UIF ignorance has dire consequences

Two brothers from Botshabelo are out of work and penniless because they failed to understand the law surrounding UIF.

Albert and Joseph Qwesha encountered problems with their jobs while working at SA Fence and Gate Investment Holdings. But instead of raising their concerns with the Department of Labour, they opted to stay at home and eventually resigned, forfeiting their UIF benefits despite having made contributions to the fund.

Albert said he started working for the company in 1996. But on the company’s records, his employment date is 2010.

His younger brother, Joseph, worked for the same company.

“We were forced to do overtime and work on weekends throughout our employment at the company. Our crime is that we did not complain to the labour department and now they cannot help us. We stayed hoping things would get better but we realised later that we were exploited. I worked very hard for this company but now I have nothing to show for it,” said a dejected Albert.

The compliance manager at Fence and Gate Investment Holding, Johannes Jacobs, dismissed the duo’s allegations of ill treatment.

“We regard the allegations of maltreatment as serious and have made inquiries into the matter. As SA Fence and Gate we are constantly striving to adhere to fair labour practices on all our sites. We deny any allegations of unfair labour practice against these workers. We currently employ a large number of employees on various sites. It necessitates no deliberations that any unfair actions of managers on site will be met with the necessary disciplinary action.

“The matter at hand has not formally been referred to any forum and accordingly we are not in any position to reply to the workers’ complaints. It was, however, discovered during our internal inquiries that the complainants were absconding from their work stations and have since requested to resign. No grievances were ever registered by the workers.”

The spokesperson for the provincial Department of Labour, Wisane Mavasa, said they have been experiencing challenges with people who do not approach the department when they encounter difficulties at their workplace. They only show up after they have quit their jobs and by then it is already too late to assist them.

“Unfortunately, these people will not get their UIF because they have quit their jobs. Our people must know that quitting their job is not the solution to the problems at work. They forfeit their UIF by doing this. They must come to us and speak up about the challenges at the workplace so that we can help them.”

However, in the Fence and Gate matter, Mavasa said a labour inspector did inspect the firm after an employee complained in 2010. The firm has been complying with fair labour practices since then.
Government introduced UIF in 2002 for all employees in the country, but many still do not understand how it works.

The UIF provides short-term relief for workers when they become unemployed. The conditions of unemployment considered by the fund include illness, maternity and adoption leave. It also gives preference to dependants of the contributors when they die. The fund provides for an unemployed worker for a period of six months.

Employees who work less than 24 hours per month are excluded from the fund. Learners, public servants, foreigners working on contract, workers who get a monthly state (old age) pension, and workers who only earn commission are also excluded.
The maximum earnings levels for contributors are set annually by the fund. This means all workers from the lowest level to the company director must contribute to the fund. All employers who remunerate their employees in cash or in kind must register with the fund as soon as they commence activities as an employer by making a deduction from the employee salary.
The Unemployment Insurance Act requires that all employees contribute one percent of their monthly salaries. In addition to this, the employer must also pay one percent for each worker. Non-compliance by employers to pay UIF may result in penalties such as fines, imprisonment, or both.

The unemployment benefit is awarded to someone who has lost their job because their employer decided to terminate their service. But if the worker resigns from their job, they forfeit their benefit despite having made a contribution.
Besides the unemployment benefit, there is also an illness benefit. The application must be made within six months of the date the worker ceases to work because of illness. The payment from the fund will be from the date the worker stopped working.

But the contributor does not qualify for UIF if the Compensation Fund is paying for injuries that caused temporary or permanent unemployment.

Another benefit is maternity where the female contributor is paid from the fund during pregnancy, confinement, or the period thereafter. There is also an adoption benefit that must be made within six months after the date of the order for adoption has been issued by a competent court. The adopted child must, however, be younger than two. One contributor of the adopting parents can apply for benefits. The benefits will be paid from the date the court grants an order of adoption.

In the event of the death of the contributor, the beneficiary must apply for benefits within six months. Dependants under the age of 25 can apply and are entitled to benefits if there is no surviving spouse.