COVID-19 SAIPA Updates

Claiming from the UIF

25 March 2020

Claiming from the UIF
Where a contributor (employee contributing to UIF) has to be self-quarantined for 14 days and or in special circumstances more than 14 days, the contributor will be covered under Part C of the Unemployment Insurance Act, as amended (Illness benefits).

Forms and documents for reduced work time (short term shut down)

  • UI 2.1 (application form)
  • UI19 and UI2.7 (completed by Employer)
  • UI 2.8 (banking details form completed by the bank)
  • A letter from the Employer confirming company shutdown or employee’s “temporary lay-off” is due to the Corona Virus (Reduced work time)
  • Copy of Employee’s ID document

In terms of section 12(1) b of the Unemployment Insurance Act, as amended, the maximum UI benefit will be paid as per the benefit structure if the employer pays
R 0.00 amount to the employee during the shutdown period.

However, if a certain Rand value is paid during the shutdown period, then the UIF benefit will be reduced (difference between the benefit level and amount received as income).

Part C of the Unemployment Insurance Act, as amended:

Illness benefits
This portion corresponds to cases where companies decide that a contributor must be self-quarantined for 14 days and/or in special circumstances more than 14 days, the contributor will be covered under Part C of the Unemployment Insurance Act, as amended (Illness benefits).

Process to follow

The current Illness Benefit application process will apply with the following exceptions:

  • A confirmation letter from both the employer and employee must be submitted together with the Illness application as proof that both the employer and employee have agreed to the 14 days ‘special leave’.
  • The letters will replace the medical certificate on the Illness application form (UI2.2) as the beneficiary would have self – quarantined without prior consultation with a medical practitioner. Benefits will be paid based on these letters.
  • Should an employee be quarantined for more than 14 days, a medical certificate from a medical practitioner must be submitted together with the Continuation Form UI3.

Forms and documents for illness claims (quarantined for 14 days or more than 14 days)

  • UI2.2 (medical portion to be ignored)
  • UI19 and UI2.7 (to be completed by Employer)
  • UI 2.8 (banking details completed by the bank)
  • Copy of ID document.

Employer confirmation (standard letter to be completed)

Employee confirmation (standard letter to be complete

Illness benefit payment

In terms of section 13(3) of the Unemployment Insurance Act, as amended, the accumulation of credits is at the rate of 4:1 (every 4 days worked and contributed, 1 days credit is accrued) in a 4-year cycle from the date of unemployment up a maximum of 365 days. In terms of section 21(2) of the Unemployment Insurance Act, as amended:

  • The maximum UI benefit will be paid as per the benefit structure if the employer pays R 0.00 amount to the employee during the quarantine period.
  • However, if a certain Rand value is paid during the quarantine period, then the UI benefit could be reduced (the combined value should not be more than the remuneration the employee would have received if not on quarantine). UI3 to be completed at the expiry of the 14 days for payment to be executed into the employee’s bank account.

If period is beyond 14 days, further UI3 is required with completed medical portion for payment into employee’s bank account.