When Can Employees Claim For UIF

What is the benefit called and what is it for? When should you claim? How does it work? What application forms are required?
Reduced work time benefit

This benefit
applies if

  • a company shuts down for a certain period,
  • employees are laid off temporarily,
  • or short time is implemented.
Employees can claim for this benefit during and after the lockdown.
  • Employees can claim UIF for the difference between their normal pay and what they earned during a short time andduring temporary layoffs.
  • The UIF formula of 38-60% of the UIF salary cap of R17 712 will be applied, and the employees’ period of contribution to the UIF fund as well as the previous times they claimed from the fund will also be taken into account to determine what they will earn.
  • The maximum UI benefit will be paid if the employer does not pay the employee during the shutdown period. However, if the employers pays part of the salary during the shutdown period, the UI benefit could be reduced by that amount.
    • UI19 and UI2.7 (completed by employer – indicate Code 17 on the UI19 form)
    • UI 2.1 (application form)
    • UI2.8 bank form completed by the bank, a bank statement, or confirmation letter from the bank

A letter from the employer confirming Reduced Work Time or Employee’s Temporary layoff is due to the Corona Virus

  • Copy of employee’s ID document
Illness benefit/14-days quarantine

This benefit is available if an employee is self-quarantined for 14
days.
In addition, the normal illness benefits also
still apply (see below).

This benefit is available after the lockdown. Employees who were
placed on 14-day quarantine prior to the lockdown can claim for that
period retrospectively.
  • You must submit a confirmation letter from both the employer and employee together with the application to prove that both agreed to the 14 days “special leave”.
  • The letters will stand in place of a medical certifi­cate on the illness application form (UI2.2) as the beneficiary would have self – quarantined without prior consultation with a medical practitioner. Benefits will be paid based on these letters.
  • The UIF formula of 38-60% of the UIF salary cap of R17 712 will be applied, and the employees’ period of contribution to the UIF fund as well as the previous times they claimed from the fund will also be taken into account to determine what benefit they will receive.
  • The maximum UI benefit will be paid as per the benefit structure if the employer does not pay the employee during the quarantine period. However, if the employer pays part of the salary during the quarantine period, then the UI benefit could be reduced by that amount,
  • UI19 and UI2.7 (completed by employer – indicate Code 10 on the UI19 form)
  • UI2.2 (completed in full except the medical portion)
  • The medical portion is replaced by letters from the employer and employee
  • UI2.8 bank form completed by the bank, a bank statement, or confirmation letter from the bank
  • Employer and employee confirmation letters
  • Copy of employee’s ID document
Extension of 14-day quarantine period

This applies in the event that an employee is quarantined for more
than 14 days.

Employees who were placed on 14-day quarantine and the quarantine was
extended prior to the lockdown, will be able to claim for that period
retrospectively.
The employee does not necessarily have to be sick, but a doctor
advises that they remain in self-quarantine.
You must submit a medical certificate from a medical practitioner
together with the Continuation Form UI3, at the end of the 14-day
period.
Death benefit

This benefit applies if a contributor passes away.

This benefit is available during and after lockdown.
  • 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.
  • UI19 and UI 53 (completed by the employer)
  • UI 2.5 or UI2.6
  • Death certificate ID of deceased and applicant
  • UI2.8 bank form completed by the bank, a bank statement, or confirmation letter from the bank
  • Copy of ID document
Normal Illness benefit

This benefit applies when normal sick leave is exhausted.

Employees will be able to claim during or after lockdown.
  • This benefit kicks in when an employee’s normal paid sick leave
    entitlement is exhausted, and the employee has been booked off for
    longer than 7 days by a medical practitioner.
  • UI19 and UI2.7 (completed by employer)
  • UI2.8 bank form completed by the bank, a bank statement, or confirmation letter from the bank
  • Medical certificate from a doctor
  • Amplifying medical report
  • A follow-up form
Covid-19 TERS

Employer who temporarily closes its operations, or part of its operations for a maximum of 3 months and suffer financial distress as a direct result of the Covid-19 pandemic, will qualify for a Covid-19 Temporary Relief Benefit.

Previously, the Government said that Employers had up until 30 April 2020 to apply. Given that many applicants missed this deadline, it seems that it may have been extended. Please see this statement by SAIPA.
  • Employers apply for this benefit.
  • The Scheme will pay the benefit into the employer’s account and the employer will have to pay its employees in accordance with the agreement with the UIF.
  • Employees will be paid in accordance with these guidelines issued by the Department of Labour.
  • Employees will be paid in accordance with these guidelines issued by the Department of Labour.
  • Benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations.
  • Benefits will be delinked from the UIF’s normal benefits and therefore the normal rules re the accumulation of credits will not apply.
  • In the event that an employee’s income determined in terms of the income replacement sliding scale fall below R3 500, the employee will be paid a replacement income of no less than R3 500.
See process and documents required in section 10 below.

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