It has been announced that the regualtions for how employees will receive funds from the Temporary Employer/Employee Relief Scheme (TERS) directly into their bank accounts.
The original way money was distributed was that UIF would have the money givento employees and employees then had the responsibility of paying employees. However, it was found that employers were not paying employees and this did not sit well with the Department of Employment and Labour.
Now with this change, the time period that employees have to wait for their funds to be received is now shortened and there is certainty that they will be receiving the money they are entitled to.
Department of Employment and Labour Minister, Thulas Nxesi, said, “While the claim is submitted by the employer who would have all the information that is pertinent to make the payments, the actual payment goes straight to the account of the worker”. Nxesi says payments are now made within 24 to 48 hours after applications are cleared.
Some employers have complained that they did not receive any guidance from the UIF about how the money should be split among the employees. They were also uncertain about how much each worker should be paid. This new method therefore helps them.
Due to the UIF’s demand going from the thousands to millions, they have improved and expanded their operations.
Employees can now also apply to receive funding from UIF themselves, should their employer not have applied to receive funding from TERS. It has not yet been confirmed how individual workers can apply.
