COVID-19 TERS (Temporary Employer / Employee Relief Scheme) UIF

TEMPORARY EMPLOYER/EMPLOYEE RELIEF SCHEME (TERS)

1.    THE CURRENT TERS PROCESS

1.1.     The  TERS  process  came  into  effect  on  11  December  2019  when  it  was approved  by  the Director General  of the Department  of Employment and Labour.

1.2.     In terms of the TERS process, the Unemployment Insurance Fund (UIF) may fund the distressed companies directly in relation to the TERS Allowance.

1.3.     The distressed company will only be funded if it meets the key requirements of the UIF being:

1.3.1.       Distressed  company  is  able  to  demonstrate  that  it  has  been compliant with the relevant UIF legislation;

1.3.2.       If  not  compliant,  the  distressed  company  undertakes  to  pay outstanding  contributions  and  bring  its  declarations  up  to  date within a stipulated timeframe;

1.3.3.       The distressed company is able to demonstrate that it will/or has embarked upon a turnaround or sustainability programme which will result in job preservation at the expiry of the funding agreement; and

1.3.4.       The distressed  company  will be able to meet its  obligations in relation to the UIF legislation.

2.    CENTRAL ADJUDICATION COMMITTEE

2.1.     The Central Adjudication Committee will consider applications of applicants and issue three (3) decisions being:

2.1.1.       If the applications is for wage subsidy, a wage subsidy ruling will be directed to the UIF for processing;

2.1.2.       Where  a  company  requires  over  and  above  wage  subsidy  and training intervention, CCMA will issue ruling directed at the relevant SETA; and

2.1.3.       Where a company requires turn around solution intervention, CCMA will issue ruling to Productivity SA.

3.    SALIENT POINTS OF THE TERS PROCESS

3.1.     To obtain application forms and all relevant details  , please send an email to infoTERS@labour.gov.za 

3.2.     Companies  must  send  an  application  for TERS  to  the  CCMA  (applications should be sent to MosaB@ccma.org.za).

3.3.     Within 5 days of receipt of complete, valid and accurate applications, the adjudication committee will consider the application and   the   company will receive a letter with a Ruling informing them of the success or rejection of the application.

3.4.     A company with a successful application shall be required to enter into a formal Memorandum of Agreement (MOA) with the UIF.

3.5.     A draft MOA shall be sent to the Company for inputs.

3.6.     The draft MOA shall then be subjected to legal scrutiny and vetting. After which the final MOA (with all the required supporting documents) shall be signed by the Company and the UIF.

3.7.     Upon conclusion of the agreement, the first tranche payment shall be made to the company within 5 days. It is important to note that TERS allowances are payable monthly to each participating employee will not exceed R 17, 242.00.

3.8.     A Monitoring Team shall be sent to the Company to ensure that the funds are utilised in line with the signed MOA, and that no bridge of MOA has occurred.

3.9.     The remaining payments shall be made in line with the signed MOA.

4.    EXPECTATIONS FROM APPLICANT TO PAY INVOICES

4.1        Invoice supported by the following :

4.1.1      Proof of employment and list of employees

4.1.2     Salaries of Directors

4.1.3     Dedicated bank account

4.1.4     Registration with Central Supplier Database ( CSD)

4.1.5     Power of Attorney

4.1.6     Turn Around Strategy implementation plan

4.1.7     Report of progress on the implementation plan.

5.    FOR ENQUIRIES , FOLLOW UP, COMPLAINTS AND ESCALATION

5.1      TERS@labour.gov.za 

5.2     Escalation to Director General – Welile.dlwengu@labour.gov.za