Need to know tips: Temporary Employee Relief Scheme (TERS)

  1. An employer may claim from TERS if it had to temporarily close either wholly or partially for a period of 3 months or less. The purpose of TERS is to avoid employees losing income as a result of the national lockdown.

     

  2. TERS benefits are calculated according a specific set of rules. The maximum TERS benefit per employee is R6 700 and the minimum R3 500. The UIF uses an automated calculation that incorporates an income replacement sliding scale when calculating the benefit due to each employee.

     

  3. Employers may claim TERS benefits in respect of employees who have taken annual leave during the national lockdown. The employer may retain these amounts, provided that it credits the employee with leave days proportionate to the value of the benefit.

     

  4. Employers are urged to pay employees the equivalent of their TERS benefits in advance should these not have been received by the employer on their payment date. The employer can then retain those amounts when the TERS payment is received from the UIF.

     

  5. Employers are advised to submit all TERS claims by 30 April 2020, as it is believed that the window for applications will close on the aforesaid date;

     

  6. The UIF introduced an online application process for TERS which is available at: www.uifecc.labour.gov.za /covid19.  

 

Should you require advice regarding TERS or the payment of salaries during the nationwide lockdown, or require any labour or employment related assistance, contact Donald Fischer from our Litigation and Dispute Resolution team: donaldf@vdt.co.za.

April 27, 2020
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