COVID-19 Lockdown – 27 March to 16 April 2020

Update 21 April: The Department of Employment and Labour has opened a dedicated UIF toll free hotline, running 8am – 10pm Monday to Friday. The number is 0800 030 007.

Please note: The information provided in this blog is correct at the time of writing, but as this is an unprecedented and ever-changing situation, we will do our best to ensure we keep ourselves and our clients up to date. Please check back regularly for updates – we will also notify you of these by email and system notifications.

Should you have any queries over the content or processes to follow within this blog, please contact our support team via [email protected]

A Note on UIF Forms: Our existing functionality allows you to submit the monthly consolidated UI-19 for all employees each month directly to the UIF from the SimplePay website. We’re glad to inform you that the new functionality providing UI-19 forms for individuals is now live. This is needed for employees to claim.

Queries about UIF payments being delayed should be directed to the UIF. Unfortunately we won’t be able to provide much insight or assistance with this. Contact details for the UIF processing centre can be found in this the Easy Aid Guide for Employers.

7 April 2020: Closure of the labour offices for in person applications. Rechannelling  of applications to interactive methods.

30 March 2020: Information on the option for employers to complete the UIF application on behalf of their employees. Further UIF code 10 is unpacked, related to employees who fall ill.

27 March 2020: 

  • Greater detail on the process required to submit both types of UIF applications has been added, including who is responsible for each part of the process.
  • More information on what is required when handling employees with reduced hours, to enable them to claim a benefit.
  • Clarification on the different codes required when ending your employee’s service in different situations.
  • Brief update on the progress of TERS at the foot of the blog.

26 March 2020: Updated the requirements for form UI 2.8 to be accompanied by a bank statement, stamped by the bank.

On Monday 23 March, President Ramaphosa announced a 21 day lockdown from 23:59 on Thursday 26 March. Many South Africans welcomed this but are also uncertain as to what this means for their employees and businesses. Over the past few days, the respective Governmental Departments have released information regarding plans to support companies and their employees through the COVID-19 pandemic. 

The aim of this blog is to provide guidance to employers on the options available to them around paying employees, putting them on paid and unpaid leave and UIF benefits.

Earlier in the week we let you know that our team has gone fully remote and are pleased to be able to support our clients and employees in this way. In some sectors, this mode of working can be adopted relatively easily and many have already done so; however, for a lot of sectors and employees this is unfortunately not an option. For those employers who have to scale back or suspend regular activities, the following options exist:

Options for Healthy Employees Impacted by Reduced Hours or Temporary Closure 

Where employees are healthy and able to work, but are prevented from doing so due to the lockdown, employers and employees can agree that annual leave be used to cover some or all of the lockdown period on full pay. You are also always able to extend extra paid leave days to all employees should you so wish.

Where none of the paid leave types are an option, employees can be put on unpaid leave. Employees impacted in this way are able to claim Unemployment Insurance Fund (UIF) benefits as a result of either reduced hours or closure. To do this on SimplePay, you will need to provide a code when ending your employee’s service. Please use code 17 for temporary closure or reduced hours, i.e use this code if employees are expected to return to work on 17 April 2020. It is important to note that you must end the employee’s service on SimplePay. If you simply record unpaid leave on the calendar, UIF will not be claimable by employees.

The government intends to extend UIF benefits for these employees for up to three months. Employees who receive no income will be entitled to full UIF benefits.

If you’re paying your employees reduced pay, a partial UIF benefit will be available. For this benefit to be available, there must be an agreement between the employer and their employees to reduce hours as an alternative to retrenchment.

Procedure for Healthy Employees Impacted by Reduced Hours or Temporary Closure to Claim UIF benefits

To claim UIF for a reduction in hours or temporary closure, the following must be completed:

  1. Contact and inform the relevant provincial department representative of your temporary closure/reduction in hours. The contact details for each of the offices can be found on page 3 of the Easy Aid Guide for Employers.
  2. The following forms and documents need to be completed for each employee:
    1. UI 2.1 (application form)
    2. UI19 (Submitted monthly by the employer) and UI 2.7 (completed by Employer)
    3. UI 2.8 (accompanied by a bank statement, stamped by the bank)
    4. A letter from the Employer confirming company shutdown or employee’s “temporary lay-off” ( or reduced work time ) is due to the Corona Virus 
    5. Copy of Employee’s ID document
  3. Once completed, these forms need to be submitted to the UIF. Claims can be done online once the employee has registered, or via email or fax, details listed on page 7 of the Easy Aid Guide. The UIF processing centres are now closed over lockdown and cannot be used. If an employer wishes to do this on behalf of their employee, provided they have all the necessary information, this is possible by emailing the relevant processing centre with the required documents. ( n.b. Form UI2.8 could prove difficult for the employer to obtain now that lockdown is in force).
  4. To ensure the employee can claim, the must ensure they have:
    • A copy of 13-digit bar-coded identity document
    • A copy of your last six payslips
    • UI-19 supplied by your employer
    • A service certificate from the employer (point 2.4, provided by the employer)
    • Proof of registration as a work seeker
    • A fully completed registration form

This may appear a daunting number of forms, but it is worth noting that the provincial departments, listed in the Easy Aid Guide, will provide the necessary assistance with the application and payment of this benefit type. SimplePay is also in the process of making these forms available through our system, lessening the burden on you and reducing the chance of human error.

Additionally, if your business employs 50 or more employees, who may be subject to temporary lay offs, rapid response teams have been formed to aid you with this process. In respect to this you need to get into contact with your provincial office, as listed in the Easy Aid Guide.

Options for Employees who are suspected or diagnosed with COVID-19

The requirement that an employee suspected of, or is diagnosed with COVID-19, must self isolate for 14 days remains in place. This period can be covered using an employee’s sick leave as with any other instance of illness. If the employee has no sick leave, you can agree to have them use annual leave otherwise they may be placed on unpaid leave. As above, the option to grant additional paid leave is also available. For all of these, record leave on SimplePay as usual.

Where the employee has had to be placed on unpaid leave as a result of contracting COVID-19, the following options to receive some income exist:

  1. Apply for an illness benefit through UIF 
    1. This covers the 14 day isolation and requires several documents, including a letter of agreement signed by employer and employee. 
    2. This period can be extended if required. 
    3. Full details on documents required and the application process can be found at the end of this post.
  2. Apply for compensation for Occupationally Acquired COVID-19 Disease, through the recently amended Compensation for Occupational Injuries and Diseases Act (COIDA)
    1. This is available if the employee contracted COVID-19 in their place of work or on a business trip to another country or area.
    2. More details can be found in this Government Notice and the process to claim is outlined at the end of this post.

Procedure for Employees who are Suspected or Diagnosed with COVID-19 to Claim UIF benefits

To claim UIF for an illness benefit, the following must be completed:

  1. Fill in the following forms:
    1. A confirmation letter from both the employer and employee, stating that they have agreed to 14 days of “special leave”, due to COVID-19.
    2. UI 2.2 (medical portion to be ignored, as this is substituted by the above letter. This is because the employee will already be in quarantine).
    3. UI 19 (which can be completed through SimplePay) and UI 2.7 (completed by Employer)
    4. UI 2.8 (accompanied by a bank statement, stamped by the bank)
    5. Copy of employee’s ID document.
  2. On SimplePay, when completing the employee’s End Service, please use UIF code 10 – Illness leave.
  3. Once completed, these forms need to be submitted to lodge the claim. An application can be lodged in one of the following ways:
    1. Online at www.ufiling.co.za 
    2. Email or fax the nearest UIF processing centre. (information found on page 7 of this link). If an employer wishes to do this on behalf of their employee, provided they have all the necessary information, this is possible by emailing the relevant processing centre with the required documents. ( n.b. Form UI2.8 could prove difficult for the employer to obtain now that lockdown is in force).
  4. To ensure the employee can claim, alongside the other documents they must ensure they have:
    • A copy of 13-digit bar-coded identity document
    • A copy of your last six payslips
    • A service certificate from the employer
    • A fully completed registration form

Unlike temporary closure, there is no bespoke assistance for the filing of this application. It is likely though that there are fewer employees that qualify for this benefit, lessening the administrative load. If you do experience any difficulties, we would encourage you to touch base with your nearest UIF processing centre for guidance.

At the end of the 14 day period a UI3 form needs to be completed, for the payment to be executed into the employee’s bank account. This should either be done on the ufiling website, or by emailing or faxing your closest UIF Processing centre, as listed in the aid guide. If the employee remains ill beyond the 14 day period, they must obtain a medical certificate from a medical practitioner and submit a further UI3 in order to be able to continue to claim the benefit.

Options for Healthy Employees Impacted by a Permanent Closure  of Business

Unfortunately, in some cases the strains on your business may be too great, resulting in your company ceasing to operate permanently. If this is true for yourself, you should use code 14, denoting permanent closures, i.e use this code if, upon the completion of the 21-day lockdown, the employee shall not continue their employment. Same as for the temporary closure process above, you must end the employee’s service on SimplePay in order for the employee to be able to claim UIF.

In this scenario, the normal process for claiming UIF will likely need to be followed. Therefore, the 3 months extended period of UIF benefit will probably not be applicable.

Procedure for Claiming under COIDA

There are a few key components to being able to claim under this system. The following are required elements:

  • The employee must test positive for the COVID-19 virus (as defined in COIDA).
  • The contraction of the virus must arise out of and happen in the course of employment.
  • There must be a realistic and logical explanation for the exposure to COVID-19, which occurred in the course of employment.

If the above statements apply to an employee, they could be entitled to claim under COIDA. More detail on the requirements can be found here

WATCH THIS SPACE: Temporary Employer Relief Scheme (TERS) and other Relief Measures for Employers

In an effort to avoid retrenchment, the Government is also in consultation to pay wages of employees in struggling companies through the Temporary Employer-Employee Relief Scheme. To gain an insight into the sheme, the process required to participate and to see some templates of the required forms, please send an email to “[email protected]”. You will receive an automated response with all this information. We will also be providing more information on this and other relief measures in our next blog post next week.

As always, we’re here to help where we can. Please feel free to get in touch if you need help with any of the above on SimplePay.

Team SimplePay

Should you have any queries over the content or processes to follow within this blog, please contact our support team via [email protected]


51 Replies to “COVID-19 Lockdown – 27 March to 16 April 2020”

  1. I have been in contact with UIF since Tuesday. The UIF informed us to use code 14 on our UI19 forms. Code 14 = Company Closure. It has been very confusing navigating this process since different sources give different messages. Please can you confirm whether code 17 or code 14 should be used with the UIF office themselves.

    1. Hi Lizette, thank you for your comment. We have updated our blog to provide more information on when to use code 14 and when to use code 17. Companies that cease to operate permanently should use code 14. Where a company plans to temporarily close or have reduced hours for employees, code 17 should be used.

  2. Good day
    Upon having all the forms completed – does the employer send it to the department, (if so – how?) or does the employee need to attend to it themselves?

  3. Good morning
    Thank you for all this information.
    If an employer closes temporarily and terminates services of all employees using Code 17, can one re-instate all employees in Simple Pay using the previously captured information once we re-open? Or do you have to capture all basic and pay information again?

    1. Hi Jill. You will be able to re-instate your employees when you re-open. All employee and payroll information will still be there once employees have been re-instated.

      1. Hi Alan
        Thank you for your reply. And also for staying on top of this evolving situation. Your support levels are fantastic!

  4. Good day, Must we claim via Ufiling? For Unemployment, if the company is only closed for the lock down period? Not sure how to claim for this

  5. Good afternoon
    There has been loads of confusing information being sent out about how to apply for UIF benefits – and also changes to what’s required. So these blogs are extremely helpful thank you.
    I know you mentioned that you would be giving further info on TERS – so I may be jumping the gun – but what would be better for our employees – to be paid via the UIF for temporary closure or to be paid via TERS? TERS have sent me the information required to apply – but the format they require is a csv file from the payroll system? Will that be made available via SimplePay?

    1. Hi Paula, thanks for the feedback! We’re working to accommodate this CSV and other necessary changes. We’ll do an announcement in system when these changes are made available.

  6. Since Monday i am struggling to find out about people already receiving uif,next date to sign is second of April, what are we to do?

  7. Thanks for this very useful information. You mentioned that we need to send an email to [email protected] and one would receive an automated response. This however is not happening and therefore unsure whether they are simply overwhelmed or whether there is some other issue ?

    1. Hi Matthew, I see that the UIF phone lines also seem to be experiencing issues. I am not sure the reason behind this and hope that they resolve any issues soon. Have you had any luck today with receiving an automated response from that email address?

  8. We have offered temporary lay-offs as part of a negotiation with our team. Some of them has requested to take this option, however we are concerned that they will loose their medical aid if laid-off. At these times, it seems irresponsible to let someone knowingly choose to be without medical aid. Is there anyway around this? I.e can we reduce income to zero during temporary layoff and still process benefits against the UIF claim?

  9. Hi Alan

    Please advise if Simplepay can extract the file in the correct format requested to apply for TERS. The note on the automatic response: With reference to the prescribed template;

    Below information in the table are mandatory . The file should be exported in CSV format with Pipe delimiter (|) from the payroll system. Indication of Header and Footer should be made as highlighted below.

    Thanks

    1. Hi Natasja, we are working on catering for the CSV for TERS. We will put up notifications on the system when this and any other changes are made.

  10. Good day
    I resigned from the company that I used to work for, three years ago. I only got another job on the 24th of February 2020. This new company has put me on month to month contract. We are also on lockdown and I don’t have annual leave. Can I also claim for UIF?

  11. Please can you send an example of how much the employee can budget to get out if we submit the UIF Covid forms if they earn R5k, R10k, R20k and R30k.

  12. Hi Alan

    Please advise if I can apply using code 17 as I was informed I will have to take a 20% salary cut for at least 3-4 months after the lock down period. Can I still apply for UIF for receiving reduced pay?

    1. Hi Kundai

      Thanks for your question.

      At this stage, it’s unfortunately not possible to capture leave in bulk. We are however working to implement that functionality as a high priority. I don’t have a timeline yet but we will definitely let everyone know via the system and blog when this is available. If you need additional assistance with staff leave, please get in touch with our support team on [email protected].

      Keep well and have a lovely weekend.

  13. Desperately trying to get assistance for normal UIF
    No responses to any phone call nor email
    Who can help?
    Online registration is not working where bank account is concerned

  14. Hi Alan,

    Do you have any indication when the csv file for TERS purposes will be available, since it is the route prescribed by the department of labour.

    Obviously the sooner we can get the forms in the better for early payment.

    Regards

    1. Hi Johnny, we are working hard to get this implemented and we will make an announcement when it is made available.

  15. When will payments be done for UI6A forms submitted on 23.03.2020. We had to submit forms with no date on. No payment received as today, 30.03.2020

  16. I have signed online for my UIF last week, it is about 8 or 9 days now and still did not receive any payment. Why can this be?

    1. Hi Marie, unfortunately we can’t offer much insight or assistance with this. Our guess would be that the UIF are overwhelmed with the number of queries and we’d recommend reaching out to the relevant office. Our blog links to the Easy Aid Guide where you will be able to find the relevant contact details.

  17. We are looking at staff retrenchments. My question is: employees were notified of retrenchments with the last working day being the 30th of April. Can we still notify them that the period 1 – 17 April will be utilised against there leave days? What if the employees does not agree? If they agree, can it be within the same month as the last month in employment?

    1. Hi Wilene, this is quite a complicated query, our Customer Service team will get in contact with you. Ideally it would be best to seek labour advice from a lawyer as we’re not able to give labour law advice.

  18. Hi there. I would like to know how can i sign my ui19 documents during lockdown period my date is on 03/04/2020 my number 0611778166 I’d 8311105580081. I have already submitted my uif documents.

  19. We are essential services (farming) and all my employees informed me that they are not coming to work, althou I am registered as an essential service.

    What code should I use for uif claims and if they are entitled to any benefits.

  20. Hi Alan. Sorry, I may have missed it but how do individuals get the UI2.8 stamped by the bank during lockdown?

  21. Special Thank you to the Team of Simple Pay, by making things simpler for employers. Highly appreciated

  22. Hi Allen ,..I hope you would be able to assist me with my uif claim that is on the 15th of April 2020 ,..how do I go about it because the labour department in Parade street Cape Town is closed

  23. Hi Allen hope you are well,…was just wondering if you could be so kind as to assist me with my uif claim that is on 15th of April 2020 because the labour department in Parade street Cape Town is closed on my signing to pay date

  24. Paula posed the question: “but what would be better for our employees – to be paid via the UIF for temporary closure or to be paid via TERS? ” please can we have your opnion on this matter, as i have received the below information and I wish to validate it.

    It would seem that this benefit is only available to Companies who may close their
    operations entirely for up to 3 months and not be applicable to those who only place
    some of their Employees on a Temporary Lay-Off.

  25. Hi, pls help,I was supposed to go to sign for payment on the 1 of april.centers are not opened.must I wait for 17 to do so?

  26. Hi,

    If we are implementing salary cuts for the next 3 months due to reduced work inflow because of shutdown. Do we apply for TERS or UIF?

    Please explain the procedure,thanks

  27. Hi I am referring to the following
    “f you’re paying your employees reduced pay, a partial UIF benefit will be available. For this benefit to be available,” So what is the threshold for this benefit. Is it the R 6000.00 and less or does those that earn above this also qualify?
    Am I understanding correct that those that are laid off without any income qualify for the 70% of their Gross ( normal UIF benefits)
    and those that will receive partial income qualifies for the
    R 3 500.00

  28. Do you perhaps have any updates on the SARS payment?

    Just to confirm in the EMP201, we submit the full PAYE, SDL and UIF in the return and adjust the payment to 80% of PAYE only, 100 %SDL and 100% UIF?

    If you could provide clarity on the above, I read the SARS statement, I think this is the correct process, just asking for confirmation from your side – If you have the same process.

  29. Afternoon
    I was supposed to sign for my UIF payment on the 30th March 2020 but when I got to the Labour offices seems like they also on Lockdown.Do you perhaps know any other alternative besides the website.
    Someone gave me an email where I can submitt the UI.6A form but not really sure its legit.
    [email protected]

  30. Good day
    I want sign for my UIF online but I am struggling since my signing date was under lockdown can I please get help or should I wait for 21 days to pass and will it not be a problem if I sigh on the wrong date?

  31. Dear All,

    Thank you for all of your comments. Due to the large number of comments on the blog posts, we decided that in order to maintain our high level of customer service we would create an FAQ document, listing all the recurring questions in one place.

    This can be found on our Lockdown Week 1 Recap Blog.

    If this doesn’t address your question, please contact [email protected], who will do their best to assist you.

Comments are closed.