Temporary Employer/Employee Relief Scheme Easy Aid

Temporary Employer/Employee Relief Scheme Easy Aid

• 24 March 2020
• Payroll
• Department: Employment and Labour

Important:

The Temporary Employer/Employee Relief Scheme (TERS) process came into effect on 11 December 2019 when it was approved by the Director General of the Department of Employment and Labour. 

THE CURRENT TERS PROCESS

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. In terms of the TERS process, the Unemployment Insurance Fund (UIF) may fund distressed companies directly in relation to the TERS Allowance. The distressed company will only be funded if it meets the key requirements of the UIF being:

1. Distressed company is able to demonstrate that it has been compliant with the relevant UIF legislation;
2. If not compliant, the distressed company undertakes to pay outstanding contributions and bring its declarations up to date within a stipulated timeframe;
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
4. The distressed company will be able to meet its obligations in relation to the UIF legislation.

CENTRAL ADJUDICATION COMMITTEE

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

1. If the applications are for wage subsidy, a wage subsidy ruling will be directed to the UIF for processing;
2. Where a company requires over and above wage subsidy and training intervention, the Commission for Conciliation, Mediation and Arbitration (CCMA) will issue ruling directed at the relevant Sector Education and Training Authority (SETA); and
3. Where a company requires turn around solution intervention, the CCMA will issue ruling to Productivity SA.

SALIENT POINTS OF THE TERS PROCESS

To obtain application forms and all relevant details, please send an email to infoTERS@labour.gov.za. Companies must send an application for TERS to the CCMA (applications should be sent to MosaB@ccma.org.za). 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. A company with a successful application shall be required to enter into a formal Memorandum of Agreement (MOA) with the UIF. A draft MOA shall be sent to the company for inputs. 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. 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 R17,242.00. 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 breach of MOA has occurred. The remaining payments shall be made in line with the signed MOA.

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This article first appeared on labour.gov.za.

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