Contact

Extended COVID-19 TERS endorsed by NEDLAC

Back to top

Extended COVID-19 TERS endorsed by NEDLAC

In a recent CDH Employment Law Alert, we discussed the announcement made during the State of the Nation Address (SONA) regarding the extension of the COVID-19 TERS relief scheme into 2021. Since SONA, The National Economic Development and Labour Council (NEDLAC) partners have been working out the details of the extension with the Unemployment Insurance Fund (UIF). We summarise below the proposals made by the UIF which have been endorsed by NEDLAC and highlight to employers what we believe they should be considering in light of the 2020 learnings in respect of COVID-19 TERS applications.

22 Feb 2021 2 min read Employment Law Alert Article

At a glance

  • The COVID-19 TERS relief scheme is proposed to be extended in 2021 for sectors affected by lockdown regulations, employees with comorbidities, and employees over 60 years old who cannot be accommodated at work.
  • The UIF has proposed income replacement for employees who had to self-isolate or quarantine.
  • Employers in relevant sectors should identify eligible employees and ensure proper audit trails are in place for inspection requests by the Department of Employment and Labour.

The UIF has proposed that the Covid-19 TERS relief scheme be extended to:

  1. sectors still affected by lockdown regulations;
  2. employees with comorbidities; and
  3. employees over 60 years old who cannot be reasonably accommodated at work.

Also of significance is that the UIF has put forward proposals on how employees who have had to self-isolate or quarantine can now claim income replacement.

The UIF have confirmed that sectors:

  1. ranging from tourism to hospitality; and
  2. involved in the manufacturing, sale, dispensing, distribution and transportation of liquor would be covered.

The stated intention at NEDLAC is an effort to ensure that all businesses that are still affected by COVID-19 restrictions are covered by the extension. It is proposed that there will be two payment iterations. The first will be for the period between 16 October to 31 December 2020 and the second from 1 January to 15 March 2021. It is intended that the UIF start processing applications for the first period (16 October 2020 to 31 December 2020) by the first week of March 2021. The UIF will announce once the system is open for applications and will also provide easy aid guides and frequently asked questions to assist applicants with the application processes.

Employers in the relevant sectors should start to identify which of their employees may be eligible to benefit from the extension so that once the application process commences, the necessary applications can be made. Once the relevant Directives are issued by the Minister of Employment and Labour employers should determine whether their businesses fall within the identified sectors. 

In 2020, we wrote and commented extensively in the media on COVID-19 TERS fraud. There were numerous follow ups in 2020 (many of which continue) on audits of the relief received in 2020. It is important that employers who apply for the extended COVID-19 TERS benefits ensure that there is a proper audit trail in place which can be made available to the Department of Employment and Labour where there is a request for an inspection. We have assisted various businesses in complying with inspection requests since 2020.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2023 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com.

You might also be interested in

9 Mar 2023

by Gerhard Badenhorst

Securities lending arrangements: The VAT implications

The South African Revenue Service (SARS) published Binding General Ruling 62 (BGR 62) on 12 December 2022, in which it sets out its interpretation and application of the Value-Added Tax Act 89 of 1991 (VAT Act) for the lender in terms of a securities lending arrangement. BGR 62 comes into effect on 1 April 2023. The value added tax (VAT) implications of a securities lending fee as set out in BGR 62 are contrary to the VAT implications as previously set out in Practice Note 5/1999, which will be withdrawn from 1 April 2023. It is, however, arguable as to whether the interpretation and application of the VAT Act as set out in BGR 62 are correct.

Tax & Exchange Control

6 min read

16 Feb 2023

by Jerome Brink, Puleng Mothabeng and Nicholas Carroll

Are you “affected” by the release of SARS’ Interpretation Note 127?

How a taxpayer is financed is an important consideration when calculating their taxable income.

Tax & Exchange Control

10 min read

8 Mar 2023

by Lucinde Rhoodie, Muwanwa Ramanyimi and Claudia Grobler

So close, yet so far: The effect of liquidation on judicially attached property

So, you have your court order, writ of execution and have judicially attached the movable assets of your debtor, and you are only one step away from finally recovering what you are owed; what could possibly go wrong? We have all been warned never to ask that question, because, like in the movies, that is when it all seems to start going wrong. It often happens that default judgment is obtained; a writ of execution is issued and the sheriff judicially attaches the debtor’s movable assets and draws up the inventory. However, before the sheriff can remove the assets for a sale in execution, another creditor brings a liquidation application against the same debtor and a provisional liquidation order is granted.

Business Rescue, Restructuring & Insolvency

5 min read

7 Feb 2023

by Claudette Dutilleux and Gabby Schafer

It’s not always greener on the other (jurisdictional) side

Enforcing a judgment in South Africa that has been obtained in a foreign jurisdiction is not always as simple as a judgment creditor may expect. A litigant ought to consider the enforceability of a judgment obtained in a foreign court before instituting proceedings in that jurisdiction, in order to prevent obtaining a judgment that is essentially worthless.

Dispute Resolution

3 min read

22 Jun 2022

by Vincent Manko and Jackwell Feris

Investor-state dispute settlement in the SADC region

There is no doubt that trade and investment are the two fundamental pillars of international economic relations. The Southern African Development Community (SADC) has put a number of policies and structures in place that aim to deepen integration in the region. One such measure is the Protocol on Finance and Investment (Protocol) which was signed on 18 August 2006 and came into effect on 16 April 2010.

Dispute Resolution

6 min read

9 Dec 2022

by Imraan Mahomed, Nadeem Mahomed, Kgodisho Phashe and Thato Makoaba

The first Labour Court judgment written in Sesotho – What is the future?

In the introduction to his judgment in Rahube v Rahube and Others 2019 (1) BCLR 125 (CC), Goliath AJ stated the following: “Batho botlhe ba tsetswe ba gololosegile le go lekalekana ka seriti le ditshwanelo. All human beings are born free and equal in dignity and rights. Whether in Setswana or in English, this extract from article one of the Universal Declaration of Human Rights is powerful because until 24 years ago it was not true for the majority of South Africans.”

Employment Law

5 min read

This website uses cookies to enhance the browsing experience. For more information, please see our Cookie Policy.

Accept Decline