Update: Temporary Employer / Employee Relief Scheme (“TERS”): The May application process

by Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Thabisa Yantolo, Candidate Attorney

On 28 May 2020 the Department of Employment and Labour (“Department“) published a statement regarding the May applications for TERS. We highlight below some of the key aspects of the statement. On 1 June 2020 the Department, in a published statement, extended the list of documents required for May submissions.

May applications

The May applications for TERS may now be submitted online.

The Unemployment Insurance Fund (“UIF“) has sought to enhance the application system and make it easier. If the information for submission in May has not changed (i.e. from the April 2020 submission) the claim will be processed immediately on confirmation by the employer. However, if information has changed, the employer will be required to capture the employees’ details on the system or attach the CSV file.

There will be an option to either have the benefit paid to the employer or directly to the employees. The UIF advise that employers elect that payment be made directly into employees’ accounts to fast track payments to employees. In this regard, it is critical that accurate bank details be provided for the employees.

Required documents for May submissions

The following documents must be attached to the May application:

• Proof of TERS payment to employees for April such as an electronic bank statement or a letter of acknowledgement of payment from the employee. This is mandatory;
• Employer bank confirmation letter or latest bank statement (which must be re-uploaded);
• Signed approval or acceptance letter received from the UIF for April payments between employer and employee; and
• Proof of refund to the UIF must be attached if applicable.  

April Applications

The system allows an employer to retrieve the application submitted for April and, where it has been rejected, make the necessary corrections on the application and re-submit it for payment. The UIF are working on finalising the outstanding claims for April 2020.

Foreign Nationals

The UIF advise that foreign nationals are being paid TERS benefits.

Should you require any formal advice regarding the above please do not hesitate to contact us.