The Minister of Employment and Labour announced the Unemployment Insurance Fund Temporary Employee/Employer Relief Scheme.
On 25 March 2020, the Minister of Employment and Labour announced the Unemployment Insurance Fund (UIF) Temporary Employee/Employer Relief Scheme in response to the impact of COVID-19. The programme is called “C19-TERS”. C19-TERS was well-received by companies but some of the initial requirements were restrictive.
The Minister issued an amendment to the UIF Directive on 8 April 2020 (government gazette number 43216). We discuss the changes to C19-TERS below. Please refer to our previous alert on this topic. The amended UIF Directive: Who qualifies? The original directive issued on 25 March 2020 required that the company close its operations for a period of three (3) months or a lesser period and suffer financial distress.
A very strict interpretation would be for companies to close completely and the directive did not accommodate scenarios where the companies could still run parts of their business operations during the lockdown. The term “financial distress” was also not defined but this requirement has now been removed.
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