Increase in non-payment of UIF claims likely

The nationwide shutdown meant many industries were not able to work for a number of months, which was why government offered relief in the form of the Temporary Employer/Employee Relief Scheme (Ters).

However, there have been many instances where monies were not paid over to the applicants, as is the case of Caroline Munengani and three others v Bob Cuts Hair Salon and others in case number J507/20 (LC).

Many more cases about nonpayment of claims are likely to be lodged against the Unemployment Insurance Fund.

● Facts of the case:

The labour court heard an urgent application from four employees of Bob Cuts.

Their case was that, as the employer had not paid over UIF contributions on their behalf, they were unable to claim Covid-19 Ters relief for lost income during the lockdown.

The court dismissed the application as it found the employees had not approached it “with the necessary haste” because the unpaid salaries dated back to February 2020.

The court found that urgent relief would not be granted in circumstances in which substantive relief could be obtained in due course.

The case should have relied on the fact that the employer was legally obliged to have applied for Covid-19 Ters payments. In addition, even unregistered or noncontributing employees are entitled to the benefits under the Covid-19 Ters scheme.

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