President Ramaphosa has declared a nation-wide lockdown for 21 days. This will come into effect from midnight on Thursday 26th March 2020 and last until Midnight on the 16th of April 2020.
The Nation-Wide Lockdown is compulsory for all organizations, businesses and only essential services are exempt
During these extraordinary circumstances, Employers are being urged to pay employees their salaries as far as it is possible for them to do so.
In the case where paying your staff is no longer possible we need to remember that we still have Labour Laws to follow to ensure we remain on the right side of the law.
Temporary Layoff:
A temporary Layoff is implemented when there is no work available. This is as a result of circumstances that are out of the Companies control.
The principle of no work, no pay will apply. Employees are encouraged to apply for UIF to assist during this time.
If the Company cannot afford to contribute to the employee’s salary/wage, Companies are asked to contact the UIF Department on behalf of the employees to assist in claiming the UIF Benefit. This claim can be completed electronically on Ufilling.
Temporary Employer/Employee Relief Scheme (TERS)
In terms of the current TERS (Temporary Employer/Employee Relief Scheme ) process, the UIF may fund the Troubled Companies directly in relation to the TERS (Temporary Employer/Employee Relief Scheme ) Allowance.
The Troubled Company will only be funded if it meets the key requirements of the UIF being:
- The Troubled Company is able to demonstrate that it has been compliant with the relevant UIF legislation,
- If the Company is not compliant, the Troubled Company undertakes to pay outstanding contributions and bring its declarations up to date within a stipulated timeframe
- The Company is able to demonstrate that it will/or has embarked upon a turnaround program which will result in job security at the expiry of the funding agreement
- The Company will be able to meet its obligations in relation to the UIF legislation.
Applications for TERS must be made to MosaB@ccma.org.za
Tax Relief
Using the tax system, SARS will provide a tax subsidy of up to R500 per month for the next four months for those private sector employees earning below R6,500 under the (ETI) Employment Tax Incentive.
Tax compliant businesses, with a turnover of less than R50 million, will be allowed to delay 20% of their pay-as-you-earn liabilities over the next four months and a portion of their provisional corporate income tax payments without penalties or interest over the next six months.
We are still waiting on SARS to issue notice to this regard
If you require any additional information please contact us