Covid-19: Minister Nxesi urges companies to pay staff UIF funds

Covid-19: Minister Nxesi urges companies to pay staff UIF funds

- Some companies have allegedly been pocketing the unemployment insurance funds paid out to workers instead of distributing them to staff

- Labour Minister Thulas Nxesi has called on employers to ensure Covid-19 funds find their way to employees

- This comes after nearly R9 billion in Covid-19 relief funds were paid out by the scheme

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Employment and Labour Minister Thulas Nxesi has urged employers to do the right thing and ensure that the Unemployment Insurance Funds for the Covid-19 Temporary Employer/Employee Relief Scheme are paid over the workers.

Nxesi revealed that the fund had been receiving numerous complaints from workers that the money had been withheld by their company.

"This follows a number of complaints received from workers who called in alleging that their employers have not paid them the money the UIF has disbursed as part of Covid-19 TERS, which is meant to provide temporary relief for workers who are at home or to at least meet some of their salary demands."

READ ALSO: Applying for UIF income relief during the 21-day national lockdown

The fund, in response to the health crisis, has paid nearly R9 billion over to companies explained the minister.

“To date we have paid close to R9-billion in Covid-19 relief. This is the amount that we are paying for relief for workers and we appeal to the employers to ensure that it is paid to the workers without any further delay."

Nxesi explained that in an effort to fast-track payments to workers, employers were provided with a breakdown of how much each staff member should receive.

“We took a decision to break down even the payments, a decision that saw our systems almost overwhelmed with information as we did not want workers’ funds to be delayed even further. We once again appeal to employers with outstanding information regarding claims to ensure that they forward these as soon as possible."

To date the fund has paid:

  • R 8 836 010 295.56 to 114 661 employers for 1 525 308 workers
  • R152 031 601.04 paid through 845 bargaining councils affecting 56 456 workers
  • R1 295 078 468.38 in ordinary benefits reported that the fund had formed part of the government's response to the coronavirus pandemic.

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