Labour department approves UIF relief plan for looted businesses

The Department of Employment and Labour has approved the temporary relief plan from the UIF to help looted businesses in Gauteng and KwaZulu-Natal.

The plan received approval through the Government Gazette on 10 August.

The maximum payment amount will not exceed R6 700 and will not be lower than R3 500 per month.

The UIF established the plan in the wake of the civil unrest that took place in the two provinces in July 2021.

According to the department, the unrest impacted more than 75 000 workers.

How the UIF temporary relief plan works

To access the relief, business owners must be registered with the UIF. Non-registered ones must apply on behalf of their employees through a specified process. This will allow them to make bulk applications.

To qualify for the relief, businesses must have closed directly due to the destruction, damage, or looting of their premises.

To apply, they must supply documentary proof of the closure and an open case number. If the business is insured, it must also provide proof of submission and acknowledgment of receipt of the insurance claim.

The UIF will transfer relief payments directly into business employees’ bank accounts. In the case of payments sent to employers’ bank accounts instead, the UIF Commissioner will specify the conditions under which those will be made.

Relief amounts will be based on the income replacement rate calculated on a sliding scale of 38% to 60% based on employees’ remuneration.

The maximum payment amount will not exceed R6 700 and will not be lower than R3 500 per month.

The relief plan is not linked to the UIF’s normal benefits. This means that employees will not accumulate a one-day credit for every four days worked.

This, the department said, will let employees receive financial support whose workplaces are still in the process of rebuilding or reopening.

Going forward, the UIF will announce the date from which businesses can submit claims to the plan.

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Featured image: Homemade Media via Unsplash