance scheme and business growth or resilience facility are on the development’s website. See online application form here. 

Note, only SMMEs registered on the database will be considered – visit www.smmesa.gov.za to register.

The department also appeals to South African-owned, registered and tax-compliant SMMEs in the medical supply and non-food field to assist in the manufacture and supply of goods to manage the impact of the pandemic. 

 Qualifying criteria 

• The business must have been registered with CIPC by at least 28 February 2020 
• Company must be 100% owned by South African Citizens 
• Employees must be 70% South Africans
• Priority will be given to businesses owned by Women, Youth and People with Disabilities 
• Be registered and compliant with SARS and UIF 
• Seda will assist micro-enterprises to comply and request for assistance must be emailed to debtrelief@seda.org.za 
• Whereas small and medium enterprises must ensure own compliance 
• Registration on the National SMME Database – https://smmesa.gov.za 
• Proof that the business is negatively affected by COVID-19 pandemic 
• Complete the simplified online application platform 
• Company Statutory Documents 
• FICA documents (e.g. Municipal accounts, a letter from traditional authority) 
• Certified ID Copies of Directors 
• 3 months Bank Statements 
• Latest Annual Financial Statements or latest Management Accounts not older 
• Three months from date or application – where applicable 
• Business Profile 
• 6 months cash Flow Projections- where applicable 
• Copy of Lease Agreement or Proof ownership if applying for rental relief 
• If applying for payroll relief, details of employees as registered with UIF and including banking details – will be required as payroll payments will be made directly to employees 
• SMME employers who are not compliant with UIF must register before applying for relief 
• Facility Statements of Other funders 
• A detailed breakdown on application of funds including salaries, rent etc. 

Application process 

• Register https://smmesa.gov.za 
• Complete online Application Form.
  
• Upload Requires supporting documents. 

• The documents can be found on the following websites: 

www.dsbd.gov.za; www.sefa.org.za; www.seda.org.za; www.gcis.gov.za; www.mybindu.org.za. 

For more information, email info@dsbd.gov.za or call 086-066-37867 

Downloads:

• SMME Business Growth Resilience Facility
• SMME Debt Relief Scheme

South African Futures Trust (SAFT) 

The Oppenheimer family have set up a new trust, the SA Future Trust (SAFT), to disburse the family’s R1-billion that it has pledged to assist employees of small businesses.  Business owners can apply to access the fund via the country’s four main banks, the trust will disburse interest-free loans to employees over a five-year term. 

There are no minimum monthly payments requirements attached to the loan and that it only needs to be settled in full at the end of the term. Employees carry no liability for the repayment of the loan. 

Qualifying small businesses will get a R750 per qualifying employee per week, over a period of 15 weeks, or R11 250 per permanent employee. The total loan amount is a function of the number of employees to be included. 

Eligibility criteria for SMEs 

• Annual turnover below R25 million 
• Must have been trading for at least 24 months 
• It must have been a sustainable business at 29 February 2020 
• It must have been adversely affected by the Covid-19 outbreak. 

How to apply 

• The scheme is currently available to clients of the four banks.  SMMEs need to apply through their main bank. The partner banks are Nedbank, Absa, Standard Bank and FNB. 
• Once approved, the funds will be paid directly to the nominated employees, however liability for the loan remains with the business. 

Required documentation 

• Company identification 

• Registration number (for CCs) 

• Master’s reference number (for trusts) 
• ID number and address (for sole proprietors) 

• PAYE number 
• Income tax number 
• Confirmation of employment status of employee. 

Applications will be processed from 3 April 2020.  More detailed information, including the application forms and supporting documents requirements will be published over the coming days. 

National Disaster Benefit Fund (UIF)

How it works:
An employer may decide, as a direct result from the current Coronavirus (COVID-19) pandemic to close their
business for a period and send employees home. This constitutes a temporary lay-off. If the employer cannot
pay his employees for this period, the employer can apply for the “National Disaster Benefit” from the UIF.

The benefit will be at a flat rate equal to the minimum wage (R3 500) per employee for the duration of the
shutdown or a maximum period of three months, whichever period is the shortest.

If an employee is ill, temporary lay-off or unemployed for longer than three months, the normal UIF benefits
as explained below will apply.

Although not expressly stated, this scheme should also be available to employees that are on temporary lay-
off without pay during the Covid-19 crisis. The following documents need to be submitted:

• UI 19 – Attachment 1 (completed by employer)
• UI 2.7 – Attachment 2 (completed by employer)
• UI 2.1 – Attachment 3 (completed by employee)
• UI 2.8 – Attachment 4 (bank form completed by bank)
• Letter from employer confirming reduced work time (or lay-off) is due to the Coronavirus
• Copy of ID document

How to apply:
Completed documentation can be submitted:

• Online at www.ufiling.co.za (Illness benefits)
• Email the application to the nearest UIF processing Centre. (Illness/ Reduced Work Time/Death
  benefits)
• Fax the application to the nearest UIF processing Centre. (Illness/ Reduced Work Time/Death
  benefits)

Application forms can be downloaded from the Department of Employment and Labour
website: www.labour.gov.za.

HOTLINE: UIF has developed a hotline number: 012 337 1997 for enquiries during the lockdown period.

Downloads:

• COVID-19 UIF Guide
• Attachment 1 – UI19 – Employers Declaration
• Attachment 2 – UI2.7 – Remuneration Whilst in Employment
• Attachment 3 – UI2.1 – Application for Unemployment Benefits
• Attachment 4 – UI2.8 – Authorisation Pay Benefits into Banking Account
• UI6A – Declaration to Confirm Unemployment Status

Workmen’s Compensation Fund

Downloads:

• Notice of Compensation for Ocupationally Aquired Corona Virus Under COIDA Amended Act

Industrial Development Corporation (IDC)

Downloads:

• Essential Supplies Funding Intervention COVID-19