The Department of Employment and Labour (DEL) significantly increased its budget for the Temporary Employer-Employee Relief Scheme (TERS). The original TERS budget of R400 million has been increased by approximately R2 billion and now stands at R2.4 billion.
This increase will support companies in financial distress to prevent job losses and help stabilise the economy.
What Is TERS
TERS is a government initiative in South Africa designed to assist companies that are experiencing financial distress.
The goal of TERS UIF is to help businesses prevent job losses by providing temporary financial relief for up to 12 months. This relief typically covers employees' salaries which allows businesses to focus on implementing recovery strategies and remaining operational without retrenching staff.
When companies receive TERS, employers only need to cover employees' social costs, such as provident funds and medical aid contributions.
Productivity SA, a government entity, helps these companies create turnaround strategies.
Labour Minister Nomakhosazana Meth explained that the decision to increase the TERS budget comes in response to the country's economic challenges, which have led to widespread job losses in industries like mining, manufacturing, and telecommunications.
Furthermore, the increase in the scheme's capacity aims to reduce the risk of further retrenchments and support economic stability
The Minister says thousands of jobs have been saved due to the implantation of the TERS UIF benefits.
TERS has facilitated the retention of hundreds of thousands of jobs by providing salary support to employees who might otherwise have been laid off. It continues to play a significant role in stabilising the economy during turbulent times, ensuring a quicker path to recovery by alleviating the financial burden on companies.
Applying For TERS
The application process for TERS begins with the Commission for Conciliation, Mediation, and Arbitration (CCMA), and there are no fees involved.
Employers must provide financial documentation to prove their distress, such as audited financial statements, management accounts, and business cases outlining their financial challenges and proposed solutions.
