Destroyed, Affected or Looted Workplaces: Temporary Financial Relief Scheme 2021

Updated: Aug 18, 2021


Destroyed, Affected or Looted Workplaces: Temporary Financial Relief Scheme 2021

A Temporary Relief Scheme ("Scheme") aimed at giving financial relief to vulnerable workers, provide the payment of temporary financial relief to vulnerable workers and sets out the application process for this temporary financial relief regulations has been established.


Workers who are not being paid remuneration, in full or in part, due to the closure of a workplace as a result of the unrest are entitled to an income replacement calculated at the rate on the sliding scale (38%-60%) based on the employee's remuneration.


The remuneration calculated for the relief is capped at a maximum of R17 712 per month, and if the income replacement falls below R3 500, the worker must be paid a replacement income equal to that amount. An employer must apply for temporary financial relief for and on behalf of its affected employees and must satisfy the requirements under the Scheme.


The Regulation comes into operation on 10 August 2021 and shall be reviewed every two weeks by the Minister. A Temporary Relief Scheme ("Scheme") aimed at giving financial relief to vulnerable workers, provide the payment of temporary financial relief to vulnerable workers and sets out the application process for this temporary financial relief regulations has been established.


The Regulation comes into operation on 10 August 2021 and shall be reviewed every two weeks by the Minister.


What relief is the employee entitled to?

  • An employee is entitled to income replacement on a sliding scale between 38% and 60% based on the employee’s remuneration. The remuneration used to calculate the relief is capped at the maximum amount of R17,712 per month. The employee is entitled to a minimum of R 3500.

  • It should be noted that an employee may only receive this relief if the total of the relief together with any additional payments from relief or salary is not more than the remuneration which the employee would ordinarily have received for working during that period.

  • The temporary financial relief scheme is not linked to normal unemployment insurance benefits.

  • Payment of temporary financial relief may only be done by direct payment into the worker's bank account.


How to apply:


In an effort to avoid in-person employee applications at departmental offices, an employer who needed to close its business as a result of the unrest must apply for relief under the scheme on behalf of affected employees/workers.


The following requirements must be met by the applying employer:

  1. it must register and be registered with the unemployment insurance fund;

  2. the closure must be directly linked to destruction, damage or looting of its workplace;

  3. it must confirm in writing or electronically that the terms of the scheme as well as its procedure are accepted;

  4. it must provide details of destruction, damage or looting of, or closure of the workplace and submit documentary proof of same in the form of a report to the South African Police Service, proof that a case has been opened, a case number, and if insured, proof of submission and acknowledgement of receipt of the insurance claim and any other information of relevance.


The employer can apply by reporting the closure of the workplace using the application procedure issued by the unemployment insurance fund.

 

For more information on the above topic, please contact the LabourNet Helpdesk at 


0861 LABNET (0861 522638).


Not yet a LabourNet client, but would like to know more about our service and products?


Email us: support@labournet.com

www.labournet.com

LabourNet