Covid-19

#Lockdown

Government appeals to employers to apply to UIF fund to assist employees

Labour minister Thulas Nxesi. (Photo: Gallo Images / Frennie Shivambu) / Minister of Tourism Mmamoloko Kubayi-Ngubane. (Photo: Gallo Images/ Jeffrey Abrahams)

As South Africa awaits more details about the move to Level 4 of the Covid-19 lockdown, the government announced that the Unemployment Insurance Fund has paid out R3.3-billion, which will reach 862,000 workers. Many employees, however, are still missing out.

Tourism Minister Mmamoloko Kubayi-Ngubane, head of Cabinet’s economic cluster, has emphasised that the National Command Council (NCC) on coronavirus is still considering public comments on the implementation of Level 4 of the lockdown and would only explain the new regulations to be imposed on Friday later in the week.

The government has only days to consider public comments on the “risk-adjusted strategy” President Cyril Ramaphosa announced last week, under which the lockdown will continue under Level 4 after being reduced from Level 5, which has been in place over the last month to prevent the spread of Covid-19.

Kubayi-Ngubane did not respond to a question on how many submissions had been made and the briefing was thin on specifics and details pending the gazetting of the regulations.

Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini Zuma and Trade, Industry and Competition Minister Ebrahim Patel this weekend outlined the government’s plans for Level 4 of the lockdown, explaining that up to 1.5 million employees in certain industries could return to work.

They gave the public only days to respond to the proposals and the NCC will have to consider those suggestions and publish new regulations to guide Level 4 before they come into effect on Friday 1 May.

“The deadline for submission was Monday, 12 o’clock. After that, processing of those applications was being done, so that’s where we are,” said Kubayi-Ngubane in a briefing by the economic cluster on Tuesday 28 April.

“Once that has been presented to NCC, NCC processes it, then through Minister [in the Presidency, Jackson] Mthembu, a media briefing will be arranged for an outcome of… the final regulations, including the activities that will take place, under Level 4.”

The ministers did not say when they would brief the media on the Level 4 regulations but they are expected to be gazetted by Thursday 30 April, a day before they are due to be implemented.

All economic activity other than sectors categorised as essential services have ceased operating since the Covid-19 lockdown was implemented on 27 March and Ramaphosa last week announced a R500-billion stimulus package to offset the economic decline and support vulnerable communities.

More than 103,000 employers representing around 1.75 million employees have applied to the Unemployment Insurance Fund (UIF) to receive assistance through temporary relief measures. 

More than eight million employers are registered with the UIF, representing over eight million workers.

“There are very few employers who are applying on behalf of their workers and employees for this UIF relief benefit. We are asking them to do so, particularly in the farming sector and in the domestic sector. We are really appealing to all our employers to use this facility because there are vulnerable workers who could benefit,” said Mthembu.

The UIF has processed 59,000 of the claims submitted and paid out R3.3-billion so far, said Kubayi-Ngubane, which will benefit more than 862,000 workers.

The UIF has allocated R40-billion to assist workers who have been affected by the lockdown.

“About 10,000 applications could not be processed due to errors and the affected companies have been notified to correct their applications and resubmit,” she said. 

The minister said the UIF is “working around the clock” to meet the demand for assistance and has increased staff at its call centre from 75 to 400, but more businesses need to act in the interests of their employees.

Labour Minister Thulas Nxesi said his department has calculated that 200,000 workers who are entitled to claim UIF benefits have not made claims.

“The reason for these numbers is because some employers have not even dared to help the employees and we continue to appeal to them to help us,” said Nxesi.

Nxesi and Small Business Development Minister Khumbudzo Ntshavheni said businesses that haven’t been paying their employees’ UIF must come forward and acknowledge their debts, which they can pay later, to allow their employees to receive assistance.

Nxesi said workers should not have to suffer because their employers have been irresponsible.

Ntshavheni said relief measures allowed spaza shops to claim R3,500 in working capital and another R3,500 in revolving credit. Municipalities, which register spaza shops, will be encouraged to get stores to apply. DM

Gallery

"Information pertaining to Covid-19, vaccines, how to control the spread of the virus and potential treatments is ever-changing. Under the South African Disaster Management Act Regulation 11(5)(c) it is prohibited to publish information through any medium with the intention to deceive people on government measures to address COVID-19. We are therefore disabling the comment section on this article in order to protect both the commenting member and ourselves from potential liability. Should you have additional information that you think we should know, please email [email protected]"

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