Stéfan Swart Attorneys

Extended COVID-19 TERS benefits

On 12 August 2020 a new directive was promulgated into law that has extended the COVID-19 TERS benefits until 15 August 2020.

For the period 01 July 2020 until 15 August 2020, only certain categories of employees may claim benefits tightening the net on what type of claims will be authorised by UIF. In the past, all employees may have been able to claim the TERS benefits on behalf of their employees but now its restricted to employers that: –

  • are not yet permitted to commence operations consequence to the Regulations imposed by the Disaster Management Act, 2002;
  • are unable to implement social distancing measures for vulnerable employees (i.e. employees over the age of 60 years; employees with severe health issues making them high risk category employees that may easily become infected with COVID-19);
  • are unable to utilize the services of its full staff compliment due to its internal operational predicaments.  

The extended albeit amended Directives provide a different method to calculate the TERS benefits payable to employees. The “new” calculation makes provision that: –

  • An employee will receive a benefit as calculated in terms of section 13(1) of the UIF Act;
  • Should the benefit which is calculated in terms of this new directive plus any other remuneration payable to the employee fall below R 3,500.00, the benefit will be increased to ensure that the employee received R 3,500.00;
  • The employee may only receive the TERS benefits in terms of this Directive if that total of the benefits together with any remuneration paid by an employer for any service rendered by the employee, is not more than the remuneration which the employee would ordinarily have received.

Applications for these “new” benefits (over the period 01 July 2020 to 15 August 2020) will open for submission on Monday 17 August 2020.

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