Placement: What are an employer’s statutory obligations upon commencement of employment

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment Exclusions from the BCEA

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Information sheet

EXCLUSIONS FROM THE BASIC CONDITIONS OF EMPLOYMENT ACT 75 of 1997 (BCEA)

Certain categories of employees are entirely excluded from the BCEA while other categories of employees are excluded from some sections of the Act.

Complete exclusion from the application of the Act

The entire BCEA does not apply to the following persons:

• Independent contractors (Definition of employee in section 1).
• Members of the State Security Agency (section 3(1) (a)).
• Unpaid volunteers working for an organisation serving a charitable purpose (section 3(1) (b)).

The Minister may, on the advice of the National Minimum Wage Commission and by publishing a notice, deem any category of persons to be employees for the purposes of the whole or any part of the BCEA, any other employment law (excluding the Unemployment Insurance Act) or any sectoral determination (section 83(1)).

Exclusion from the application of the entire Act except Sections 9A and Chapter 10
• People who earn less than the BCEA threshold and who are classified as “workers” – “any person who works for another and who receives, or is entitled to receive, any payment for that work whether in money or in kind” – who work for less than four hours on any day must be paid for four hours work on that day. (section 9A)

• Chapter 10 of the BCEA concerns monitoring, enforcement and legal proceedings. All reference to “employees” in this chapter should be read to include “workers”. This means that workers should also be subject to the protection offered by labour inspectors who serve to promote, monitor and enforce compliance by employers with employment law. (section 62A)

• A worker has the right to refer a dispute to the CCMA concerning the failure to pay any amount owing to that worker in terms of the BCEA, the National Minimum Wage Act 9 of 2018, a contract of employment, a sectoral determination or a collective agreement.

The Minister may, on the advice of the National Minimum Wage Commission1 and by publishing a notice, deem any category of persons to be employees for the purposes of the whole or any part of the BCEA, any other employment law (excluding the Unemployment Insurance Act) or any sectoral determination (section 83(1)).

 

Exclusion from the application of the entire Act except for Section 41, section 62A and chapters 3, 4, 5 and 6
● Persons employed on vessels at sea in respect of which the Merchant Shipping Act applies are excluded from the application of the BCEA except for section 41, section 62A and chapters 3, 4, 5 and 6 of the BCEA.

The following sections are not excluded:
● Section 41 provides for the entitlement to severance pay where an employee’s services have been terminated based on operational requirements (retrenchment).
● Section 62A: Chapter 10 of the BCEA concerns monitoring, enforcement and legal proceedings. All reference to “employees” in this chapter should be read to include “workers”. This means that workers should also be subject to the protection offered by labour inspectors who serve to promote, monitor and enforce compliance by employers with employment law.
● Chapter 3 regulates an employee’s entitlement to leave, including, but not limited to, annual leave, sick leave, maternity leave, parental leave, adoption leave, commissioning parental leave, family responsibility leave, etc.
● Chapter 4 sets out the legal requirements concerning particulars of employment and remuneration.
● Chapter 5 regulates an employee’s rights when his or her services are terminated, or when he or she wishes to resign.
● Chapter 6 sets out the law governing the prohibition of the employment of children and forced labour.
● However, in terms of a sectoral determination covering such persons, the whole or part of the BCEA may be made applicable (section 3(3)).

Exclusion from Chapter Two – Regulation of Working Time
Chapter Two (sections 6, 9, 10, 11, 12, 14, 15, 17(2) and 18(3)) regulates all aspects of working hours, including ordinary hours of work, overtime, averaging hours of work, meal intervals, rest periods, pay for work on Sundays and night work. With the exception of section 7 (regulation of working time), Chapter Two does not apply to:

● Senior managerial employees;
● Employees engaged as sales staff who travel to the premises of customers and who regulate their own hours of work;
● Employees who work less than 24 hours a month for an employer.

Sections 9, 10(1), 14(1), 15(10). 17(2) and 18(1) do not apply to work which is required to be done without delay owing to circumstances for which the employer could not reasonably have been expected to have made provision and which cannot be performed by employees during their ordinary hours of work (effectively work that needs to be done in sudden emergency situations).

Sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) do not apply to employees earning more than the statutory minimum established in terms of section 6(3). This was established at R241, 110.59 with effect from 1 March 2023.

Note that section 7 applies to all the above-mentioned employees who are otherwise excluded from the application of Chapter Two. Section 7 sets out what employers must take into account when regulating working time i.e. the requirements of occupational health and safety legislation, the health and safety of the individual employees, the Code of Good Practice on the Regulation of Working Time, and the family responsibilities of employees.

Exclusion from Chapter Three – Leave
Chapter Three does not apply to:
● An employee who works fewer than 24 hours per month for an employer,
● Unless agreed otherwise, leave granted in excess of that provided for in the BCEA.

In addition, section 27 of Chapter Three, regulating Family Responsibility leave, does not apply to the following employees:
● Employees who have worked for an employer for less than four months.
● Employees who work for less than four days a week for that employer.

Exclusion of Chapter Four – Particulars of Employment and Remuneration
Chapter Four regulates the information that an employer is required to provide to employees. The entire Chapter Four (sections 29 to 35) does not apply to:
● Employees who work less than 24 hours per month for an employer.

Section 29 requires an employer to provide to each employee at the commencement of employment various particulars of employment in writing. These particulars are set out in section 29(1) and include the full name and address of the employer, the name and occupation of the employee, description of the work, the place of work, hours of work, remuneration, overtime, deduction, leave, notice periods, etc.

See Doc 1.3E Checklist – compulsory employment details 

See Doc 1.3G CCMA Info Sheet – written particulars of employment 

The following written particulars of employment do not have to be provided in the case of employers who employ fewer than five employees-

● Section 29(1) (n) – a description of any council or sectoral determination that covers the employer’s business;
● Section 29(1) (o) – any period of employment with a previous employer that counts towards that employee’s employment;
● Section 29(1) (p) – a list of any other documents that form part of the contract of employment, indicating a place that is reasonably accessible to the employee where a copy of each may be obtained.

Although domestic workers are no longer excluded from the application of section 29, it will be unlikely that an employer will employ five or more domestic workers. Therefore, subsections (1) (n), (o) and (p) will rarely apply to domestic workers.

Exclusion from Chapter Five of the Act – Termination of Employment

Chapter Five (sections 36 to 42) deals with the termination of employment and does not apply to employees working less than 24 hours in a month for an employer (section 36).
Such employees are therefore excluded from the following rights/protections:
● Statutory notice periods of termination of employment provided in section 37.
● Payment instead of notice (section 38).
● The entitlement to temporarily remain in accommodation provided by the employer after termination of employment (section 39).
● Entitlement to payment by the employer for any paid time off or any accrued leave pay (section 40).
● Entitlement to severance pay (section 41).
● Entitlement to a certificate of service (section 42).

Exclusions from the BCEA

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment Written particulars of employment

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CCMA Information sheet

Written particulars of employment

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment SARS registration

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How to register with SARS

 

SARS registration – employer

 

An employer MUST register with SARS within 21 business days after becoming an employer.

 

Full details of how this should be done is available on SARS.gov.za

 

or by calling the SARS contact centre on 0800 007 227.

 

SARS registration – employees

 

Any person who is paid a salary or wage, is obliged to register for income tax with SARS, and obtain a tax reference number.

 

If the employee is not registered, then the employer is obliged to ensure that the employee registers for income tax.

 

The employee can go to SARS to register themselves – this cannot be done online – or via a third party – the employee must personally visit the SARS office.

 

  • Certified copy of ID
  • Proof of address
  • 3 Months’ bank statements, original and stamped by the bank

 

The employer can use e-Filing to register an employee for tax.

Register employee for tax

The easiest process is for the employer to require the prospective employee to register for tax and provide the employer with a tax reference number before confirming employment.

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment Compulsory employment details

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What employment details must an employer communicate to an employee when they start working?

 

The following details must be provided to the employee in writing in terms of the Basic Conditions of Employment Act 75 of 1997 (BCEA).  This is in the interests of both employers and employees. This is a legal requirement in terms of Section 29 of the BCEA.

 

The written particulars can be in a form of a letter of employment or a formal contract of employment. It is advisable for the document to be signed by both parties to avoid future misunderstandings and disputes.  Section 29 of the BCEA states as follows:

  • The full name and address of the employer;
  • A brief description of the duties for which the employee is employed;
  • The date on which employment began;
  • The employee’s ordinary hours of work and days of work;
  • The employee’s wage or the rate and method of calculating wages;
  • The rate of pay for overtime work, Sunday work and Public Holidays;
  • Any other cash payments that the employee is entitled to and the value of the payment in kind;
  • any deductions to be made from the employee’s remuneration;
  • When wages will be paid, and how they will be paid – cash, bank account, etc.
  • How much leave the employee is entitled to;
  • The period of notice required should employment be terminated or if employment is for a specified period, the date when employment is to terminate;
  • A list of any other documents that form part of the contract of employment, indicating a place that is reasonably accessible to the employee where a copy of each may be obtained.

 

Note, if any of these details change, the changes must also be given to the employee in writing.

 

If the employee is not able to understand the written particulars, the employer must ensure that they are explained to the worker in a language and manner in which s/he understands.

Guideline for permanent contract of employment

Guideline for fixed-term contract of employment

The above-mentioned provisions do not apply to an employee who works less than 24 hours a month for an employer or to an employer who employs fewer than five employees.

 

Why does the BCEA state that an employer must supply a worker with these written particulars when starting to work?

 

Written particulars of employment serve to provide certainty to both employers and employees as to the conditions that govern the employment relationship.  This reduces the possibility for confusion and disputes that may arise when there is no written record of what has been agreed to.

 

An inspector from the Department of Labour may inspect the written particulars of employment. An employer must keep such records for a period of three years after the termination of employment. A labour inspector has the power, without warrant or notice, to enter any workplace (not including a private household) at any reasonable time in order to monitor and enforce compliance with the BCEA. The inspector may question a person on any employment law matter and require disclosure of information, as well as inspect certain documents or records.

 

If there is an agreement to change the written particulars, the law further requires that the document must be amended and the employee must be given a copy.

 

If an employee is not able to understand the written particulars, the employer must ensure that it is explained in a language and a manner that the employee understands.

Written particulars of employment

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment COIDA registration form (Part 2)

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COIDA registration form (Part 2)

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment COIDA registration form

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Guideline

How to register a business with the Compensation Fund for Occupational Injuries and Diseases.

Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA) refers –

“The purpose of this Act is to provide for compensation to workers who are disabled by occupational injuries or diseases, sustained during the course of their employment, or for death resulting from such injuries or diseases.”

The employer is required to register with the Compensation Commissioner.

Register with the Compensation Commissioner

  • This must be done within 7 days of the first employee being hired
  • To register, read the guidelines on how to complete the form and complete the W.As.2 form

Complete the W.As.2 form

  • There is also a copy of the form below
  • For registration guidelines click the link below

How to register a business with the commissioner of Compensation for Occupational Injuries and Diseases

COIDA registration form (Part 2)

COIDA registration form

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment How to register a business with the commissioner of Compensation for Occupational Injuries and Diseases

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How to register a business with the commissioner of Compensation for Occupational Injuries and Diseases

 

Registration guidelines: Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA) Form WA.s 2

 

All employers who employ one or more workers in connection with their business or farming activities, are required to register with the Compensation Fund.

Employers are required to file a separate registration for each separate branch of a business, although employers may make an arrangement for combined registration of these entities.

The following WAS 2 registration guidelines have been provided by the Department of Labour:

  • All applicable items must be completed on both pages of the WA.s 2. This document MUST be signed and dated.
  • A copy of the CK1/2 OR CM1 + CM29 i.r.o. Close Corporations and Companies, Trust documents or N.P.O certificates MUST be attached.
  • A copy of ID-document(s) MUST be attached in respect of sole proprietors/owners/partners.

 

Without the above-mentioned documents attached, the registration cannot be processed.

 

FRONT PAGE:

 

Mark with “X” in the relevant space to indicate whether the employer is a sole proprietor (farmers included), close corporation, company, partnership, public -/local authority, organisation/association or a trust, etc.

 

PART 1 – PARTICULARS OF BUSINESS / FARMING / ORGANISATION / TRUST

  1. Give the date on which the first employee was employed. It is compulsory for an employer to register within 7 days of the date the first employee was employed. Employers cannot register with this Office if no employees are employed yet.
  2. Give the physical address/street address/ name(s) of the farms, postal code and district.
  3. Give the physical address/street address/name(s) of farms, postal code and district 

Give contact details

 

PART 2 – PARTICULARS OF OWNER / PARTNERS / TRUSTEES / OF A CLOSE CORPORATION / COMPANY / TRUST

  1. Give the name(s) of owner(s), partner(s), and trustees.  Attach a list if necessary.
    1. Give ID-number(s) of owner(s), partner(s), trustee(s)
      N.B. Copies of ID’s MUST be attached
  2. Give the name of company or close corporation with DTI as well as the company or close corporation number 

N.B. A copy of the CK1/2, CM1 + CM29, trust or NPO-certificate MUST be attached.

 

PART 3 – PARTICULARS OF THE NATURE OR TYPE OF BUSINESS-/FARMING OPERATIONS, ACTIVITIES OR ORGANISATION

  1. Give a detailed description of nature of the business activities or farming operations OR the goods manufactured or sold OR services rendered.

A detailed description is of utmost importance to enable this Office to determine the rate.

N.B. the description “General operations in all aspects” or “General trade in all aspects” is not accepted. Refer to the Classification of Industries, W.As. 150T, which can be obtained from this Office or on the website as a guideline.

A detailed description could be:

“Building construction” or “Civil engineering construction” and not only “Construction”

“Clothing dealer” and not only “Dealer” or “Retailers”

Therefore, the description as indicated on the CK1/2 or CM1 + CM29 e.g. “Trading in all aspects” is not acceptable. This Office needs to know the type of goods that is sold or manufactured or the type of construction that is done.

In case of labour hire / broker, indicate the type of industry to which the employees will be hired out, the number of employees in each industry and what their duties would be.

  1. Describe the following IF applicable
    1. Materials used in the manufacturing of goods: e.g. leather, steel, wood etc.
    2. Nature, extent and type of construction / erection undertaken: e.g. “Building construction” or “Road Construction” and not only “Construction”
    3. In case of farming indicate the nature.   Mark with “X” next to the type of farming and in case of mixed farming indicates the %.
    4. Do you use any tractors and/or power driven saws: Mark with “X” where applicable?

 

PART 4 – PARTICULARS OF RESPONSIBLE PERSON / DIRECTOR / MEMBER OR PARTNER OF BUSINESS

  1. This part must be completed.
    Attach a list with the names, ID-numbers and addresses if necessary.
  2. Give the registration numbers with the Compensation Fund or Unemployment Insurance Fund in the relevant space if already registered.
  3. Complete if applicable

 

PART 5          

  1. This part should only be completed if the employee(s) has/have been employed during the current assessment year, (1 March the current year to 28 February next year) or any in between period within that assessment year.If the first employee was employed prior to this period, this part should not be completed. This Office will mail the Return of Earnings document(s) (WA.s 8) for the relevant years to the employer to be completed and returned to this Office.
    1. Write the average number of employees expected to be employed per month during the current assessment year. In other words March this year to February next year or any in between period.
  2. If the employees estimated earnings might be less than this maximum amount per person per year, the amount estimated must be declared. Those employees who might earn in excess of this maximum amount per year, earnings up to that maximum amount must be declared per person per year as estimated earnings. A Provisional assessment will be raised on this estimated amount.  The reason for the maximum earnings is that compensation for injuries on duty is calculated and paid up to that maximum amount.
    1. Estimate the earnings expected to be paid to all the employees expected to be employed during this current assessment year (March this year to February next year or any in between period).
    2. Estimate the cash value of food and lodging for the same period if applicable
    3. Estimate the cash value of other in-kind benefits if applicable
    4. Estimate the earnings of working directors of a Co. or working members of a CC up to the same maximum earnings indicated in item 5.2 on the Registration form.
  3. Add up the estimated totals from item 5.2.1 to 5.2.4 and write it in the available space. Indicate for what period the estimation was done by writing the dates in the available space.

 

PART 6

  1. Complete item if applicable.
  2. Complete bank details for the purpose of electronic deposits to your bank account if applicable

 

DECLARATION BY EMPLOYER OR AUTHORISED PERSON

 

This part MUST be completed, signed and dated.

 

WHO IS AN EMPLOYER?

All persons who employ one or more employees, in connection with their business/farming activities, organisation/ association/trust are “employers” in terms of the Act.

 

WHO IS AN EMPLOYEE?

Any person, irrespective of age, who is employed by an employer for the purpose of his business / farming activities.   This also includes temporary and casual workers when employed for the purpose of the business / farming.

 

“EMPLOYEE” is defined by this Act as a person who has entered into, or works under a contract of service or apprenticeship or learner ship with an employer, whether the contract is expressed or implied, oral or in writing, and whether remuneration is calculated by time or work done, or is in cash or in kind and includes –

  • Casual / temporary employees employed for the purpose of the employers’ business/farming/organisation’s activities.
  • Working director of a Company or member of a Close Corporation/Body Corporate, who has entered into a contract of service, or of apprenticeship or learner ship, in so far that the employee acts within the scope of his/her employment in terms of such contract. (Excluding shareholders or “silent partners” who are only paid dividends or sharing profits).

 

NB. A sole owner or partners in a business / farming operation are not regarded as “employees” as contemplated by the Act and their earnings should, therefore, not be included.

  • A person provided by a labour broker against payment to a client for the rendering of a service or the performance of work and for which service or work such person is paid by the labour broker, is an employee of the labour broker. The earnings of such persons should be included in the client’s Return of Earnings, W.As. 8, document.

 

“EARNINGS” are all payments made regularly, before any deductions, whether in money or in kind, to employees.

 

The following list is not exhaustive but is intended only to highlight remuneration items for which there might be some doubt as to their inclusion or exclusion.

 

Included in the gross earnings before any deductions are the following:

  • Overtime of a regular nature, (not intermittent or irregular overtime).
  • Bonuses of any kind, including incentive bonuses and annual bonuses.
  • Commission, even though the amount may vary from month to month.
  • The cash value of food and quarters supplied to employees as part of a remuneration package.
  • Cash value of fringe benefits such as a company car, free accommodation or accommodation at a reduced rate, etc.
  • Travel and other allowances paid regularly, as part of the package.
  • Where the employee is remunerated in accordance with a package of benefits, all items forming part of the package, other than employer contributions such as medical aid contributions.
  • Earnings / Drawings paid to working Directors of a Company or Members of a Close Corporation.

 

EXCLUDED ARE THE FOLLOWING:

  • Payments of a reimbursive nature;
  • Overtime worked occasionally;
  • Payments for specific non-recurring tasks which do not form part of an employee’s normal duties;
  • Ex gratia payments;
  • Intangible fringe benefits such as the taxable portion of medical aid/pension contributions by the employer, etc.;
  • Payments to cover special expenses such as subsistence and travelling costs, lunch and costs for business meetings;
  • Travel and other allowances paid occasionally; and
  • Profit sharing of Directors and Members.

 

LETTER FOR TENDER PURPOSES

  • Employers may apply for a letter for “tender purposes” before employee has been employed and before registration. Fax number 012: 323 5023 or 012: 357 1823.
  • Employers may apply for “Proof of registration” for “tender purposes” as soon as a registration number has been allocated. Fax number 012: 323 5023 or 012: 357 1823.
  • A post card is automatically posted to all registered employers which is proof of registration with this Office.

 

LETTER OF GOOD STANDING can be obtained once the employer has complied with the requirements of the Act, inter alia:

  • Submitting the latest return of earnings;
  • Assessment has been paid or instalments have been arranged. If arrangements made for instalments, attach copy of receipt (Proof of Payment);
  • To arrange for instalments: Fax 012: 357 1783  Tel  012: 3199 347;
  • Application should be made in good time, 5 working days before it is required, preferably on a letterhead, in writing;
  • Please quote the registration number, as well as telephone and fax numbers with dialling code;
  • Applications on behalf of the employer by Consultants or Agents should be in writing and accompanied by a Power of Attorney;
  • Any tampering with the contents of these Letters is a serious offence.

 

APPLICATION FOR LETTER OF GOOD STANDING CAN BE FAXED 5 WORKING DAYS IN ADVANCE TO FAX NO:  012: 323 0262 or 012: 323 5433.

 

WEBSITE ADDRESS

The Compensation for Occupational Injuries and Diseases Act, 1993 and Amendments are available on the website at http//www.labour.gov.za

COIDA Registration Form

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment How to register a business for UIF

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How to register a business for UIF

 

Registration of a business and new employees for unemployment insurance contributions is regulated by the Acts listed below:

  • The Unemployment Insurance Contributions Act 4 of 2002 (UICA)

The Unemployment Insurance Contributions Act 4 of 2002 (UICA)

  • The Unemployment Insurance Act  63 of 2001 (UIA)

The Unemployment Insurance Act 63 of 2001 (UIA)

The statutory duty to pay unemployment insurance applies to all employers, and all employees except:

  • Where an employee works less than 24 hours in a month for an employer;
  • Employees under a contract of employment contemplated in section 18 of the Skills Development Act 97 of 1998;
  • Foreigners who entered the Republic to carry out a contract of service, apprenticeship or learnership and who will be leaving SA at the end of their contract, work permit, visa etc.; and
  • Certain government and municipal employees.

 

Every employer and every employee, except for those listed above, must contribute on a monthly basis to the Unemployment Insurance Fund (UIF).

 

  • The employer must apply for registration with UIF. Such registration may be undertaken via the electronic filing provision of “u-Filing”. The electronic link is as follows: https://www.ufiling.co.za
  • The employer and the employee must each contribute on a monthly basis 1% of the gross remuneration payable to the employee. The total monthly contribution is thus 2% of the employee’s gross monthly remuneration.
  • This is paid to the UIF and can be done online.
  • There is a maximum remuneration level that is determined from time to time – this is currently R14 872-00 i.e. the maximum UIF contribution is 2% of R14 872-08 (GN 783 in GG35715 as of 26 September 2012). This means that employees earning over this limit still contribute, but their contributions and those of their employer are calculated on the maximum earnings ceiling.
  • The employer must deduct the employee’s contribution and pay it, together with the employer’s contribution, to the Commissioner of the UIF or SARS on or before the 7th day of each month, or on the last business day before the 7th should it fall on a Saturday, Sunday or public holiday,
  • The employer must at the same time submit a UIF return – this can also be done on u-Filing at the address provided above.
  • The employer must advise the UIF of any terminations or new appointments, by the 7th of each month (on the monthly UIF return).

 

How to register as an employer for UIF

This can be done online via u-Filing

Go to the u-Filing website here

U-Filing also allows for the following:

  • Monthly returns and payments
  • Uploading employee documents
  • Downloading relevant UIF forms
  • Employer and employee guidelines / ‘frequently asked questions’

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How to register a business for UIF

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Home Recruiting & AppointingWhat are an employer’s statutory obligations upon commencement of employment What benefits can employees claim in terms of the Unemployment Insurance Act 63 of 2001(UI Act)

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What benefits can employees claim in terms of the Unemployment Insurance Act 63 of 2001(UI Act)?

 

1.     Unemployment benefits

 

Section 16 of the UI Act states that unemployment benefits are payable to an unemployed contributor who has been unemployed for more than fourteen days if the reason for unemployment is

  • The termination of the contributor’s contract of employment by the employer or the end of his/her fixed-term contract;
  • The dismissal of the contributor;
  • Insolvency;
  • In the case of a domestic worker, the termination of the contributor’s contract of employment by the death of the employer.

 

NB: Where the contributor resigns from his/her employment, s/he is not entitled to claim unemployment benefits, unless the contributor has succeeded in a claim of constructive dismissal at either the CCMA or a bargaining council.

 

Furthermore, the contributor is required to comply with the following:

  • Apply within six months of the termination of the contract of his/her services;
  • Must register as a work-seeker with a labour centre; and
  • Be capable of and available to work.

What are an employer’s legal obligations to an employee once the employment relationship ends?

2. Maternity benefits

 

In terms of section 25 of the UI Act, the application for maternity benefits must be made in the prescribed form at least eight weeks before childbirth.

 

The maternity benefit may not be more than the remuneration the contributor would have received had the contributor not been on maternity leave.

 

The maternity benefit is paid for a maximum period of 17.32 weeks. Where the contributor has a miscarriage during the third trimester or bears a still-born child, the maximum maternity benefit payable is six weeks after the miscarriage or stillbirth.

 

3. Illness benefits

 

These benefits are payable when a contributor has not been able to work due to ill health for a period exceeding fourteen days. The period of illness is calculated from the date that the contributor stops working due to ill health and an application for these benefits must be made within six months of this date. The illness benefit may not be more than the remuneration the contributor would have received from the employer had the contributor been at work.

 

In terms of the Unemployment Insurance Regulations, an employer is required to complete form UI 2.7 which serves as a statement in respect of payment made to the contributor who is still employed, but is unable to work due to illness, maternity or adoption of a child.

 

4. Adoption benefits

 

Adoption benefits are available to only one contributor of the adopting parties and only if the child has been legally adopted in terms of the Child Care Act 74 of 1983, the adopted child is below the age of two and the period that the contributor was not working was spent caring for the child.

 

The application must be made within six months after the date that a competent court has granted an order for adoption in terms of the Child Care Act.

 

The adoption benefit may not be more than the remuneration the contributor would have received from the employer had the contributor been at work.

 

5. Dependant’s benefits

 

In terms of section 30 of the UI Act, the surviving spouse or a life partner of a deceased contributor may apply, within six months of the death of the contributor, for the contributor’s benefits.

 

Any dependent child of a deceased contributor may apply for the dependent’s benefits if there is no surviving spouse or life partner or the surviving spouse or life partner has not made application for the benefits within six months of the contributor’s death.

 

The dependant’s benefit may not be more than the remuneration the contributor would have received from the employer had the contributor been alive.

 

Documents required:

  • Contributor’s record card
  • A certificate from the last employer in the form of and including the information called for in Annexure UF 128
  • Dependant’s ID document
  • Deceased’s ID document
  • Form UI-19 completed by the employer
  • Marriage certificate or evidence of a customary marriage
  • Affidavit – for life partners
  • Birth certificates – for children
  • Proof of schooling – for children between 21 and 25
  • Death certificate of the deceased contributor

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What benefits can employees claim in terms of the Unemployment Insurance Act 63 of 2001(UI Act)

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