1. Temporary Employer/Employee Relief Scheme (TERS) benefits option

Please see the attached documents and explanation notes should you which to apply for the Temporary Employer/Employee Relief Scheme (TERS) benefits.

This scheme is intended to provide emergency relief to enable employers to pay employees who are temporarily laid off due to the Covid-19 crisis.
The directive appears in the Government Gazette (No. 43161) on 26 March 2020, sets the C19 TERS out the basis of the scheme as follows:
“Should an employer as a direct result of Covid-19 pandemic close its operations for a 3 (three) months or lesser period and suffer financial distress, the company shall qualify for a Covid19 Temporary Relief Benefit.”
Features of the COVID-19 TERS option:

  1.  UIF ‘Reduced working time’ option

Although indications are that the C19 TERS is likely to receive priority and seems to be preferred by Department of Labour and Employment, the ‘reduced working time’ option is still available to employers and employees.

The ‘reduced working time’ was originally intended for employees who have to work short time. This benefit was introduced fairly recently (2018) in the following terms:

“A contributor employed in any sector who loses his or her income due to reduced working time, despite being employed, is entitled to benefits if the contributor’s total income falls below the benefit level that the contributor would have received if he or she had become wholly unemployed, subject to that contributor having enough credits.”

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:

Features of the ‘reduced working time’ option:

All documents and guides are attached for your convenience.

Please feel free to contact Lee (lee@hlb.co.za), Malcolm (Malcolms@hlb.co.za) or myself if you require assistance or otherwise Mandy (Mandyl@hlb.co.za) or Gerda (Gerda@hlb.co.za) in the accounting and payroll departments.