After the announcement of the National lock-down by our president on Monday, 23 March 2020, our firm immediately started researching on the various grants, aid funds and benefits available for all businesses in South Africa.
Through our dedicated team, in conjunction with Cawood Attorneys Inc and our other associates, we are now able to present businesses with a unique opportunity to start benefiting through the various avenues opening daily.
While you as business owner need to focus on the challenges with regards to reopening your doors once the lock-down is uplifted, we will focus on submitting applications for a wide variety of benefits available to you, which include, but is not limited to the following:
- COVID-19 Temporary Employee/Employer Relief Scheme (C19 TERS) – This is the most exciting relief fund at the moment as it benefits all companies and employees to a certain extent.
Our offering is to charge a once off administration and submission fee for applying on your behalf for all benefits referred to above. Our fee for these services is R15 000 all inclusive and cannot be charged or even partially charged towards any employee of the company for the benefit they stand to receive. The fee is charged to the company and applies to all relief funds that are open and yet to open where we will apply provided that your company fits the criteria . This will ensure that your business has successfully applied for all relief funds available and we will continue submitting applications on your behalf as and when new relief funds open.
At the moment our focus is in view of the declaration of the National Disaster in terms of Regulation 10(8) in terms of which the Minister of Employment and Labour has issued a directive called COVID-19 Temporary Employee/Employer Relief Scheme (C19 TERS).
During the period of lock-down companies will have to shut down and employees laid off temporarily. This means that employees are compelled to take leave which is not out of choice.
Employers are encouraged to pay employees, but where this is not economically possible the Minister and his Department created a special benefit under the Unemployment Insurance Fund as per the Directive COVID-19 Temporary Employee/Employer Relief Scheme.
COVID-19 Employee/Employer Temporary Relief Scheme (C19 TERS):
- Should an employer as a direct result of COVID-19 pandemic close its operations for a 3 (three) months or lesser period and suffer financial distress the company shall qualify for a COVID-19 Temporary Relief Benefit.
- The benefit shall be de-linked from the UIF’s normal benefits and therefore the normal rule that for every 4(four) days worked the employee accumulates a one-day credit and the maximum credit days payable is 365 for every 4 9(four) years will not apply.
- The benefits will only pay for the cost of salary for the employees during the temporary closure of the business operations.
- The salary benefits will be capped to a maximum amount of R17 712-00 per month, per employee and an employee will be paid in terms of the income replacement rate sliding scale (38%-60%) as provided in the UI Act.
- Should an income determined in terms of the income replacement sliding scale fall below the minimum wage of the sector concerned, the employee will be paid a replacement income equal to minimum wage or the sector concerned.
- Qualifying employees will receive a benefit calculated in terms of sections 12 and 13 of the UI Act, provided that an employee shall receive a benefit of no less than sector specific minimum wage.
- For the company to qualify for the temporary financial relief scheme it must satisfy the following requirements:
- The company must be registered with the UIF
- The company’s closure must be directly linked to the COVID-19 Pandemic.
Our offering further extends after we have successfully submitted your applications with the relevant schemes, funds exc. We will deal with all further queries from the different funds on your behalf and ensure that same is dealt with diligently and effectively to increase your chance for receiving benefit. Any additional services that you require will be charged on an hourly rate of R650 and will be dealt with as a separate instruction that requires your pre-approval. This rate is therefore not an addition cost for submission of applications referred to above and is only applicable to other services that you might require during this time.
With regards to the COVID-19 Temporary Employee/Employer Relief Scheme (C19 TERS) that require a written agreement with UIF and that all benefits be dealt with in a separate bank account with its own set of books and accounting records, we have worked out a no benefit no fee proposal for your business. We will charge your business 15% monthly on the total benefit received from this fund in exchange for meeting the stringent requirements set by UIF for the management of this account. We will open the separate bank account on your behalf which we will manage, in conjunction with Cawood Attorneys Inc. We will manage all payments to employees from this account and ensure that all accounting records are up to date and complies with the audit requirement of UIF. If no benefit is received no additional fee is charged. The employee will receive the full benefit paid into this account.