BRENTWOOD

2020-07-22

TERS benefit extended to 15 August 2020.

TERS payment terminated on 30 June 2020.

It was announced today that the TERS benefit is reopened until 15 August 2020, the same day that president Ramaphosa extended to life of the Disaster Management Act.

So, TERS is back!

The benefit structure and existing criteria remain the same.

April, May and June applications is expected to be processed by the end of July.

The TERS site is not yet accepting application past the end of June: https://uifecc.labour.gov.za/covid19/

Can TERS be claimed for July 2020? Yes, but not yet. 

Can TERS be claimed for August 2020? Yes, but not yet.

Will payment be pro-rated for August 2020? No details available yet.

Can employers not registered with UIF claim? Yes

Can employees benefit if the employer has not paid UIF contributions? Yes.

Can employees who have lost income as a result of COVID-19 claim? Yes.

Can employees who have been required to take annual leave as a result of COVID-19 benefit from TERS? Yes.

Can the benefit be used for any reason other that assisting the employers to cover salaries? No.

If the employer has part paid the employee, can the benefit still be claimed? Yes.

Can an employer retain the value of the benefit already paid to the employee before TERS paid? Yes.

Can the employer claim even if the majority of employees are working from home? Yes.

Are reduced working hours considered a partial closure? Yes.

Can employers apply if reduced salaries are paid? Yes.

Must a business be in complete shutdown in order to claim?  No

Part payment of salaries:  Payment of less than 100% of salaries can be claimed. TERS cannot be claimed if a full salary is paid.  No employee may receive more than 100% of their normal salary.

When does the employer pay the employee? Within 2 days of receiving the benefit from TERS.

How long does TERS take to pay the employer? After verifying the supporting documents submitted by the employer and, within 10 business days, TERS deposit the funds into the employer’s business account. Realistically some employers have only recently received April’s payment.

Can temporary workers laid-off during lockdown claim? Yes, as long as the reason for them not working is as a result of COVID-19.

Can non-South Africans receive benefits? Yes.

Are benefits only available to employees receiving no payment? No, employees whose income is reduced may also claim.

Can domestic workers apply for TERS?  Yes.
Top up payment by the employer: Any amounts paid by the employer to top up the shortfall between the Terms benefits and normal remuneration does not reduce the TERS benefits. But the salary + TERS payment must not exceed 100% of the employee’s remuneration received before lockdown.

Can an employee get more than their salary? No. TERS payment + employer payment cannot exceed 100% of the normal remuneration.

Can employers credit their staff for annual leave days taken, once TERS payment is made to the employee? Yes

Can employees under quarantine apply for UIF? Yes, if the quarantine is 14 days or longer.  That person applies for the Illness Benefit under the UIF.

If an employee received TERS benefits, but is then retrenched, can that employee claim unemployment benefits from UIF? Yes. TERS is de-linked from the other UIF benefits.

What happens to employees receiving UIF benefits before lockdown? 

The payment from UIF continues until the benefit runs out.

Are the benefits taxable? No.

Is the TERS payment considered remuneration? No.

Is TERS reflected as remuneration on pay slips? No.

Is TERS included in the PAYE report to SARS? No.

How long is the benefit paid? Until 15 August 2020.

Minimum amount of the benefit: R3 500.

Maximum amount of the benefit: R6 700.

Is there a cap of the amount that can be claimed through COVID-19 TERS? Yes. The salary benefits will be capped to a maximum amount of R17 712, 00 per month.

Who will pay the benefit? TERS pays the employer, and the employer pays the employee, except where the employees have already been paid.

With the involvement of a Bargaining Council: TERS pays the Bargaining Council, which pays the employer, which pays the employee.

Minimum size of the workforce to claim: None.

Can claims be made for partial closures/temporary layoff? Yes. A “temporary layoff” is “a reduction in work following a temporary closure of business operations, whether total or partial, due to COVID-19 pandemic for the period of the National Disaster.”

Does an employer need to show financial distress to claim? No. the qualifying criteria is now: “an employer, as a result of the COVID-19 pandemic, close[s] its operations, or a part of its operations, for a 3 (three) months or lesser period.”

How does an employer claim?
- Apply by reporting the total or partial closure to covid19ters@labour.gov.za.
- Automatic response outlining the application process and the documents and information that is required will be sent.  The required documents are:
o A letter of authority from the employer.
o The signed Memorandum of Agreement, or electronic acceptance of the standard terms.
o The UIF’s template which includes details of the employer, the period of closure, the list of employees and their dates of employment and ID numbers, the remuneration received by the employees.
o Proof of remuneration to employees for the previous three months; and
o Confirmation of employer bank account.

Is TERS an employee or employer benefit? It is an employer benefit, specifically to assist the employer to pay its employee’s wages/salaries.

http://www.labour.gov.za/employment-and-labour-ministry-announced-extension-of-covid19-relief-payments-until-august-15-in-budge-vote