TERS Fund now open for Businesses affected by Alert Level 4 of Lockdown Regulations - News | Red Tape Reduction

TERS Fund now open for Businesses affected by Alert Level 4 of Lockdown Regulations

20 July 2021

The Department of Economic Development and Tourism encourages businesses to apply for the TERS fund. The Department of Employment and Labour has confirmed that the Unemployment Insurance Fund (UIF) would start processing TERS claims on the 19th of July, and that successful claims would start to be paid out from 26 July to all businesses and employees that were affected by lockdown Level 4 restrictions.

Below are a set of Frequently Asked Questions that will guide businesses going forward:

  1. Which establishments benefit from the TERS extension?

Covid19 TERS benefits have been extended for certain categories of employees. However, coverage will not be identical for all sectors.

Establishments who will be able to claim for periods between 16 March 2021 to 25 July 2021 or any period between the two dates are:

  • Venues hosting auctions;
  • Venues hosting professional sports;
  • Venues where social events are held;
  • Venues hosting concerts and live performance;
  • any industries that form part of the value chain of the above mentioned (at the discretion of the UIF)

Establishments who will be able to claim from 28 June 2021 to 25 July 2021 or any period between are:

  • Cinemas
  • Theatres
  • Casinos
  • Museums, galleries, libraries and archives
  • Gyms and fitness centres
  • Restaurants
  • Night clubs
  • Swimming pools
  • Bars, taverns, shebeens
  • Public parks
  • Domestic and international air travel;
  • Rail, bus services and taxi services
  • E-hailing services
  • Sale, dispensing and distribution and transport of liquor
  • Beaches, dams, rivers, lakes
  • Passenger ships
  • Hotels, lodges, bed and breakfast, timeshare facilities, resorts and guest houses;
  • Conferencing, dining, entertaining and bar facilities
  • International sports, arts and cultural events
  • Any industry and business establishment forming part of the value chain of the above as per the discretion of the UIF
  1. Which other employees may benefit from the TERS extension?
  • Employees who are on temporary lay-off or reduced work time within those sectors identified in item 1 of this document.
  • Employees who were employees (in all sectors) but required to self-isolate or quarantine to prevent the spread of Covid-19;
  • Employees aged 60 and above and who could not be reasonably accommodated in the workplace
  • Employees with co-morbidities and who could not be reasonably accommodated in the workplace
  1. What if I don’t fall within the identified categories of employees who can claim?

Affected employees who do not fall into the identified categories and not eligible to receive TERS benefits under the extension conditions, are able to access relief under the UI Act section 12 (1B), should they have credits available.

  1. What is the application process?

The application process remains the same and all claims must be lodged via the online TERS portal https://uifecc.labour.gov.za/covid19/ . Employers are required to upload the following documentation:

  • Signed approval / acceptance letter
  • Bank Confirmation Letter (current)
  • Proof of payment to employees for previous benefits claimed & received for the prior period (e.g. EFT, payroll report, pay recon)
  • Refund to the UIF (if applicable).
  • Letter of authority
  1. What if I am a first-time applicant?

If you have not yet claimed for Covid-19 TERS benefits, then you need to urgently activate your profile online, following the instructions to electronically sign the MOA and Letter of Undertaking, and upload your bank confirmation letter. The website URL is https://uifecc.labour.gov.za/covid19/

  1. What if I or my business falls under both categories of establishments as identified in item 1?

If you qualify to claim under both category of establishments mentioned in item 1 of this document, then you are encouraged to lodge a claim under Annexure A which covers 16 March 2021 to 25 July 2021.

  1. Is the payment mode still the same?

No, the UIF has taken a decision to pay Covid-19 TERS benefits directly into bank accounts of employees. Therefore, employers are requested to state payment medium as 1 (on the CSV and the direct capturing process) and insert the correct banking details of each employee. The banking details will be subjected to verification and if a perfect match of employee’s details to banking details is received then payment can be made. If no match can be made, the verification process will indicate as rejected and no payments will be transferred until banking details are corrected by the employer.

However, if the employer has given the employee an advance or utilized leave income to pay employees during the lockdown period, the employer can request direct payment to its bank account and state payment medium as 2 on the CSV file and on direct capturing process.

- Please ensure that all banking details are accurate and valid.

  1. What about Non-sectors claims?

The application process for non–sectors claims, i.e. those for vulnerable employees or those who’ve had to quarantine or self-isolate due to Covid-19, remains the same as for the previous iteration periods.

  1. Contact for the Western Cape

If you are experiencing any challenges with delays in payment after you have submitted your application, kindly e-mail your enquiry to redtape@westerncape.gov.za  or complete the contact form via our web page https://www.westerncape.gov.za/red-tape-reduction/contact-us

  1. Website address for TERS applications