The Temporary Employer/Employee Relief Scheme (TERS) was introduced during the Covid-19 pandemic to supplement some of the lost income of employees due to the impact of the Covid-19 related lockdowns.
To date, the Unemployment Insurance Fund (UIF) distributed R61 billion in TERS to affected employers and their employees. However, the UIF found that employers claimed benefits but did not distribute the money to the employees it was intended for.
The Department of Employment and Labour will now turn their attention to employers who did not distribute TERS funds to employees. This will form part of the UIF’s “Follow The Money” project.
UIF Commissioner Teboho Maruping revealed that the project has already recovered over R900 million. This was made possible by the six audit companies hired by the UIF to audit companies who received TERS benefits.
These companies are currently visiting employers to conduct internal verification checks on the declaration of employees.
“When we visit you for the “Follow The Money Project", we are checking the information you declared with us, the number of employees and figures that an employer has declared with the Fund is what we will look at," explained Maruping.
The commissioner explained that employers are obliged to register and declare their workers to the UIF, as well as pay monthly contributions. Failing to register and declare employees contravenes Section 56 of the Unemployment Insurance Act (UIA) and Chapter 2 of the Unemployment Insurance Contributions Act (UICA) which compels employers to register and declare their workers to the UIF.
These monthly contributions fund the benefits people receive from the UIF. Maruping added that in cases where monies were claimed from the UIF but did not reach the intended employees, 50% will be immediately recouped by auditing companies.
