Actions are being taken against companies that do not comply with the Unemployment Insurance Fund (UIF) Act, according to the Department of Employment and Labour.
The department said in a statement on Wednesday that phase two of the UIF “Follow the Money Project” which began this month is targeting non-employees and employers who have retained the Temporary Employer and Employee Relief Program (Covid-19). 19 Ters) for their own money instead of paying their employees.
Speaking at a breakfast session with employers in Mafikeng, North West on Tuesday, UIF Commissioner Teboho Maruping said the fund is in place as well as implementing an overtime recovery process.
The commissioner said that before March 2020, the previous process where the workers were not notified by the employers will be implemented. In such cases, 70 percent of the two percent invested in the fund will be returned immediately, he said.
“In these cases, only 30% are returned from employers for a certain period of time. In cases where UIF funds are requested but do not reach the intended workers, 50% are immediately returned by our teams,” Commissioner Maruping told employers.
This initiative is part of Phase 2 of UIF’s “Follow the Money Project”, which has recovered over R900m.
The project enabled the UIF to hire six auditing firms to monitor all covid-19 contracts to ensure that the right amount was paid to workers at the right time.
Maruping said the six audit firms are currently visiting employers to conduct internal verification of posted workers through a group called the Fund.
“We are investigating all the companies that have been paid for the Covid-19 Teres, but we are currently focusing on those that have been the focus of the Auditor General of South Africa. Once that is done, we will visit other companies that have been paid by the UIF.
“When we visit you for the ‘Follow the Money Project’, we are checking the information you have communicated with us, we are looking at the number of employees and figures that the employer has communicated with the fund,” he said.
Maruping also spoke about the importance of complying with the fund’s rules.
“Employers are required by Section 56 of the Unemployment Insurance Act (UIA) and Chapter 2 of the Unemployment Insurance Contribution Act (UICA) to register and notify their employees and pay monthly contributions,” said Maruping.
UIF Deputy Director of Compliance Sifamandla Gumede called on employers to comply with the law, warning of the legal risks companies may face if they do not comply with the UI Act.