EXPLAINER | No more cash for UIF Covid-19 Ters fund

The department of employment and labour has no alternative funding measures for companies and employees who require funding under level 3 lockdown.

This comes as payouts and applications for the Temporary Employer/Employee Relief Scheme (Ters) have closed.

The grant was introduced at the start of the Covid-19 lockdown on March 26 to assist employees and companies who lost income due to the halting of most economic activities.

Employment and labour minister Thulas Nxesi said as of June 24, the scheme had paid R8.4bn to 149,120 employers on behalf of over 2 million employees.

This is what you need to know:

Relief measures for employees with pay cuts

Unemployment Insurance Fund (UIF) spokesperson Makhosonke Buthelezi told TimesLIVE that there are no alternative measures to assist companies that will remain closed under level 3 lockdown as Ters was only meant to provide relief during the hard lockdown.

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Employees will only be eligible to apply for the Unemployment Insurance Fund (UIF) should their employment contracts be terminated or if companies close down.

“The scheme was intended as a stopgap measure for three months until lockdown restrictions were eased and the economy slowly reopened, which has now occurred under advanced level 3,” he said.

Employees and salary cuts

Buthelezi said employees who get salary cuts beyond the Ters period can apply for the Reduced Work Time Benefit. This fund is for employees who get pay cuts due to reduced hours or employees who are temporarily laid off without pay.

Review of declined applications