Amended TERS Benefit

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COVID-19 Temporary Employee/Employer Relief Scheme (TERS) now allows employees to claim benefits despite not being registered or been contributing to the fund.

A welcomed amendment has been enacted by Labour Minister Thulas Nxesi as of the 25th of May 2020. The amendment includes the definition of ‘worker’ in terms of clause 1.1.9 of the TERS Directive. The term “worker” is divided into two; a “contributor” which is defined as a natural person who is or was employed, to whom the act in terms of section 3 applies and who can prove they have made contributions in terms of the UI Contributions Act and an “employee” as defined by the UI Act who should have received benefits under this Directive but for circumstances beyond that employee’s control, namely that the employer failed to;

  • Register the employer

  • Register the employee

  • Pay the contributions to the fund

It should, however, be noted that employees who are excluded from the UI Act are excluded from the TERS benefit. These include employees employed for less than 24 hours a month with a particular employer. Further, the Act does not apply to members of parliament, cabinet ministers, deputy ministers, members of provincial executive councils, members of provincial legislatures and municipal councillors.

 

Download the amendment to the directive here.

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