The Minister of Employment and Labour signed a Direction on the 16th of July 2021 to make it possible for the Unemployment Insurance Fund (UIF) to implement a third extension of the Covid19 TERS benefit. The system will open for applications today, Monday 19 July, with payments commencing on the 26th of July.

One major change is that payments will be made directly to the bank accounts of workers and not through their employers - but employers would still be expected to claim on their behalf.This third phase will bring relief for the following categories of workers:

• Workers who have not been able to work from 16 March 2021, due to Level 1,2 and 3 restrictions preventing gatherings of a certain number of people – such as those in the entertainment industry;
• Workers who were and/or are still impacted upon by the Level 4 restrictions which commenced on 28 June 2021; and
• Workers who have not been able to work due to the fact that they are over 60 or have co-morbidities and have not been able to work in the period as well as those who have had to isolate or go into quarantine.

The period covered by the direction is between 16 March and 25 July 2021.

The application process and the information or documents required are the same as with the previous extensions, except in respect of the processing of payments directly into the employees’ accounts. Although making payments directly into employees' bank account remains the most preferred payment mode, UIF is mindful of instances where this may be difficult. In such instances, and upon provision of sufficient proof by the employer, funds may be paid into the employer’s account at the UIF’s discretion.

Qualifying sectors for Phase 3 of the Covid TERS are identified in Annexure A and B of the Direction and include:

• Venues hosting auctions, concerts and live performances;
• Restaurants; and
• The liquor industry, hospitality and tourism as well as any industries and business establishments that form part of these value chains.

Please get in touch with us to find out more about this, and how we can assist you.

Cova Advisory