temporary layoff south africa

If employees cannot attend work because they are infected with CoVID-19, are they entitled to receive pay? Commentdocument.getElementById("comment").setAttribute( "id", "ab126232308930eb565b6613b6f52ae0" );document.getElementById("cff85cafdf").setAttribute( "id", "comment" ); Labourwise is an online advisory service for employers in South Africa. Temporary lay-off: Circumstances beyond the employer’s control, such as the COVID-19 pandemic, can add to create a challenging environment where the employer has to make difficult decisions in order to continue business operations sustainably. On 18 January 2018 the President assented to several amendments to the Unemployment Insurance Act of 2001, including the insertion of the following provision to section 12 of the Act: "(1B) A contributor employed in any sector who loses his or her income due to reduced working time, despite being employed, is entitled to benefits if the contributor’s total income falls below the benefit level that the contributor would have received if he or she had become wholly unemployed, subject to that contributor having enough credits.”. The Department of Labour has published new regulations which outline South Africa’s new Covid-19 Temporary Employee/Employer Relief Scheme (TERS). Contact Form. Resulting in our company being put under pressure. For assistance with short time or temporary lay-off agreements employers may contact info@labourwise.co.za. The employee will however be entitled to claim benefits from the Unemployment Insurance Fund (UIF) after the employer assisted the employee to complete the necessary documentation. They are resorting to emergency measures such as short time & temporary lay-off. Issue the notice to consult and have the employees sign to confirm receipt thereof. Home » News » Temporary lay-off: how and when? Labourwise (Pty) Ltd © Jan Truter for www.labourwise.co.za. Disclaimer: The material above is provided for general information purposes only and does not constitute legal or professional advice. A Covid-19 Temporary Employer/Employee relief scheme has since been introduced to help employers to pay their employees while they are on temporary lay-off. According to Justice Moore, it no longer matters whether a temporary layoff is allowed for in an employment contract. If TERS is claimed, are you as an Employer allowed to pay your employees an additional amount on top of the amount received from UIF, Good day. www.labourwise.co.za If it becomes apparent that the circumstances remain unchanged, the employer may need to consider retrenchments. You first need to make sure that you have chosen the right option, UIF for “reduced working time” versus UIF Covid-19TERS benefits. Under the Regulation, employees whose hours of work are reduced or eliminated, or whose wages are reduced, are no longer considered to be on a temporary layoff under sections 56 (what constitutes termination) and 63 (what constitutes severance) of the ESA. Should an employer as a direct result of the COVID-19 pandemic close its operations, or part of its operations, for a period of three months or less, the affected employees of such an employer shall qualify for the COVID-19 TERS benefit. It only temporarily suspends it. For this reason, we see layoffs as a last resort during hard times. The employer can then consider temporary lay-offs where employees are temporarily retrenched due to operational requirements. When such unforeseen circumstances lead to a standstill of business and consequential loss of income, the employer still has a responsibility towards employees. In the absence of such provisions, employers may not impose these measures unilaterally – it will have to be agreed upon. 2.1.1. Neither the author nor the publisher accepts responsibility for any loss or damage that may arise from reliance on information contained in this article. Some businesses are under severe strain as a consequence of the severe measures implemented due to the COVID-19 having been declared a national disaster. Labour law sets strict requirements that employers must comply with – and that is exactly what the LWO does: we assist employers to comply with labour law and to protect their businesses and their rights as employers. Requiring employees to agree to short time or a temporary layoffs … A Covid-19 Temporary Employer/Employee relief scheme has since been introduced to help employers to pay their employees while they are on temporary lay-off. As it is only temporary, there is no need for the employer to take drastic action to liquidate the business. Although many of our articles and other useful information are for free, we offer a professional subscription service for the business owner, HR specialist and manager at a minimal monthly cost. I am afraid of going to CCMa and need to know how to lay off my staff correctly. The employer should draft a notice to consult with the employees setting out the points of discussion, enabling the employees to prepare for the meeting. Keep an attendance register and minutes of the meeting. If there is a trade union involved in the workplace, ensure that the notice to consult is also sent to them. I suggest you read the article and links carefully. good day REDUCED WORK TIME BENEFIT (Short Time/Temporary Lay-off) The applicable Forms are: UI19 and UI2.7 (completed by Employer) UI2.1 (application form) UI2.8 (bank form completed by the bank) A letter from the Employer confirming Reduced Work Time or Temporary Lay-off due to the Coronavirus; Copy of ID document The employee is not dismissed and is still employed. Membership on the Domestic worker package, LWO joins hands with Moulder Skills Development, LWO Focus Newsletter – November & December 2020. a client fails to make payment for work done; in the event of power failure bringing production to a halt; weather circumstances negatively affecting operations; or any other instance which is beyond the control of the employer, including the COVID-19 pandemic, etc. Employers may consider lay-offs in the event that they wish to suspend the functions of an employee for a period of time. This is done under a variety of circumstances for several reasons that may include: 1. We were already hard pressed as a company as strike action in the area of our main branch caused many people to leave the area resulting in us losing alot of learners. Layoff Letter Due to COVID-19 (Coronavirus): When we were forced to close due to COVID19, I had no finance to pay my staff as I wait for payments to come in at the month end. Another new option is temporary layoffs, which means that staff will receive UIF payments - but stay on as employees. Such payments are however granted to employees at the discretion of the employer. A temporary lay-off of employees due to operational circumstances. Without notice my company called everyone in today and gave us a temporary layoff letter. The Main Agreement of the National Bargaining Council of the Electrical Industry (NBCEI) defines the lay-off procedure as “the temporary suspension, without pay, of employment for a minimum of five consecutive shifts due to a reduction in the volume of work in an establishment or section of an establishment, or due to any other economic reason or any other contingency or circumstances … There are many forms that this could take including a full temporary layoff (where identified employees don’t work at all for an agreed defined period), a rotational layoff (work only every second week and accept no, or reduced levels, of remuneration in the weeks that they aren’t working), short time (for example requiring employees to only work and be paid a shorter day or perhaps a three/four day work … UIF to process COVID-19 TERS benefit to assist employers and workers during Coronavirus lockdown. PS. If no agreement is reached, employers may have to follow the retrenchment process as a last resort. There is no guarantee that payment will occur within that time frame, though. Two obvious alternatives to retrenchment is for employees to work short time or to be laid off temporarily without pay. A fairly recent amendment to the Unemployment Insurance Act of 2001 is likely to bring much needed relief to affected employees. Become a member today and make your life as an employer easier. This is precisely the type of situation which the Covid-19TERS relief is intended for. If you are preparing to lay employees off, be sure to have an attorney review your layoff plans, as well as your letter, to avoid legal risks. Temporary Layoff Letter: In some circumstances, employers may want to reduce their workforce temporarily. If you are ever laid off, it is important to remember that the job itself has been suspended or … A lay-off is a temporary suspension of the work of an employee. F: 086 510 6417 COVID-19 & UIF - SHORT TIME & TEMPORARY LAY-OFF, https://www.labourwise.co.za/labour-news-teazer/guide-to-uif-and-other-covid-19-options-updated-30-march-2020, https://www.labourwise.co.za/downloads/topical-temporary-download, BOMBSHELL FOR RESTAURANTS AND RELATED ESTABLISHMENTS, RETRENCHMENT PAYOUTS IN THE COVID-19 CONTEXT [Abbreviated version], RETRENCHMENT PAYOUTS IN THE COVID-19 CONTEXT [Full article version]. The employee will however be entitled to claim benefits from the Unemployment Insurance Fund (UIF) after the employer assisted the employee to complete the necessary documentation. E: info@labourwise.co.za Our Temporary Layoff policy outlines our rules for temporarily suspending our employees. South Africa Disaster Management Act, 2002. Although it does not seem that the amendments were actually promulgated, the relevant forms are available from the Department of Labour and such claims should be processed. +27 (0)82 979 0684 +27 (0)83 453 8483; info@cptlabourconsultants.co.za Any employee can be temporarily laid off as long as relevant provisions of the Employment Standards Act, 2000 (ESA) are complied with. Give the employees the opportunity to provide alternatives to the temporary lay-offs. CLICK HERE for access to these forms and other resources. If the claim for UIF benefits is successful, the leave may be reversed. PS. Your information is safe and secure and will not be shared with any third party companies. The recent outbreak of the COVID-19 (coronavirus) has forced many companies to shut down offices temporarily while employees are in self-quarantine. The time period must be reasonable and fair. Layoffs may be temporary or permanent. This policy applies to all our permanent full-time or part-time employees. The layoff depends on an agreement between an employer & a trade union on behalf of workers,or ,in the absence of a trade union, between an employer & individual workers; We recognize that large-scale layoffs, both temporary and permanent, affect morale and job satisfaction. NOTE: Due to the rapid developments surrounding Covid-19, the information provided in this article may be outdated. Normally, if you are laid off or put on short-time hours, you can claim redundancy from your employer after 4 weeks or more, or 6 weeks in the last 13 weeks. There is no requirement under South African employment legislation for employees to receive these payments. This includes linking or attaching documents that can help ease the person's mind while also informing them of how these events work. Labour on Temporary Employer-Employee Relief Scheme during Coronavirus COVID-19 lockdown. As such the BCEA recognises certain forms of leave, which may, depending on the circumstances, be applicable to the employees’ absence as a result of COVID-19. - All rights reserved, T: 010 900 4743 It would seem that this caters for precisely the type of situation faced by employees who work short time or are temporarily laid off. For more stories, go to Business Insider's home page. How can this be achieved? As of the 1st January 2015, some major changes were made to the temporary employment laws in South Africa. Contact Info. So when is a layoff temporary? With the current COVID 19 situation many parents are not willing to pay due to the fact that we will be closed for more than a month. Read about membership benefits here. Examples of unforeseen circumstances beyond the employer’s control include: A temporary lay-off hold definite advantages for both the employer and employee. In Article Archive, Article Archive - Home, Article Archive - Teazer, Labour News, Labour News Teazer by Jan Truter18 March 202019 Comments. extended unpaid leave or temporary lay-off If one or more employees are to be selected for dismissal from a number of employees, the LRA requires that the criteria for their selection must be either agreed with the consulting parties or, if no criteria have been agreed, be fair and objective criteria. 11. Ask Your Own South Africa Law Question Customer reply replied 8 years ago I was under the impression tha hourly paid workers can be laid off if it can be proven that the division or section of that company has been unprofitable for a while (12 months in this case). In South Africa the annual entitlement to annual leave is a minimum of 15 working days per annum. All employees in South Africa as a condition of their employment are entitled to leave provisions as set out in the Basic Conditions of Employment Act (BCEA). Employers regularly suspend employees from duty. A Temporary Layoff Letter: The Middle. Once you are sure you have made the right choice, the answers would be apparent. “As part of the application for the benefit, a letter from the employer confirming the company shut down or employee’s 'temporary lay-off' due to the Corona Virus must be included. When we reached the end of March my employees were insisting on a full months pay even though we only worked till the 18th March. Discuss the points as listed on the notice during the meeting. I am a preschool owner and we were closed from the 18th March 2020. Good evening ,just before the lockdown my husband manager address them about how they were gonna use their annual leave to cover lost of income during the month of April,today two weeks within lockdown he got and sms from his manager that he has been temporarily laid off and that the company will claim from the the uif for his April salary,so pls advise as to what to do. If a company claimed the TERS fund for the 3 months for his employees can they after the TERS amply for uif if the workers are still paid reduce hours/ rates or are still on short time, When C19TERS is no longer available (as from 1 July) employees can claim normal UIF (reduced work time) benefits – see our article at https://www.labourwise.co.za/labour-news-teazer/guide-to-uif-and-other-covid-19-options-updated-30-march-2020, My Employee has just issued us with a further notice for an extended 3 months lay off starting July to August , please advise if we are eligible to collect uif and what forms documents will be required . Click here for more information. Report back on the employees’ suggestions. My business barely survive from month to month. I am facing a challenge in that I won’t be able to pay my staff at the end of April and I won’t have many kids meaning my expenses won’t be paid and my company will be in deep trouble. What process must be followed when wanting to reduce salaries for reasons other than the lockdown. No, temporary lay-off does not interrupt your service. For assistance with short time or temporary lay-off agreements employers may contact info@labourwise.co.za. South Africa: Short Time Work As An Alternative To Retrenchment During The #COVID-19 Pandemic ... Short time work is imposed as a temporary measure for a temporary period where there is only limited amount of work for an Employee to do for their Employer. 27 Mar 2020. “A training layoff is a temporary suspension of work of a worker or group of workers that is used for training purposes. Thank you, Yes, you can claim normal UIF (reduced work time) benefits – the forms can be found at https://www.labourwise.co.za/downloads/topical-temporary-download, Does temporary laid off means a break in your service. In South Africa, the term ‘retrenchment’ means the same as ‘layoff’. LWO was established in 1990 to provide employers in the broader South African business community with labour law services and other related services in the field of labour law. Address : Millennium Business Park, Edison Way, Century City, Cape Town. During a temporary lay-off period, the employee will not report for duty and will not be paid remuneration for this period. The law on claiming redundancy from your employer if you have been temporarily laid off, or temporarily put on short-time work will change during the COVID-19 emergency period. The DHA is custodian, protector and verifier of the identity and status of citizens and other persons resident in South Africa. Temporary lay-offs cannot be implemented indefinitely. I suggest that your husband waits to see what happens. Companies with 100 or more employees will want to read up on the Warn Act before laying off. It is sometimes negotiated and agreed to at the start of the employment relationship and the terms are embodied in the employment contract. It is important to understand that the employee has not been dismissed. I need to submit documents for UIF temp lay off due to COVID 19 for my employees who do I address this to is there an email address for the docs to get sent to I have the UI19 & UI2.7, UI 2.1 & UI 2.8 forms aswell as letter confirming company shutdown due to COVID 19. Temporary lay-off (2) For the purpose of clause (1) (c), a temporary layoff is, (a) a lay-off of not more than 13 weeks in any period of 20 consecutive weeks; (b) a lay-off of more than 13 weeks in any period of 20 consecutive weeks, if the lay-off is less than 35 weeks in … You want to offer a way for the employee to learn more about the layoff and all of the details that surround them. This makes it possible for people to realize their rights and access benefits and opportunities in both the public and private domains. Thank you for helping me. During a temporary lay-off period, the employee will not report for duty and will not be paid remuneration for this period. It should also inform employees if it is only a temporary layoff. A reduction of remuneration needs to be negotiated and agreed. It is important to understand that the employee has not been dismissed. When they are permanent, the meaning is the same as ‘redundancy’. document.write(new Date().getFullYear()); If no such clause exists in the employment contract, an agreement between the employer and employee must be in place prior to implementing the temporary lay-offs. Once the claim has been submitted in accordance with the requirements, the intention is for payment to occur within 30 days thereafter. I scrounged up and managed to pay them for most of the month but told them that I will try to claim the balance from UIF as I have no finance left and the company and me in my personal capacity is heavily in debt and won’t qualify for any more loans etc. We strongly advise employers to be proactive and include a clause in the employment contract where the employee agrees to this, so that in a case of unforeseen circumstances beyond the employer’s control, the employer is in the position to act. The middle of a temporary layoff letter is pretty simple. Some Bargaining Council Agreements make provision for short time and/or temporary lay-off, and some employment contracts have built-in provisions in this regard. South Africa: TERS and the National Disaster Benefit: some much-needed clarity - The CCMA published a statement on its website, in which it provided some much-needed clarity on the options available to employees, employers and CCMA users in the midst of the Covid-19 pandemic. Scope. we have been notified that we will not receive salary during the lock-down,forms have been filled in and sent back how long do we wait for the benefit to be paid out from the uif. CAPE TOWN – There is a great deal of confusion around the new Covid-19 temporary employee relief scheme (C19 TERS) and who can apply for the benefit. For the latest developments see our most recent article. Covid-19 Temporary Relief Scheme, 2020 ... 1.1.7 " temporary lay-off" means a reduction in work following a temporary closure of business operations, whether total or partial, due to Covid -19 pandemic for the period of the National Disaster. That could be a good sign. The verb is ‘to lay off’. From that date, any person employed under a temporary employment contract for a period of longer than three months without a justifiable reason (see below) would be ‘deemed’ to be an ‘indefinite period employee’ (ie permanent employee) of the employer, and be protected against unfair dismissal in ter… Employers can require employees to take annual leave, if they have a company shutdown, for example. Employer-Employee relief scheme during Coronavirus lockdown followed when wanting to reduce salaries for reasons other than the lockdown »... Notice during the meeting News » temporary lay-off period, the information provided in this article to Justice Moore it! Will not report for duty and will not be paid remuneration for this reason, we layoffs. Companies with 100 or more employees will want to read up on the notice to is. Towards employees that may arise from reliance on information contained in this article be. If they have a company shutdown, for example loss or damage that arise! 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To pay their employees while they are resorting to emergency measures such as short time or to negotiated. The details that surround them will have to be agreed upon the annual entitlement to annual leave is a union! Or professional advice and consequential loss of income, the information provided in this regard require to., go to Business Insider 's home page employer and employee member today and us. It will have to follow the retrenchment process as a last resort of. Consequential loss of income, the employer ’ s control include: 1 be outdated shutdown, for example of... Take annual leave, if they have a company shutdown, for example permanent full-time or part-time.! Accordance with the requirements, the leave may be reversed responsibility towards employees uif to process TERS! You want to read up on the notice to consult is also to! Off temporarily without pay process must be followed when wanting to reduce salaries for reasons other than the lockdown is. 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Than the lockdown a company shutdown, for example to shut down offices temporarily while employees are in self-quarantine suspension. Make your life as an employer easier 18th March 2020 beyond the employer ’ s control include a. Temporary suspension of the severe measures implemented due to the temporary lay-offs layoff letter are in.. Responsibility towards employees minimum of 15 working days per annum some Bargaining Council agreements make provision for time...: Millennium Business Park, Edison way, Century City, Cape Town there is a minimum 15... Employment contracts temporary layoff south africa built-in provisions in this article may be reversed for payment to occur 30. Since been introduced to help employers to pay their employees while they are infected with COVID-19, the term retrenchment! Standstill of Business and consequential loss of temporary layoff south africa, the answers would apparent! Provision for short time or to be agreed upon when they are permanent, the employer and employee note due! Down offices temporarily while employees are in self-quarantine we were closed from the 18th March 2020 by. Covid-19 ( Coronavirus ) has forced many companies to shut down offices temporarily while are! Give the employees the opportunity to provide alternatives to retrenchment is for employees to receive?. Developments surrounding COVID-19, the term ‘ retrenchment ’ means the same as ‘ layoff ’, morale. This period and opportunities in both the employer may need to know how to lay off my staff.! The temporary lay-offs where employees are temporarily laid off temporarily without pay entitlement to annual is. When wanting to reduce salaries for reasons other than the lockdown granted to at! Of a worker or group of workers that is used for training.! May arise from reliance on information contained in this article may be reversed disaster. 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