The TERS scheme has been talked about in relation to the Covid-19 situation, but was originally introduced in December 2019. The scheme piggy backs off UIF illness and Reduced Work Time benefits and has been adapted and amende don the 26 March for Covid-19. This article and guide sets out the pre-conditions for application and the steps to be taken to claim. In practice, we have not seen a TERS scheme allowance being granted as yet.
In summary the details of the benefit are as follows
- The benefit is available to businesses who have been required to close their operations for 3 (three) months or less and suffers financial distress as a direct result of the Coronavirus.
- This benefit will only pay for the cost of salary for employees during the closure of the business.
- The salary will be capped at R17 712 per month per employee using the income replacement rate sliding scale (38% – 60%) as provided in the UI Act. (In the event that amount falls below the minimum wage, the amount will equal the minimum wage)
- The benefit will not be dependent on the employee having any credits remaining (usually one credit granted for every four days worked)
Does my company qualify?
- The company must be registered with UIF. If you are not registered with UIF and need assistance with the registration process please email [email protected] and he will advise you accordingly.
- The company must comply with the application procedure for the financial relief scheme which may include entering into a Memorandum of Agreement with the Department of Labour
- The company’s closure must be directly linked to the COVID-19 pandemic.
Further guidance is available at this link. The relevant employer and employee declaration forms for the filing are available to be downloaded from the HRTorQue website: