Employees

How to make UIF & CF “Covid-19” Related Claims

Covid-19 claims related to UIF and the Compensation Fund. Read on, where applicable. This could help employers and employees during this unprecedented period, which should be temporary. Thank you to SAICA Tech Talk for this comprehensive information. 

Unemployment Insurance Fund

UIF indicated that they compensate affected workers through its existing benefits:

  • Reduced Work Time
  • Illness
  • Death
  1. UIF –Reduced work time benefit

Applies -Shut down for period or implement reduced time:

UIF Act

S12 (1B) A contributor employed in any sector who loses his or her income due to reduced working time, despite still being employed, is entitled to benefits if the contributor’s total income falls below the benefit level that the contributor would have received if he or she had become wholly unemployed, subject to that contributor having enough credits.

Claim = UIF benefit payable less amount Employer pays employee

Forms required:

UI19 & UI2.7 (employer)

UI2.1b

UI2.8 (bank)

Letter from employer

Copy of ID

 

  1. UIF –Illness benefit

UIF Act

S20. Right to illness benefits

(1) Subject to section 14, a contributor is entitled to the illness benefits contemplated in this Part for any period of illness if:

(a) the contributor is unable to perform work on account of illness;

(b) the contributor fulfils any prescribed requirements in respect of any specified illness; and

(c) application is made for illness benefits in accordance with the prescribed requirements and the provisions of this Part.

(2) A contributor is not entitled to illness benefits:

(a) if the period of illness is less than 7 days; and

(b) for any period during which the contributor:

(i) is entitled to unemployment benefits in terms of Part Bof this Chapter or adoption benefits in terms of Part Eof this Chapter; or

(ii)without just reason, refuses or fails to undergo medical treatment or to carry out the instructions of a medical practitioner, chiropractor or homeopath.

-Employee quarantined for 14 days

-Confirmation letter from employer & employee –both agreed to 14 days “special leave”

-Letter in place of medical certificate

-Quarantined > 14 days medical certificate & Continuation Form UI3

Forms required:

UI19 & UI2.7 (employer)

UI2.2 (portion completed by doctor)

UI2.8 (bank)

Copy of ID

 

  1. UIF –Death benefits

S30 -Right to dependent benefits

-Benefits paid to beneficiaries of deceased (spouse, life partner, children & nominated persons)

Forms required:

UI19 & UI 53 (employer)

UI 2.5 or UI2.6

Death certificate

UI2.8 (bank)

ID of deceased and applicant

UIF –Claim Conditions

  • Employer and employees must be registered
  • Must pay contributions = 1% employee & 1% employer to claim
  • Maximum earnings ceiling is R14872 per month or R178 464 annually.
  • For employees who earn more than this amount, the contribution is calculated using the maximum earnings ceiling amount. Therefore the maximum contribution which can be deducted, for employees who earn more than R14 872 per month, is R148.72 per month.
  • Excess amounts shouldn’t be included as remuneration or as a leviable amount for the purposes of UIF contributions.
  • Accrues at a rate of one day’s benefit for every completed four days of employment as a contributor subject to a maximum accrual of 365 days benefit in the four year period immediately preceding the day after the date of ending of the period of employment in terms of

UIF -Document repository

Submit forms via:

  • Illness-www.ufiling.co.za
  • illness, reduced work time, death benefit

-Email to UIF processing centre or

-Fax to UIF processing centre

-Visit the nearest branch

6 day turnaround promise by UIF

  

Compensation Fund

Compensation for occupationally acquired –COVID-19

Effective 20 March 2020

CompEasy system or Mutual Association Claims –use Code U07.1

Can be contracted as employee –in workplace or as part of travel

Occupations at risk

Very high risk –healthcare workers working with COVID-19 patients

High risk –healthcare delivery & support staff

Medium exposure –jobs that require contact with people who may be infected

Low exposure – don’t require contact

Compensation Fund Benefits

-Total temporary disablement

-Suspected cases –self-quarantine (employer responsible)

-Confirmed cases –if Fund accept liability, will pay for 30 days

-Medical aid

-Death benefit

Forms required:

-Employers report –W.CL.1

-Notice of occupational disease and claim for compensation –W.CL.14

-Exposure and medical questionnaire

-First medical report –W.CL.22 indicating U07.1 as code

-Exposure history –W.CL 110

-Medical report

-Progress medical report –W.CL.26

-Final medical report –W.CL.26

-Affidavit

Compensation Fund

On-line claims

Compensation Fund –CompEasy (www.labour.gov.za)

Rand Mutual Assurance –CompCare (www.randmutual.co.za)

Federated Employers Mutual –IMS (httos://roe.fem.co.za)

Manual claims

Compensation Fund -covid19claims@labour.gov.za

Rand Mutual Assurance –contactcentre@randmutual.co.za

Federated Employers Mutual –FEM-Registry@fema.co.za

 

Small business

SMME as per National Small Enterprise Act

Funding in the form of a loan not a grant

   1.   SMME funding

http://www.smmesa.gov.za/

Must be compliant

Prime less 5%, Prime +10% if abuse

  1. SMME relief finance scheme

1 April 2020 6 months

Not applicable to self-employed people and hawkers

Fund working capital

Prime less 5%, Prime +10% if abuse

  1. Self-employed and hawkers

Owned by SA citizens and managed and run by SA citizens

Bulk buying

Working with municipality –licensed

Reference: SAICA Tech Talk Covid-19 | 25 March 2020

Disclaimer:

This article is for informational purposes only and should not be relied upon by any other person for any purpose whatsoever, as legislation and rules are subject to change. Due care is taken to ensure that the article written is correct; however, having regard to the circumstances AstraFin will have no responsibility to you or to any other person for any claim of any nature whatsoever arising out of or relating to this article, and you indemnify AstraFin and agree to hold it harmless against any such claim.