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Minister of Employment and Labour issues directive to COVID-19 Temporary Employee/Employer Relief Scheme

On 25 March 2020, the South African Minister of Employment and Labour issued the COVID-19 Temporary Employee/Employer Relief Scheme (“TERS”) directive, including various amendments thereto.

The TERS directive provides for a relief benefit to be claimed where, due to COVID-19, employers are unable to pay their employees or where employees are required to take compulsory leave.

To qualify for the relief benefit, various conditions must be met and employers must consider the following:

  • What requirements must be in order for the company/employees to qualify for the relief benefit?
  • How does one apply for the relief benefit?
  • By which date must one apply for the relief benefit?
  • For what period of time will the relief benefit be offered?
  • How is the relief benefit calculated, and what is the maximum amount that an employee qualifies for?
  • What audit trail is required to support your application?
  • What are the other tax and long-term considerations to take into account?

The TERS benefit is de-linked from the other Unemployment Insurance Fund (UIF) benefits, and other processes. Applications will, however, be subjected to the fund’s normal verification and validation processes. For regular updates, employers, employees and stakeholders are urged to visit the visit the Department of Employment and Labour's website.


For the COVID-19 TERS related inqueries, please contact

Thrisha Soni
Partner: Global Employer Services, Deloitte Africa Tax & Legal
tsoni@deloitte.co.za

Maggie Ntombela
Associate Director: Global Employer Services, Deloitte Africa Tax & Legal
mntombela@deloitte.co.za

 

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