The Unemployment Insurance Fund (UIF) is calling on employers to declare their employees to the fund and pay the relevant contributions. The failure to declare workers and pay contributions is not only against the law, but also means that employees who require relief may not be able to claim it.
The UIF provides relief to employees who are unable to work due to maternity leave, parental leave, adoption leave, illness, loss of employment and to dependents of a deceased UIF contributor.
UIF Deputy Director of Compliance, Siphamandla Gumede explained that the failure of employers to pay UIF contributions and declare workers can have lasting consequences. It could also lead to the employer being charged penalties and interest.
If employers are found to be non-compliant, they will be issued with an undertaking or compliance order. The employer will then have 14 days to make an effort to comply before the matter is referred to the labour court for prosecution.
Gumede said the majority of normal benefit claims such as Unemployment and Maternity benefits get delayed due to a lack of up-to-date declarations and contributions by employers.
The employer is required to submit UIF contributions on behalf of the worker by the seventh day of every month. The amount contributed monthly is equal to 2% of the remuneration received by the employee. In this case, 1% is paid by the employer and 1% is paid by the employee.
Gumede explained that declarations are significant as they inform the UIF who the employees are, when they started working and how much they are earning on a monthly basis. This information is updated regularly on the UIF’s system and is used to calculate the benefits employees receive when they apply for relief.
UIF Deputy Director: Risk, Anti-Corruption and Integrity Management, Bernice Matlhako warned that the fund has a zero-tolerance approach in dealing with corruption. They called on anyone with information of UIF officials soliciting bribes to report it to the fund.
“We urge employers to report any official who requests a bribe to law enforcement agencies and the Departmental Fraud Hotline on 086 002 2194 or the Fund on 080 060 1148 or the nearest Labour Centre Manager,” said Mathako.
The UIF has been holding workshops to educate and engage with employers about the UIF's laws, services, processes and compliance with legislation. The next workshop will take place on Friday, 18 November 2022 at the Cape Town International Convention Centre.
