In a blow to South Africans, the Covid-19 Temporary Employer/Employee Relief Scheme (TERS) has been stopped.
Business for South Africa (B4SA) yesterday said the Unemployment Insurance Fund’s (UIF) decision to halt TERS payments was unfair to those who lodged legitimate claims.
This comes after the organisation learnt that the TERS payments were halted pending investigations by the auditor-general owing to “system integrity” challenges.
The Covid-19 TERS payment was introduced as a financial support mechanism to employers and employees.
“The unilateral halting of all payments, and the very poor communication of the situation by the UIF leadership, is grossly unfair to all employees and their employers who have legitimate claims.
Robert Legh, chairman of the B4SA labour work stream, says: “That the UIF system is incapable of remedying the relatively small number of fraudulent claims without disadvantaging the millions of legitimate claimants is an indictment on the UIF system.”
B4SA was established shortly after the outbreak of the Coronavirus in South Africa, to help mitigate the health, labour market and economic impact of the Coronavirus.
The UIF did not indicate how long the investigation would last.
“B4SA further notes that the UIF call centre capacity has been radically reduced as of last week and that this will undoubtedly create additional challenges for the resolution of queries,” said Legh.
He said a team from B4SA has approached the UIF to aid with the process pro bono; however their offer has not been taken.
“Urgent intervention is required,” said Legh.
African News Agency