Hens coming home to roost – historic non-compliance

Hens coming home to roost – historic non-compliance

Business, Coronavirus Reliefs, Human Resources

A key part of our business is compliance. As one would expect, compliance has not always been a crucial element of some employers’ strategies; and over the years we have lost clients to cheaper alternatives where compliance is less of a focus.

In the last month we have seen so many examples of employers coming to us asking for help with TERS scheme applications where they are either not registered for UIF or haven’t submitted a monthly declaration file for years.

While registration may be simple, the task of getting them compliant so they can claim on behalf of their employees becomes an expensive and time-consuming process. At a time when they can’t afford it.

The net result, they cannot claim for TERS relief and their employees lose out and cannot understand why…

Adding insult to injury some of these non-compliant employers cannot understand why they shouldn’t be allowed to claim even though over time they haven’t made one cent contribution to the UIF Fund…

On the plus side we expect UIF registrations to rocket with several small employers having to do it to get reliefs and, in the process, falling into the Department of Labour’s net for the future – assuming they can survive this period of course. We hope so for their sake.