COVID-19 TERS – Extended Relief!

COVID-19 TERS is no longer a foreign term and brought relief to many employees in the midst of unstable and difficult times, going back as far as 27 March 2020. Originally the COVID-19 TERS Fund was established only for the period 27 March 2020 to 30 June 2020 in anticipation of employees losing their income as a result of the National Lockdown that was declared on 23 March 2020.

The reality for the need of a phase-out of lockdown soon became clear and as a result the period during which employers could claim the COVID-19 TERS benefits, on behalf of their employees, has been extended numerous times. The latest extension, signed on 15 July 2021 by the Minister of Cooperative Governance and Traditional Affairs in terms of section 27 (2) of the Disaster Management Act, 2002 (Act no 57 of 2002) (hereinafter referred to as Directive), extend the period covered by this Fund to 25 July 2021.

Amendments and Qualifying Requirements

The basic requirements, in terms of the Directive of 4 September 2020, to qualify for COVID-19 TERS, remains in place, which means the employee must be registered with the UIF and the employer needs to declare and pay the UIF contributions over to the Unemployment Insurance Fund.

The more stringent qualifying requirements for COVID-19 TERS  benefits, during the period 4 September 2020 to 15 March 2021, is also still applicable and as per the latest Directive extended to 25 July 2021, with payment of the benefit still ring-fenced to employees and sectors that qualify for the COVID-19 TERS  benefit.

The extended COVID-19 TERS benefits ring-fence payments as follows:

1. Employers may claim the COVID-19 TERS benefit, regardless of the sector they are operating in, in one of the following three scenarios.

1. 1. when employers can/could not make alternative arrangements for their vulnerable workers by:

• • taking special measures to mitigate the risk of COVID-19, in accordance with the Department of Health’s Guidelines, facilitating their safe return to work; or
  • allowing them to work from home due to organisational or operational reasons.

1. 2. when employers are/were required to have their employees remain in isolation or quarantine in terms of the Occupational Health & Safety Direction or a direction issued by the Minister of Health, following a high risk contact. Employees who are affected in this regard does not need to have their sick leave exhausted prior claiming.
   3. when employers are/were unable to make use of their employees’ services, fully or partially, that is reduced working hours as a result of their compliance with the This benefit and payment thereof is subject to the employees’ UIF credits.

2. Employers who either fully operates in one of the industries listed in Annexure A or B of the Directive (see attached) or who operates outside of these industries listed, but in an industry that form part of their value chain and who:

1. 1. are not permitted to commence operations, partially or in full as a result of restrictions coupled with the adjusted levels of Lockdown in terms of the current and previous Directives;
   2. were unable to provide their services, partially or in full, as a direct result of their compliance with the Regulations and Directions of the Disaster Management Act. In this regard the Directive make specific mention to rostering; staggering of working hours; short time or the introduction of shift systems.

COVID-19 TERS Benefits in the Motor Industry

Vulnerable employees

That is employees “with known or disclosed health issues or comorbidities or any other condition that may place the employee at the higher risk of complications or death than other employees if infected with COVID-19; or an employee above the age of 60 years who is at a higher risk of complications or death if infected”.

It is all about protection and risks, personally as well as towards colleagues. MISA did an article on this very sensitive issue of being 60 years’ old and older. The ideal was that vulnerable employees work from home or that, if possible, special arrangements at the workplace are made. Should this not be possible, you are covered by TERS and your employer must claim TERS on your behalf.

Reduced Work Time Benefits

In terms of paragraph 4 of the latest Directive, employees can benefit from the COVID-19 TERS when their services were not utilised as a result of an employer’s “need to limit the number of employees at the workplace through rostering, staggering of working hours, short time, and the introduction of shift systems.”

It is important to note that in this instance payment of COVID-19 TERS for reduced hours, is subject to an employee’s UIF credits available.

COVID-19 TERS are accessible to employees who are:

• not receiving a salary;
• temporarily laid off;
• working reduced hours.

MISA’s involvement!

MISA signed a Memorandum of Agreement (MoA) with the Unemployment Insurance Fund in April 2020, to assist and ensure that our members, and as a result all employees employed at RMI establishments will receive COVID-19 TERS when applicable.  As a result, MISA can assist all employers in the Motor Industry who are members of the Retail Motor Industry Organisation (RMI), to submit their claims to the Unemployment Insurance Fund.

MISA – Just a phone call or an e-mail away!

Kindly utilise the following e-mail addresses and links for assistance during this time:

Legal/Labour-related enquiries                      Legal@ms.org.za  

Legal Reception                                                011 476 3920

MISA Benefit claim-related enquiries            Claims@misa.org.za   

Any other enquiries                                          Info@ms.org.za  

Website                                                              www.misa.org.za    

Mobile App                                                        https://onelink.to/w9a7ku 

#MISACARES #MISAONTHEMOVE

https://www.misa.org.za/ters-hope-and-challenges/