Covid Business Support: TERS

Written by Pierre Dixon on 3 April, 2020
The king of the calculator is one of the co-founders of real time. His superpowers: helping his valued clients improve, and adding value to their businesses.

On 26 March 2020, the Minister of Employment and Labour gazetted the Covid-19 temporary employee/employer relief scheme.

White face mask with a map of the world lying on a green background

White face mask with a map of the world lying on a green background (Photo by domin_domin)

The Salient Points of the Scheme

Should an employer, as a direct result of the Covid-19 pandemic, close its operations for a 3 (three) months or lesser period and suffer financial distress, the company shall qualify for a Covid-19 Temporary Relief Benefit.

  • The benefit shall be delinked from the UIF's normal benefits and therefore the normal rule that for every 4 (four) days worked, the employee accumulates a one day credit and the maximum credit days payable is 365 for every 4 (four) years will not apply.

  • The benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations.

  • The salary benefits will be capped to a maximum amount of R17,712 per month, per employee and an employee will be paid in terms of the income replacement rate sliding scale (38% to 60%) as provided in the UI Act.

  • Should an employee's income determined in terms of the income replacement sliding scale fall below the minimum wage of the sector concerned, the employee will be paid a replacement income equal to minimum wage of the sector concerned.

  • Qualifying employees will receive a benefit calculated in terms of sections 12 and 13 of the UI Act, provided that an employee shall receive a benefit of no less than sector specific minimum wage.

  • For the company to qualify for the temporary financial relief scheme, it must satisfy the following:

    1. The company must be registered with the UIF;
    2. The company must comply with the application procedure for the financial relief scheme; and 
    3. The company's closure must be directly linked to the Covid-19 pandemic.

Employers wishing to apply should send a mail to Covid19ters@labour.gov.za. An automatic response outlining the application process should be received. 

We sent a test mail to Covid19ters@labour.gov.za, but did not receive an automatic reply. It therefore seems that the system is not fully operational yet. We will advise as soon as a response is received.

Please find the Government Gazette Directive and below the URL an article from Business Insider providing more information:

https://www.businessinsider.co.za/government-pays-workers-during-lockdown-2020-3

Should you require assistance or have any questions regarding the above please don’t hesitate to contact us.

We will continue to provide information as soon as it becomes available. Please be on the look at for our emails under the following heading:  UPDATE: Covid-19 BUSINESS SUPPORT

Keep Calm. Keep Focused. Stay Safe!

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