TERS – Hope and Challenges!

Five months’ ago the Temporary Employee/Employer Relief Scheme (TERS) was established and is regulated in terms of Regulation 4(10), issued 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).

Originally TERS 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.

TERS Extended

Finally on the 17th of July 2020 the period that is covered by the TERS benefit is extended to 15 August 2020. Even though the new Direction was signed on the 11^th of August 2020 only, it is retrospective and deemed to have commenced on 27 June 2020, covering the period 1 July 2020 until 15 August 2020.

In layman’s terms, all claims that will be submitted from this point forward for this specific period will be subject to the amended requirements.

Amendments and Qualifying Requirements

The basic requirements to qualify for TERS remains in place, that is the employee must be registered with the UIF and the employee’s income was reduced as a direct result of the National Lockdown and restrictions in the different levels of lockdown.

Amendments to TERS for the period 1 July 2020 to 15 August 2020 brought about more stringent qualifying requirements for the TERS benefits and ring-fenced payment only to employees whose employers:

• as a result of their core function, was not allowed to trade/work during Level 3;
• could not make alternative arrangements for their vulnerable workers;
• was unable to make use of their services, partially or in full, as a result of their economic, technological, structural or similar need, as a direct result of the employers’ compliance with the Regulations and Directions of the Disaster Management Act.

You qualify for TERS in this extended period if you are a:

Vulnerable employee

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 Services and Salaries

COVID -19 Temporary Employee/Employer Relief Scheme (C19 TERS) Direction 2020, section 2.3.3. provides that employees can benefit from 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.”

TERS is accessible to employees who are:

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

This is important as a number of the bigger groups in the Retail Motor Industry did embark on nationwide consultations and negotiations to reduce employees’ salaries for a specific pre-determined period. Your employer can therefor apply for TERS on your behalf to “top-up” your salary.

Calculation of TERS – Extended Period

An explanatory memorandum was released to show how the UIF will calculate the benefits as per the Directive for the period 1 July 2020 until 15 August 2020.

• On a sliding scale starting at 38% of the maximum threshold of R17,712.00 (or R6,730.56) to 60% of an employee’s salary.
• If the employee’s benefit determined in terms of the income replacement sliding scale falls below the minimum wage of R3,500.00, the employee will be paid a benefit equal to that minimum wage.
• In essence, the most an employee will receive is the amount of R6,730.56 for those employees earning equal to or above the maximum threshold of R17,712.00. Employees earning less than this maximum threshold will earn, on a sliding scale, an amount down to the minimum being the national minimum wage of R3,500.00.

MISA’s involvement!

MISA have 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 an RMI establishment will receive TERS when applicable.  As a result, MISA can assist all employers in the Automotive Aftermarket 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:

Employer UIF/TERS Submissions              UIFClaim@ms.org.za

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

*  Legal Reception                                      0114763920

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

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