UNEMPLOYED INSURANCE FUND (UIF) APPLICATION GUIDELINES COVID-19

The stark reality for many Employers is their inability to pay their employees during the national lockdown period and/or thereafter should the period of the lockdown persist for longer than the current 21-day period.

It is during these critical and challenging times that both Employers and Employees are urged to take solace in the Unemployment Insurance Fund (UIF). The following types of benefits may be accessible to them depending on their individual circumstances. It is vital for everyone to know the process of claiming UIF during Covid-19 lockdown in South Africa.

National Disaster Benefit Application:

The Employer may decide, as a direct result from the current Coronavirus pandemic, to close their business for a period and send Employees home. This constitutes a temporary lay-off. If Employers cannot pay their Employees for this period, they can apply for the “National Disaster Benefit” from the UIF.

This benefit will be available 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.

Required Forms and Documentation:

UI19 and UI2.7 (completed by Employer)

UI 2.1 (Application form)

UI 2.8 (Bank form completed by the Bank)

A letter from the Employer confirming that the Company shutdown or Employee’s “temporary lay-off” is due to the Coronavirus

Copy of the Employee’s ID document.

Employers are urged to be mindful that this benefit will be at a flat rate equal to the National Minimum Wage (NMW) of R3 500,00 per employee for the duration of the lockdown or a maximum of three months, whichever period is the shortest.

Moreover, an Employer or Employee may not apply for the “National Disaster Benefit” and any other UIF benefit simultaneously.

Reduced Work Time Application:

Where a Company shuts down for a certain period or implements Reduced or Short Time.

The benefit payable is the difference between what the Employer pays and the normal UIF benefit payable should an Employee lose employment.

Required Forms and Documentation:

UI19 and UI2.7 (completed by Employer)

UI 2.1 (Application Form)

UI 2.8 (Bank form completed by the Bank)

A letter from the Employer confirming that the Reduced Work Time is due to the Coronavirus

Copy of the Employee’s ID document.

Illness Benefits Application:

Where an Employee has been quarantined for 14 (fourteen) days, the Illness Benefit process will apply.

A Confirmation Letter from both the Employer and Employee must be submitted together with the application as proof that both the Employer and Employee had agree to the 14-day “special leave”.

In this instance the letters will be in lieu of the medical certificate as the beneficiary would have self-quarantined without prior consultation with a medical practitioner. Benefits will be paid based on these letters.

Should an Employee be quarantined for more than 14 days, a medical certificate from a medical practitioner must be submitted together with the Continuation Form UI3.

Required Forms and Documentation:

UI19 and UI2.7 (completed by Employer)

UI2.2 (a portion of which is completed by the Doctor)

UI 2.8 (Bank form completed by the Bank)

Copy of Employee’s ID document.

Death Benefit Application:

Benefits are paid to the beneficiaries of the deceased. People eligible to apply are a Spouse, Life Partner, Children and nominated persons, in that order.

Required Forms and Documentation:

UI19 and UI 53 (completed by the Employer)

UI 2.5 or UI2.6 (Deceased Application)

Death Certificate

ID of Deceased and Applicant

UI 2.8 (Bank form completed by the Bank)

Copy of ID document.

What are the methods for UIF submission surrounding Covid-19?

Employers are urged to complete the UI 19 Form stating the date of and reason for termination. The forms can be submitted as follows:

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).

We at SERR Synergy urge Employers not to despair as the aforementioned steps are critical and we pride ourselves on providing an in-depth understanding of the UIF regulations. We will do our best to assist with and supervise the process through our provision of COVID-19 legislative updates, legal advice and guidance on the requisite and accompanying UIF documentation. We strive to provide a professional and efficient service and solutions to Employers at all times.

About the Author: Hilisha Sewnarain joined SERR Synergy in February 2018 and is currently a Labour Legal Advisor. Hilisha studied at the University of KwaZulu-Natal and completed her LLB degree in 2014. She has four years of experience in the legal and labour relations field respectively.