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“The Unemployment Insurance Fund (UIF) will continue to provide assistance to workers and distressed companies in times of need.” 

These are the sentiments of UIF Commissioner, Teboho Maruping, as he reflected on the Fund’s intervention when sporadic unrest occurred in July 2021, which affected businesses in Gauteng and KwaZulu-Natal provinces. When the unrests occurred, the UIF stepped in to help sustain the livelihoods of 6 644 workers who were negatively impacted by the unrests, with a total pay-out of R21.8 million. 

Arising from the unrest, the Workers Affected by Unrest (WABU) temporary financial relief scheme was established to assist workers whose workplaces were closed due to the unrests, resulting in workers receiving partial remuneration or no pay at all. 

The temporary financial relief scheme was created over and above the special Covid-19 TERS Relief Scheme which was implemented since March 2020, and for which the Fund disbursed R64 billion to workers from across the country.

Since August 2021, the UIF received more than 2 000 WABU applications but approved only 165, after physical verification was done by labour inspectors of the Department of Employment & Labour. 

A directive issued at the time required employers to apply on behalf of affected workers, and the following were set as qualifying conditions: 

• The employer will have to register or be registered with the UIF; 
• The employer’s closure must be directly linked to the destruction, damage or looting of its workplace;
• The employer must provide details of the destruction, closure, or damage to, or looting of, its workplace and submit documentary proof of a report to the South African Police Services, with proof that a case has been opened by providing a case number, and if insured, proof of submission and acknowledgement of receipt of the insurance claim.
• The employer must confirm in writing or electronically that – he/she accepts the terms of the Scheme herein and any procedure document issued by the UIF; and 
• Submit any other information that the Minister or UIF Commissioner may require to assess the eligibility of the claim.

Commissioner Maruping says the Fund will continue implementing interventions in line with its mandate to stimulate job creation, enhance employability of the unemployed, preserve jobs and improve operational efficiencies of companies in distress. 

“The UIF is very pleased that we have been able to assist workers each time we were called upon. As a Fund responsible for providing social relief, our duty is to ensure that workers are able to take care of themselves and their families in difficult times,” says Maruping.   

He added that the UIF’s assistance to workers since the arrival of the Covid-19 pandemic is evidence of the Fund’s capability to respond to crises situations that affect workers and businesses. 

The Commissioner assured the public that businesses who benefited from the WABU scheme were not immune to scrutiny, as they too are being audited to ensure that funds were paid over to employees. 

“I have instructed our “follow the money” auditors to knock on the doors of all businesses who received funds for their employees. To-date we have visited 97 companies and we will continue to verify payments until all funds are fully accounted for,” explains Maruping. 

The results of the WABU “follow the money” project has revealed to date that: 

• 97 employers were audited and 74 of them were found to be operating due to the UIF intervention and 76% of jobs were saved;
• One company is in the process of being liquidated;
• One is suspected fraud due to non-availability of records; and
• One is under ownership change; 

As an added fraud prevention measure, payments of WABU funds were made directly into verified worker bank accounts, unless the UIF Commissioner specified conditions under which payments could be made into the employer’s account.

Issued by Department of Employment and Labour